Gold, coffee, sugar, rice are all commodities. This means that no matter who produce those, they are all the same. Like those afore-mentioned ones, financial products are commodities as well. Just a disclaimer, I draw the inspirations from Wilfred Ling's blog:
Look at the article here. I agree with Wilfred, financial planners who differentiate themselves in terms of products they sell are sad people. In fact, I feel sad for any marketer from any industry who does that as well. Honestly, products can be easily copied and then priced cheaper, how to fight ah!?
Frankly speaking, there are so many different investment and insurance products out there competing amongst each other. I cannot even compare all of them myself, let alone, you the consumer to compare them all. Once in a while, somebody will ask me for the comparison of all the similar type of financial product in the market. I will then explain to him that it is not necessarily because financial products will constantly outdo each other in the market. There is no such thing as "best product" in the market. I will go on further explaining that financial products are really just commodities, the differential point lies in the planner executing it. Why I recommend the particular product from a particular company is because it is my best advice and recommendation for him at the moment. Nothing else matters really.
Generally speaking, the public still doesn't see us as planners and advisers albeit the fancy titles. Personally, most people who aren't my clients still see me as an insurance/investment salesman. Hence, the blog. Really, products aren't the most important process in financial planning although that is where (we) get our income from. Financial products are getting tougher to sell really, hence I'm sticking to write financial plans for a fee.
Some of us ask what to look out for in a financial planner. My answer is simple - you must be comfortable and you must also trust him. In other words, in your eyes you must see him as if he is your own family doctor.
Category: Financial Planning | 3 Comments