Posted tagged ‘financial doctor’

Financial advisor or product salesman?

June 23, 2008

One newspaper in Mumbai has this headlined in one of their news items. It is an article on page 3 of the paper – telling people not to self medicate. It warns people of malaria, gastro, and generally saying if you have fever please go to a doctor.

However, a few pages later there is a chemist who runs a column on whether you should buy life insurance or no! Sorry I have no clue about the author. However, in India there is no clear line between a “financial planner”, “financial adviser” a “certified financial consultant” or a financial product salesman or what have you!

So you do not know whether you are dealing with a chemist or a doctor. At least medically speaking I know I am running the risk of going to a chemist (not recommended) instead of going to a doctor (recommended)! In case of a medical emergency at least my body will throw up some symptoms which will make me revisit my decision of going to a chemist.

In case of a financial decision my choice of going to a chemist maybe a bad decision, but I may not get the signals that it is a bad decision for a long time.

Say I find out that my decision to put money in a medical insurance or a pension plan was WRONG at the age of 55 years, maybe I cannot do anything about it. That would be a tragedy.

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