Speaking of financial professionals, today we'll like to share with our members 3 tips on how you can competently deal with your agents or brokers.

 

1. Match risk profile to investment goal

Just because you can afford to take a risk doesn't mean you need to take it. Many agents do risk profiling to check your risk level and simply recommend you the highest-commission products in that category. If you don't need higher potential returns to reach your investment goal, you don't need the extra risk. Remember, potential returns are not the same as actual ones.

 

2. Spend time for advice, not product pitches

You're not spending valuable time with your adviser just to listen to how good a product is. You're there to get advice. Talk about potential investments only after you have gone through an analysis of your financial goal and current situation. Advisers can recommend, but make your own decisions. Anytime you're getting confused, go back to discussing your investment objectives first. 

 

3. Get products you can easily understand

We can't stress how important this is. It's just common sense. If you can't evaluate a product, how can you judge its merits? Leave surprises for birthdays, not your financial statements.