how does financial advisor work?
VMC Membership Takaful Advisor
Hi hi. I know a little bit about FA but not much. So am hoping to get some advise cause i really thinking of getting help from one.
I imagine an FA will sit with me and go through all my finances, like my cc debts, other loans and installments and my salary and other expenses, then he or she will advise how best to sort out my money, and how much to invest and where to invest? Is my assumption right?
And how do i pay him or her? Do they earn a comm from the investment i make? Lifetime? Thanks in advance!
Yes, sort of. It depends whether the FAR (Financial Adviser Representative) charge you only advisory fees, if you do not buy any products from him/her. Some they charge you both advisory and getting commission from product provider if you buy any products (will not affect your product pricing); and some they only do you a favour by free consultation and they only earn commission from the product provider if you buy. Usually will fact find and get all your financial figures including soft financial like your concerns and your planning. You will have better understanding of your current financial standings and what you can do to improve it, example how to manage your income, expenditure and debts.
As 80% of Malaysian filled bankruptcy due to their credit card outstanding. Since few years back, Bank Negara Malaysia had control by only maximum 2 credit cards per individual with annual earning more than RM36,000 and one credit card for those earning less than RM36,000 annually. It actually impact bank's credit card business but it helps Rakyat to save of tons of money for credit card interest.
For credit card holder, use it wisely.
It was such a knowledgeable share. I am also in need of best certified financial planner india that can help me plan my investment portfolio. I didn’t know how they work so was curious to know all this. This thread is giving me great insights. Thanks for this share.