All of us want to create wealth, have to enjoy a good lifestyle and everyone agree that money is an integral part for a joyful life. The sad part is when it comes to investing money people are not open for options, open discussions and clear communication. Investors widely have a perception that if the person who is selling the product comes to know that investor doesn’t have much knowledge about the product its shame. So the investor will restrict his questions with his advisor and make investments. The other category of investor is who feels that he knows everything about finance and investment and doesn’t require any advisor. In which category you belong to? Both this options will lead to wrong selling. Let’s see how?
Who is an advisor? What is his job? Why should he come to you? If you can answer this question half of the job is done. An advisor is a qualified person (HUMAN), His job is to sell products, and He is coming to you to make money for his living, and working under pressure from his boss. If you don’t ask questions you are giving him an option to sell u a wrong product which doesn’t suit your requirement but he is getting more commission and chances for a foreign tour from his employer.
If you invest by your own methodology and using your advisor as a courier boy you may miss some good opportunity or product which you may not know. In mutual funds there are almost 3000 schemes to choose from, in insurance there are several companies offering various products. For a normal person it will be difficult to find time to understand all the products, all of us has our own work tensions and a person working in software will be expert in software but not always expert in personal finance, so it’s always better to have a professional to support in achieving your financial goals. Do keep this in mind.
Ask your advisor how much he earns by selling the product
Don’t be in a hurry. Wealth creation is a long term process.
Don’t sign blank documents
Avoid signing power of attorney to your broker
Always keep in mind wealth creation is a long term process. No shortcut available.
Never invest in a product by its name( Children plans in reality is a normal endowment plan)
These are few things you need to keep in mind before making any investment decisions. I believe wrong selling can be avoided or restricted only if the investors are educated. The mantra is the person who is selling is here to make his living better you ensure that you live and let him live his life.
