Sunday 19 August 2018

Road to $1000 000 - Financial Consultants

Recently, a few of my polytechnic friends have become insurance agents, they have decided on being an insurance agent after learning about the prospects of it. Being from a science course in polytechnic, I was surprised that my course mates have decided to choose to become insurance agents.

In Singapore, there are many bad impressions of being a financial consultant. Mostly is that some of your friends or family might begin to keep a distance from you because they are afraid that you would want them to purchase your products or that you will keep pestering them. But I do believe that if you are able to come across one who is committed to give you the best and thoughtful,  it is a bonus.



This is why most people are skeptical of when they are being approached by a young financial consultant especially so when they have just graduated or are just starting out. Of course, every financial consultants have to take an exam which test their knowledge before they can start promoting and selling products. Having experience in seeing many different cases can mean a difference because the assessment done can be more in-depth and also more scenarios can be assessed. Even though, an experienced FC is a good choice, the young and not so experienced one do have their seniors to count back on. So be on the lookout and make sure your FC know what they are selling.

Understanding of not just products but YOU!

Even though the product is important but FCs need to be clear about your status in terms of how much you can afford each month and whether it really is necessary. I have heard of people who have have signed up for plans that is so huge a burden for them monthly and over a long period of time. This can be extremely stressful for the person as no extra cash can be saved up. If the FC do know your monthly cash flow and how much you are able to contribute then it would have been a better relationship. Because by burdening the client with such a plan that takes up a huge portion of the client's cash, it is difficult to further introduce further plans for them in the future.


Talks down to you

Not everyone who goes to a FC knows what products will be best for them and also might not have much financial literacy. However, this doesn't mean that the client has to accept whatever the FC suggest. Instead, they should be explaining it in simpler terms for clients to understand. Of course, questions should definitely be asked when in doubt as well.

Doesn't speak their mind

Clients might have ideas on what they want to put their money into. It could a high risk product that might not be suitable for the client right now. It is the FC duty to then suggest if it is okay and give reasons why it is or is not the best way or to let the client know about the risks. Communication between both parties are really important even though ultimately the decision lies with the client but the FC should give adequate information and not just say yes to earn commissions.

Overall, a good FC can help you reach your goal or be nearer to it, it could be to $1000 000 or whatever it is. The crucial thing is that both parties are comfortable with each other.

No comments:

Post a Comment