Good advice versus good products

Clients are being confronted with this dilemma on a regular basis, and in most instances unknowingly.

In the era we live, people are seeking tangible and immediate benefit and reward. With good marketing, people are often under the impression that the products they have completely takes care of their actual needs as well, and perhaps that is how it is being presented to them.

Your first priority should always be to address the risks in your life and to obtain sufficient protection against unforeseen events. You should follow a process with an independent professional advisor to cover all the areas that can and will affect you and your loved ones financially and emotionally.

Once you and your advisor have determined what is required based on your personal circumstances and shortfalls, you can start to discuss available products that will best address those needs. Affordability, product choice, additional benefits, your lifestyle and personal preference will play a role in determining which products to implement.

The products choice should never take preference over the process and actual shortfalls identified.

With more additional (non core) benefits included in products, the more complex they become and with more terms and conditions. Make sure you know how all these benefits, discounts, rewards, terms and conditions work and also when it will apply or not apply.

We see it all too often that clients have products they can afford, that includes numerous marketed benefits and rewards. But then there is a massive disconnect between what they need and what they actually have. And it becomes clear that a proper planning process was never followed and good advice were not provided.

If you received good independent advice, your risk needs should be adequately covered, giving you and your family peace of mind. The products you have should be suitable to your actual needs, lifestyle, qualifications and occupation and you should also understand all the terms and conditions of your products.

Peace of mind first, bells and whistles later.

Jacques Hodsdon – MCom Tax | CA(SA) | CFP ® is a Director of Affluence Group and specialises in Investments, Personal and Business planning
For enquiries contact, jacques@afgroup.co.za or 0823011332