Financial Potential with a Consultant, Not a Salesman

Maximise Your Financial Potential with a Consultant, Not a Salesperson!

When acquiring an offshore savings plan, portfolio bond, or investment fund from a financial salesman, commissions are applied, potentially influencing the advice provided. Financial product providers in various jurisdictions, such as the Isle of Man, Guernsey, Dublin, Mauritius, the Cayman Islands, and Bermuda, compensate financial salespeople through commission-based structures. This system has the potential to be highly transparent and free from corruption. Only a limited number of highly skilled financial consultants exist globally, and they operate within a system that is not advantageous to their profession.

Suppose you acquired a residential property, and the real estate agent responsible for the transaction collected the customary 3% initial commission in addition to imposing a 1% annual fee based on the potential rental income for the entire duration of your ownership. Suppose it is revealed that the 3% upfront commission and 1% annual charge were determined by the property’s developer rather than the real estate agent. Additionally, it should be noted that there were comparable properties available for purchase nearby from a different developer, requiring only a 0.4% upfront payment. However, it appears that your real estate agent did not inform you about these alternatives. It would be surprising to you, wouldn’t it? This is the typical outcome when an expatriate residing in Asia, China, the Middle East, Latin America, or any other location acquires a product or investment fund from a financial salesperson. When purchasing an investment fund through a salesperson, you are required to pay an initial commission based on a percentage of your invested capital, in addition to an ongoing commission for each subsequent year that you retain the recommended investment.

This arrangement often results in expatriates not having access to genuine financial consultants but rather encountering individuals who pose as advisors but are primarily motivated by commissions. These salespeople may persistently encourage you to engage in buying and selling activities, even when it may be more beneficial for you to refrain from doing so. It is important to mention that if they review your portfolio and find it satisfactory, you will receive no benefit. If financial advisors recommend liquidating all current investments and reallocating funds into new investment vehicles, they may charge a commission of 5% based on the total value of the investments. In summary, the most effective method to obtain impartial financial advice is to decline commissions and instead opt for performance-based compensation for guidance. This is our approach to consulting with other experts. Is it customary to compensate a notary in advance with a percentage of the will’s value when they draught it for you? No. The individuals are remunerated for the duration of their involvement.

Financial consultants should be treated equally. Qualified individuals who have successfully completed multiple examinations should be recognised as reputable experts and remunerated accordingly. There are a limited number of competent and exceptional financial consultants available, and it is perplexing why individuals would consider any other option rational. Regrettably, our support is not universally available. The phrase “not everyone” refers specifically to individuals employed as financial salespersons. It is intriguing when individuals become highly emotional and personally attack our comments, indicating their awareness of the weak foundation of their arguments. However, what is most notable is the absence of any valid justifications for the commission scheme they employ.

Advisors are now required to provide clients with the choice of paying commissions or a fee. However, it is advisable to opt for advisors who solely charge a performance fee. This is primarily because an increasing number of financial salespeople may be inclined to transition away from the commission system if more clients choose this alternative. Currently, it is challenging to locate performance-fee-only financial consultants. However, Expat Wealth At Work has been offering this type of financial planning assistance for over almost 13 years. Remarkably, 95% of our clients have remained with us for more than ten years. Our profession has suffered from a negative reputation due to financial salespeople who prioritise commissions. We are often associated with individuals who are driven by financial incentives, like used car dealers. We belong to a new generation of financial consultants who prioritise a client-centred approach, aiming to assist customers in achieving their financial objectives rather than solely focusing on maximising commissions. Consequently, we offer a service that charges fees based on performance, ensuring full transparency of costs. Moreover, we possess a high level of qualifications.

Expatriate clients prioritise cost-efficiency, and a skilled financial consultant will prove their worth by enhancing pension funds, reducing expenses, and maximising the longevity and productivity of their clients’ finances. For those who are interested, kindly reach out to us.