Financial Advisers can have great professions and be real assets to their communities, but they can fall prey to preventable mistakes. Errors 1 through 6 cover ethical concerns and 7 through ten cover business strategy and personal concerns.
1) Making uninformed decisions.
In order to eliminate problems, be sure to double check appropriate rates and facts about the product(s) you are offering.
2) Fraudulence
In order to stop fraud, go into your appointments with the attitude that you are going to do what is right for the client whether or not you make the sale.
3) Signing an application with fields left blank.
Make sure that the application is fully filled out prior to signing it.
4) Asking for a check in the adviser’s name.
This should never be done, because premiums or payments from clients belong to the firm under which the agent is employed and should never be intermingled with the adviser’s personal records.
5) Putting unwanted pressure on the customer.
Good sales agents can close a sale without using coercion. Always look out for the client’s best interest.
6) Failing to disclose possible issues of an investment product
The advisor is always obligated to disclose all elements of a financial product, regardless of whether the client chooses to purchase it.
7) Forgetting to learn
Financial advisors should always be learning more about their roles and how to help the community better. Good ways to do this are by studying books and attending conferences.
8 ) Forgetting to seek out new business
Even when financial advisors are successful, they should always be making partnerships with potential new customers so that their business will succeed in the long run. Ways to do this are through recommendations and participating in trade shows.
9) Forgetting that a good frame of mind is vital
Even when financial advisors are active in seeking out new customers, they must have a can-do attitude that will help support them during dry periods. Ways to foster a good attitude are to read inspirational books and to set aside time to do things they find enjoyable.
10) Neglecting to find a tutor.
Financial advisers need a good support system in place, because oftentimes they work on it’s own. A good coach can act as a instructor and a sounding board with whom younger financial advisers can share their joys and worries. Financial agents should contact their supervisors for ideas on how to find a mentor.
And also you? What are the top faults made by financial analysts?
About the author: Ashley Mulvey contributes articles for financial advisor career path , her hobby blog she uses to share her knowledge to assist people handle the facets of economic advisory.
SEARCH ENGINE KEYWORD RESULTS :
If I were to borrow money from a bank to invest in a property, I would incur a debt. Is this debt considered to be a good debt or bad debt? Well that really depends on who is paying off the debt. Based on the Rich Dad’s series by Robert Kiyosaki, a good debt is a debt where someone else is paying off for me while a bad debt is a debt where I need to pay off myself.
For example, if I were to rent out my property to someone, then I would be collecting rental income. This collected rental income could be used to pay off my mortgage loan. In this sense, I was the one who had borrowed the money but my tenant would be the one paying off my debt. However, if I had failed to rent out my property to anyone, then I would not be having any rental income. In other words, I would need to pay off the mortgage loan myself. Then this mortgage loan would be considered to be a bad debt.
If my property were rented out, then the debt would be a good debt. If my property failed to rent out, then the debt would be a bad debt. Depending on whether I had any tenant, my debt could be switching to and from bad debt to good debt in a given period of time. Thus, a good debt may not stay as a good debt indefinitely while a bad debt may not stay as a bad debt forever.
With this new understanding, there are two things that I can do to strengthen and protect my financial position.
Firstly, I can identify all my bad debts and try to convert them into good debts. For example, if I were to own a car but I rarely used it. I could rent it out to earn rental income. This rental income would be used for covering my car loan. In this way, I had converted a bad debt to a good debt.
If I failed to find someone to rent my car, I would try to settle my bad debt as soon as possible. Using the previous example, my car loan is a bad debt because every month I would need to service the loan repayment. Since I rarely used the car, then it may make sense for me to sell it off and pay off my bad debt.
Secondly, I need to do proper financial planning for all my good debts since there is a danger of a good debt becoming bad debt at any point of time. Based on what is learned from the Rich Dad’s series by Robert Kiyosaki, it is important to get into good debts to accumulate wealth. But how many or how much good debt should I be taking on?
For example, if I were to borrow from a bank to invest in a property, I would incur a debt. Since my property was rental out and the monthly rental income was more than the monthly mortgage loan repayment, then my debt was essentially a good debt.
Assuming I bought a property valued at $200K and I had loaned at 80% of the valuation price, then my good debt would be $160K. Now there were two possible scenarios that could change my good debt into bad debt.
The first scenario is that my tenant did not continue to lease my property and thus there were no more rental income. Without anymore rental incomes, then my debt would become bad debt. And suddenly, I would need to service my mortgage loan all by myself.
As a precaution based on my financial education, it is necessary for me to set aside 3 to 6 months of expenditure including mortgage loan repayment. If such a scenario were to happen, I would be able survive for at least 3 to 6 months. This period should be long enough for me to find new tenant or sell off my property.
The second scenario is that the valuation price of my property drop to $100K. Assuming that the bank only allowed me to borrow at a maximum limit of 80% of the valuation price, then I could only borrow $80k. Thus, the bank would have to force me to top up the difference of $80k. If I had failed to do so, then it would be considered to be a default on mortgage loan. The bank would have the right to sell off my property to reclaim the loss.
If I had more than one property, then I would be a much worst financial situation when the second scenario occurred. This is where financial education can plays an important part as highlighted by the Rich Dad Series by Robert Kiyosaki. With my financial education, I could determine how many and how much debts that I could take on without running into the risk of becoming bankrupt if the situation were to turn against me. That is I would not be overstretching myself with too many good debts. I would borrow within a reasonably safe limit.
Kim & Robert Kiyosaki – How We Got Out of Bad Debt!
SEARCH ENGINE KEYWORD RESULTS :
- Robert Kiyosaki
- buy silver vs pay debt
- good debt vs bad debt robert kiyosaki
- how to convert bad debt into good debt
- positive debt robert kiyosaki
- robert and kim kiyosaki secret to pay off your debt
These new interactive Web sites give you advice — some better than others — to help you reach goals.
Online financial-planning tools are getting more personal. Plenty of Web sites crank out cookie-cutter plans, but three recent entrants give users more detailed advice. Voyant, SimpliFi and ESPlannerBasic provide something more than a quick-and-dirty look at your financial state of affairs — for free.
These three sites cannot replace the personalized service of a financial planner, but they are helpful to most investors. You can use them to get a general idea of your finances and benchmark your progress without shelling out thousands of dollars for a session with an adviser. Those who use an adviser can treat the sites as a way to double-check their adviser’s plans.
Voyant
Pros: Voyant is the best of the bunch. Its slick interface lets you map your financial goals, such as buying a home or saving for your kids’ college, along an interactive timeline. It takes less than five minutes to enter the information needed to create a graphic display of your expected income and retirement savings.
You can test what-if scenarios quickly without entering much new information. For example, you can easily adjust the growth-rate assumptions of your investment portfolio with a sliding bar on the right side of the planning tool. Most calculators make you plug in a different rate each time you want to test a new scenario. Voyant also supplies a menu of events, such as starting a business or having a child, to see how those decisions will affect your finances.
Cons: But some of Voyant’s premade options are a little too cute. For instance, you click on an icon of a sports car to “plan” a midlife crisis. (If you could prepare for such a scenario, it wouldn’t be a crisis.)
No Web site would be complete nowadays without an attempt at social networking — in this case, a feeble one. Voyant lets you communicate with other users on the site’s forums. A button on the tool lets you contact financial advisers who use Voyant’s planning software. (The site is still struggling to sign up advisers. When I pushed the button, I was told “financial professionals” in my area — Washington D.C. — were not available for an online chat.)
Simplifi
Pros: As the name suggests, SimpliFi is not complicated. The site does a decent job at the broad strokes of financial planning. Spend a couple of minutes entering your data and you get a snapshot of how your goals match up with your savings and investments. An animated guide named Sophie grades your financial well-being from A to F. SimpliFi provides a suggested investment mix for your portfolio and a to-do list for other financial tasks, such as paying down debt or buying insurance.
Cons: SimpliFi’s advice is spotty in some areas. The site makes a big deal about its status as an investment adviser registered with the Securities and Exchange Commission, but its investing guidance is generic. Plus, it recommended that my wife and I buy term life insurance even though we have no children, no debt and more than enough savings to cover a funeral if one of us meets an untimely end.
ESPlannerBasic
Pros: ESPlannerBasic tackles financial planning from a different direction than the other sites. Instead of letting you set your own goals and working backward, the site asks you a series of questions to determine how much you can spend each year without compromising your lifestyle in retirement. The questionnaire takes about 30 minutes to complete. The site then generates annual spending, savings and life-insurance recommendations.
Cons: ESPlannerBasic’s drab interface, similar to Microsoft Excel’s, makes using this tool a chore. Plus, you have to estimate obscure statistics on your own, such as your salary in the year before retirement. (How many Gen Xers know that figure?) Granted, ESPlannerBasic is the bare-bones free version — the advanced copy has more features, including Monte Carlo simulations to forecast various investment scenarios. But after slogging through the basic tool, I don’t want to pay $149 for ESPlanner.
by Thomas M. Anderson
SEARCH ENGINE KEYWORD RESULTS :
- Financial planning by kiyosaki
- robert kiyosaki financial planning
- robert kiyosaki no kids
- robert kiyosaki\s financial plan
- sample financial plan kiyosaki
- voyant cash flow planning personal finance excel
