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What to say when your financial adviser friends say “Wanna catch up”?

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Header picture source: Unsplash

This article was not reviewed by Monetary Authority of Singapore (MAS) or any other relevant authorities.

SOURCE: WAKE UP, SINGAPORE

“mai lai la” (don’t beat around the bush) or “confirm want to sell me stuff” would probably the first thing that comes to mind when you receive the “wanna catch up” text from your financial adviser friends.

If you had a smirk at the meme above, you would probably already have a preconceived notion about them and be frantically thinking of a million reasons to turn down their meet up.

But, are they only what this meme narrate them to be?

It is a common misconception that financial advisers reach out to people JUST for their personal gain. While there might be some black sheep that make this true, there would be financial advisers who are passionate in working with you so as to achieve your financial goals, financial freedom and/or assist you in times of crisis. So, before you send your reply, let us first try to understand what their main job scope is.

What do financial advisors mainly do?

Stage 1: Wealth Protection

Protection GIFs - Get the best GIF on GIPHY
Source: GIPHY

This seeks to help clients get insured for fundamental things such as personal accidents, death, critical illnesses or disabilities.

In times of these crises, financial advisers would submit claims to their company, based on the policies that the clients have, so as to help clients and/or their families receive monetary assistance.

Stage 2: Wealth Accumulation

season 3 episode 13 GIF by SpongeBob SquarePants
Source: GIPHY

With wealth protection in place which would ease clients’ worries in times of crises, wealth accumulation could come into the picture.

This seeks to help clients grow their wealth, which means financial advisers work together with them to achieve financial growth and goals. For example, through endowment and investment plans.

Stage 3: Asset Planning & Legacy Planning

Plan GIF by memecandy
Source: GIPHY

This seeks to help clients plan for their next generation’s finances.

Okay… so how does this relate to me?

Now, let us be real, you would not wake up one day and immediately think, “Okay, I need to buy insurance today” or “I need to do up my endowment plans today”. More realistically, you would be thinking “What should I eat for lunch today?” (at least for me).

But, when crises such as accidents really happen, thoughts such as “I should have bought insurance” or “I should have had planned out my life savings” are very likely to arise.

So, why should we wait only until crises to happen to motivate us to contact a financial adviser?

Even in times of crises, bills, lifestyle expenses, loan repayment and liabilities will continue to run. But, would you still have the capacity to pay for them? You don’t have to wait till then to realise the importance of insurance.

Alright so, what do I say?

You could give your financial adviser friends a chance and understand what they have to offer first. Maybe go ahead and say yes, if you are thinking to avoid the should have(s)—especially when life is already in a crisis. Otherwise, you could also fill up this form to engage another financial adviser!