Hi Hao Yuan,
I'm sorry to hear about your experience with your current advisor.
Firstly, let's address a simple fact: You have the right to say 'no' to your advisor. It is the consumer's choice to decide what financial concerns that they wish to address (in your case, insurance to cover housing/health/etc) , and if they have reason to believe that the proposed solution (ILP) does not address your concern, then you don't have to continue the discussion with him.
Now, about finding a genuine advisor, let's take a look at a few factors that you can take into consideration. Here are some ways you can find a financial advisor
Ask your friends - This is something that is very simple to do. Just ask your close friends if they know of a financial advisor that they have worked with, are happy about the quality of advice as well as the ethics of their advisor, and are open to sharing the contact; often, you should be able to get a few names from your friends, and then you can contact the advisor.
Social media - You can look for financial advisors online through platforms such as Facebook or Seedly (probably why you are posting this question). You can read and evaluate their responses to questions, this can tell you something about the way they approach financial planning, as well as to some extent, their knowledge, styles and ideals.
Look online - A simple Google search will reveal financial advisors who maintain blogs etc, which you can then explore their sites to find out more about them
When you meet them, (virtually or face to face), it'll be when you can communicate with them. Humans are wired to talk to other humans, else society would have a hard time existing. Let's talk about how to evaluate an advisor when you speak to him/her.
- It starts with you - Yes. That's right. You need to pick up some basic financial knowledge about financial planning yourself as well (just the really basic stuff like cash flow, purpose of insurance, etc, not advanced technicalities like mortality tables and such).
This works in a few ways; firstly, you need to know how financial planning works, so that when you speak with a financial advisor, you are able to speak the same language, and we'd be able to understand you better and your needs. Secondly, by picking up some basic knowledge, you know you won't get taken for a ride, and you'll be able to judge when talking to an advisor if he/she has the in-depth subject matter knowledge and yet is still able to distill complex financial concepts into easy to digest bits. Lastly, by having some financial planning knowledge, you will be able to better understand your own needs and requirements, and you'll be able to have that red flag pop up if you sense you are being taken for a ride, or that the advisor is not addressing your concerns.
- Trust but verify - This involves you talking to a financial advisor to share your situation, what you are looking for, and getting his/her views on what solutions may solve your problems (in this case, your need to get coverage for housing/health/life)
Trust that the advisor is giving you advice that is meant to benefit your situation, but also ensure that if in doubt, verify by getting the advisor to justify why he/she is recommending this or that product. For example, a competent advisor should be able to explain from start to end the importance of insurance; the type of insurance suiting your scenario; the types of solutions that may meet your needs, and why he/she selected a particular plan.
- The connection - This is almost impossible to gauge until you have spoken with the advisor. As I mentioned, humans are wired to talk to other humans, we do not live as an island. Your advisor should be able to relate to your situation (showing empathy) but also be there to advise you if certain things that you are about to do will lead to financial ruin. We're here to provide perspectives, but ultimately the client must decide the course of action he or she wishes to take.
You must also be comfortable to share your situation down to the details with your advisor, as our advice is based on what you tell us.
Your advisor is here to walk the journey with you, so ensure that you select someone you are comfortable to work with for a long time. As you are still young, your financial needs will evolve and what better way to get advice than to return to the advisor who already knows you from when you started working with him/her?
I hope this helps bring some clarity to you. Good luck in your search!
Hi Hao Yuan,
I'm sorry to hear about your experience with your current advisor.
Firstly, let's address a simple fact: You have the right to say 'no' to your advisor. It is the consumer's choice to decide what financial concerns that they wish to address (in your case, insurance to cover housing/health/etc) , and if they have reason to believe that the proposed solution (ILP) does not address your concern, then you don't have to continue the discussion with him.
Now, about finding a genuine advisor, let's take a look at a few factors that you can take into consideration. Here are some ways you can find a financial advisor
Ask your friends - This is something that is very simple to do. Just ask your close friends if they know of a financial advisor that they have worked with, are happy about the quality of advice as well as the ethics of their advisor, and are open to sharing the contact; often, you should be able to get a few names from your friends, and then you can contact the advisor.
Social media - You can look for financial advisors online through platforms such as Facebook or Seedly (probably why you are posting this question). You can read and evaluate their responses to questions, this can tell you something about the way they approach financial planning, as well as to some extent, their knowledge, styles and ideals.
Look online - A simple Google search will reveal financial advisors who maintain blogs etc, which you can then explore their sites to find out more about them
When you meet them, (virtually or face to face), it'll be when you can communicate with them. Humans are wired to talk to other humans, else society would have a hard time existing. Let's talk about how to evaluate an advisor when you speak to him/her.
This works in a few ways; firstly, you need to know how financial planning works, so that when you speak with a financial advisor, you are able to speak the same language, and we'd be able to understand you better and your needs. Secondly, by picking up some basic knowledge, you know you won't get taken for a ride, and you'll be able to judge when talking to an advisor if he/she has the in-depth subject matter knowledge and yet is still able to distill complex financial concepts into easy to digest bits. Lastly, by having some financial planning knowledge, you will be able to better understand your own needs and requirements, and you'll be able to have that red flag pop up if you sense you are being taken for a ride, or that the advisor is not addressing your concerns.
Trust that the advisor is giving you advice that is meant to benefit your situation, but also ensure that if in doubt, verify by getting the advisor to justify why he/she is recommending this or that product. For example, a competent advisor should be able to explain from start to end the importance of insurance; the type of insurance suiting your scenario; the types of solutions that may meet your needs, and why he/she selected a particular plan.
You must also be comfortable to share your situation down to the details with your advisor, as our advice is based on what you tell us.
Your advisor is here to walk the journey with you, so ensure that you select someone you are comfortable to work with for a long time. As you are still young, your financial needs will evolve and what better way to get advice than to return to the advisor who already knows you from when you started working with him/her?
I hope this helps bring some clarity to you. Good luck in your search!