Investment Planning

I had remember that a common question that was thrown at me in my earlier years of my practice was how long will I be in the business and what happens if I quit. I am proud to say that I am still in the business serving the same group of people who may had asked me that more than a decade ago. One of the strangest thought I had seen in financial advisors is that financial advisors assume they will never quit the business, they will never retire or they will live longer than any of their clients. We advocate legacy planning but not many advisors actually practice it. I will share briefly how our company investment services minimise the concern the client have such as when the advisor quits the business.

An insurance policy is a legal contract binding between the policy holder and the insurance company. What this means is that the policy holder can purchase a policy, keep it in the safe deposit and never ever to see it again till a claim arises. However, that is not true for an investment plan. 

 If there are two gardeners and both planted a seed on the same day. The first gardener took pains to water the seed daily, put fertilizer and remove any weeds growing around it while the second garden leave the watering to mother nature that is to water only when it rains. I believe both seeds will still grow to a strong tree in 10 or 20 years but which tree would you think will bear more and sweeter fruits?  Investment planning is like planting a tree. Both investors can invest an initial of $20,000 and the first investor does a regular review with his financial advisor while the second investor don’t. Which investor is likely to see a better returns for their investment?

What I believe is not only a review of investment but there must be a system in place for investment. That is the reason why I am with First Principal Financial because we practice responsible investing thru assets allocation, diversification and re-balancing at a company level done by an investment committee. The client will recieve consistent reporting, monitoring and review of their investment that is done at coporate level.   Which means that in the event that the financial advisor is not around to service the investor because he had left the business by choice or by chance, the next servicing advisor will have the same investment philosophy and method of review for the client even if he happens to be inexperience.

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