5 Things Your Financial Advisor Didn’t Tell You about Investing !

5 Things Your Financial Advisor Didn’t Tell You about Investing

Investment is a term that we come across often these days, as it has become a part of the common lingua franca of people. We hear people utter statements like, “I invested my time and energy in this assignment/ in this relationship’’, but technically the word investment is related to financial gains. Investment in plain and simple terms means when you purchase something with money in the hopes of reaping the benefits when its value increases in the future.

Investments can be made in various outlets; some of the common ones are real estate, stocks and share market, and bank deposits. If you are a novice when it comes to investing, you would do better by seeking help from a financial advisor.

ps: Term insurance is not an investment plan 🙂

Our financial experts have rummaged through and come up with these five pointers to help you invest wisely –

5 Things Your Financial Advisor Didn’t Tell You About Investing!

Financial Advisor

  • It’s Just a Visage

Financial Advisors may act concerned about you and may seem on the surface to have your best interests at heart but at the end of the day, they are salespeople. No matter how much they try to convince you that this particular policy is the best one for you, at the end of the day they are just trying to market the costliest product that they have. The costlier the product they manage to sell off the higher the commission that they procure. So, do not hang on to their every word as the ultimate truth. Hear them out, then go back home and do your side of the research and in the end decide which product ‘you’ want to buy. In addition, make sure to inquire your advisor about his source of payment, whether it is fee-based or commission-based.

  • Enquire About Philosophies and Strategies

Most financial advisors will try to push you towards either the most sought-after products or the most expensive ones. However, you need to be clear about your needs. Place your needs in front of your financial advisor and ask him or her about which investment policy would fit the bill best. Your reasons for investing should be for long-term targets such as paying for higher education, retirement, buying property for a new home saving up for your dream trip, etc.

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  • It’s a Gamble

Most financial advisors want to win your trust and faith by saying things like that your policy is bound to reap benefits in the future. Your advisor should be honest about the fact that investing is going to be a huge risk but that does not mean you should not try. Your scheme might crash and burn. So, be careful do not get swayed about what your advisor tries to tell you.

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  • You Can Recycle

If all your hard-earned cash is invested in a particular policy and then you want to invest in another but do not have liquid cash to do so, you can sell the proceeds from your tax-saving fund and put it in the other policy.

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  • It is Not the Best Advice!

When you take the help of a financial advisor to help think better, you should initiate the relationship by keeping this very important point in mind that the advice that you are being provided with may not be the best advice. So, refrain from trusting your financial advisor with your life.

  • You Will Be Charged, a lot!

Irrespective of the fact that you have a financial advisor or you are independently dealing with the situation on your own, you should be prepared for the truth that you will incur more expenses than you thought. Although you cannot evade the factor of fees when it comes to investing you should at least be assured of the fact that you are getting ‘value for money’, literally.


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