You are right in a way. Of course, the banks and the advisers
are aggressive in their selling as it is their livelihood. They
earned commission for a living. There is no free lunch in this
world just as you won't work for a company for free, would you? Of
course, if you dislike the idea paying them for their time and
service, you can always do it on your own. But somehow or rather
you will still incur some form of charges too.
"The financial Fact finder is designed to always show a need for
some knid of financial product."
There is definately a need for financial protection against
death, disability and Illnesses as majority of the population is
not adequately covered. The fact finder is just a tool to help you
to identify these areas.
"Even if you have all the products and all the money in the
world, you are definately short of something..."
If you REALLY have all the money in this world, you will not be
short of anything financially. There is no need for you to buy any
product.
"you need to have money before they are your friends."
Partly agreed on this. You need to have enough cash flow in
order to invest in financial instruments. The fees is paid to them
for their services to you (I mean the competent and responsible
kind). You cant expect them to do it for free as they have a family
to feed too.
"When you are approached to buy insurance, try to steer towards
Term insurance.... (Term insurance has very low commission to the
seller.)
They would most probably cite that Life insurance has a return and
etc etc.
(Also better for them because they get better commission).
Once you sign, you sign for life."
I agreed that term insurance has a low commission payout.
Although Term plan is cheap, the main purpose of term is to
complement your basic plan to cover your protection shortfall for a
affordable price within your budget. Besides, all term plan won't
cover you over age 65. I believed that the advisors you met are
incompetent kind. The competent advisors would advise you that you
buy a term to cover for your shortfall of coverage. But again,
there is some ppl that don't feel comfortable to pay for the term
for a long period of time without any cash value. It is up to each
individual's choice and you make the DECISION not the advisors
whether or not to take up the plan.
Buy only what you can afford, not based on what you are
projected to earn. You should be comfortable with your monthly
payments. In today's world, I would suggest less than 3%.
I totally agreed on this statement. The realistic projected
return (depending on which investment instruments) currently now
(not the future) is ard 3% or more. As the economy turns to
blooming, the return will definately be higher than 3% just as the
bank would increase their interest rate which is currently 0.125%.
During the good old days, when our economy is blooming like mad,
the bank interest rate is ard 3% i think.
