Selecting a Financial Consultant - Debunking the Myth

In your time and efforts to manage your money and arrange for financial security, are you sometimes persuaded to get a product or engage a consultant's services based on claims such as for example:

"This can be the best financial product in the complete industry."
"We are the best financial services company."
"I am the very best Financial Consultant in the business."

Such statements aren't uncommon in the financial services industry, just how can you decide who to trust or which financial institution to place your organization with? You may be grappling with this issue once you graduate and begin planning your finances or simply even now as you take stock of one's retirement pans.

Why don't we look at these common statements to have a clearer picture of what is truth or myth:

1. "THIS CAN BE THE BEST FINANCIAL PRODUCT IN THE MARKET"

There is no one-size-fits-all product available in the market. What is ideal for one person may be unsuitable for another. A specialist Financial Consultant should gather information about your financial needs and status prior to making any recommendation. You'll expect your physician to prescribe medication only after he has made an analysis, so have the same expectations of one's financial consultant.

Ask your consultant: "On what basis is this recommendation ideal for me?"

2. "THE MORE AWARDS THE BETTER"

Awards do give a sign on a Financial Consultant's performance. However, do keep in mind that awards are mainly measured by sales performance. Just as an easy food chain that sells probably the most burgers may not have the very best cooks, a Financial Consultant who has achieved a high sales performance might not necessarily be the the most suitable person for you.

Ask your consultant: "How did you qualify for the awards?"

3. "WE ARE THE BEST FINANCIAL SERVICES COMPANY"

Reputation and branding matter however the key question is just how much emphasis you should place on them. Different financial services companies claim to function as best, so which is really the best? Well, they could all function as best and that depends on the basis of your measurement, for example, new business sales or assets under management. As being a hospital that has probably the most number of patients will not mean the doctor that you are seeing is the best.

Ask your consultant: "Best in what area?"

4. "WE CAN SOURCE FOR YOU THE VERY BEST PRODUCT FROM DIFFERENT COMPANIES"

That might be possible only if a Financial Consultant can have access to all financial products from all finance institutions and the financial loans can be easily compared to one another. Unfortunately, just like the theory of perfect competition in Economics, this could prove elusive in the real world. Major financial services companies still use their very own pool of Financial Consultants as the only distribution channel for most of their products. Furthermore, competing financial products usually have different advantages and disadvantages. Make sure the financial product recommended is the best suited for you rather than the one that is best for the Financial Consultant with regard to remuneration.

Ask your consultant: "How are you remunerated for the different options listed in your recommendations?"

When you run into these statements, make sure you ask the consultant to back them up.  http://www.Supervest.com  will assist you to make investment decisions that are appropriate for your preferences, and these change in accordance with what stage you will ever have you are at.