HAVE you ever come across a situation when your spouse has bought a costly fridge or a TV set or a Car without consulting you, other than to just surprise you on your birthday or wedding anniversary?
Or have you got home from work one day to discover that your wife has already sold your house without consulting you? Then how can you allow any third person to buy or sell stocks on your behalf without your express permission?
I normally advocate for hiring the services of an expert investment advisor or stock broker. But this is meant for delivering an expert advice and not to play around with your hard earned money.
I have come across many instances when with passage of time the investment advisor wins your trust and start playing around with your money without your express consent.
In such a situation the end result is known, as there is a good likelihood for you to lose money. When as a kid you watched a magic show for the first time, you were amazed how one pigeon turned into two... But then your dad explained to you that it was an illusion...
Similarly, when someone promises to double your money in a jiffy, he might also be showing you an illusion... If you fall prey to such illusions then you are bound to lose money in some or other way.
On similar lines, we often hear stories or instances when the so called trusted servant has committed a heinous crime and vanished with all valuables from the house. Why has it happened that way?
Because with passage of time we compromise our security and start having a blind faith in the person we have hired.
There is nothing wrong in trusting somebody; but there should always be an upper limit with necessary check and balances. The same applies on ‘Money Matters’ too.
Whether it is your banker, stock broker, cashier or investment advisor, please desist from having a blind faith in any of them. When it is the question of dealing with your hard earned money; always keep the ‘remote control’ in your own hands.
Evaluate carefully the advice offered by these financial operators. Don’t take instant decision on an advice if on the face it the given advice looks very lucrative and it is too good to believe.
Always keep yourself abreast of market trends. If the prevailing interest rates on long term deposits are hovering around 10-12% per annum and if somebody promises you a return of 20 or 30% then for sure something is amiss.
Check the credentials of your advisor/ broker as well as of the scheme offered. Take pains to visit the office of the said scheme operator and I am sure truth will come out.
Never ever have a blind faith on any financial operator when it is the matter of dealing with your money. Do necessary due diligence before you take a decision to sign on the dotted lines.
A little caution on your part [at the time of taking decision] will save you from many hours of misery at a later stage. People often make excuse that they are busy and thus can not devote their time on finding minute details.
But you have to devote time because it is the question of your own money. You must always insist from your agent a signed copy of the benefits illustration, which gives an indication of the returns and other benefits the fund will yield.
It is mandatory for life insurance companies to provide this copy. Your agent may promise the sky, but this document will acquaint you with the ground reality and thus help prevent a wrong decision on your part based on a mistaken premise.
Before I conclude our today’s topic, let me remind you where I started by cautioning you that “No Blind Faith Please – when it comes to money matters”.
Follow this mantra religiously, and I can assure you that no untoward incident will ever happen with your hard earned money.