Saturday, May 25, 2019

How I respond to financial product promoters on train stations

As a buyer of consumer products, one observation I made : when a product needs to be sold aggressively by salesmen, it probably isn't a good one. The best products sell by itself without help from aggressive commission-based salesmen. This is especially true for financial products. The best financial products I bought are usually not promoted by salesmen.

It is getting common to be stopped by financial promoters at train stations nowadays. This is my usual responses when approached by financial promoters at train stations.

Response to insurance products promoters
"When buying insurance products, my main prority is protection. Please don't sell me insurance products that mix savings and investments with insurance. Sell me term-insurance products because they provide the most bang for the buck when it comes to protection."

On hearing this, the financial promoters will move on to selling other financial products such as savings/retirement products. Very few will actually promote term-insurance products even though I express my preference for term insurance products. No surprise because term insurance products pay poor commission to insurance agents.

Response to savings/retirement products promoters
"You mention your savings product pays X% interest income for Y number of years. How much of the interest is guaranteed? How much of the interest is projected? I'm wary of projected figures because they carry no contractual obligation. How does your savings product compare with Singapore Savings Bonds (SSB)? SSB is liquid and the interest rate is guaranteed. I can withdraw all the funds in SSB within one month without penalty. How long does my money need to be stuck in your savings product before I can start withdrawing with little or no penalty? How much penalty do I have to pay if I need to withdraw early for emergency reasons? I can also buy and sell conveniently bond ETFs on stock exchanges which offer similarly good interest rates as your savings products. How is your savings products superior to these bond ETFs, given that these bond ETFs come with low fees, probably lower fees than your savings products?"

Projected returns carry no contractual obligation and can be abused by aggressive financial promoters. I'm careful about making financial decisions based on projected numbers, especially when they are dangled by aggressive salesmen.

Financial promoters like to compare the much higher interest rates of their savings product with bank deposits. That is not the right comparison. I use Singapore Savings Bonds(SSB) as a benchmark when comparing with savings products. It is liquid, super-safe guaranteed by AAA-rated Singapore government and comes with very good interest rates for the liquidity. Besides SSB, I can also buy fixed-income investment-grade and high-yield bond ETF on stock exchanges as an alternative to the savings products.

When the financial promoter finally decides I am not keen to buy their savings and insurance products, they will move on to promoting their investment products.

Response to investment products promoters
"How much are the management fees charged by your investment fund? Why should I buy your actively managed fund when passive index funds have much cheaper management fees and have demonstrated superior long-term track record of outperforming most active investment funds? Is your investment fund cheaper than passive fund? If no, does it have superior long-term track record of outperforming cheap passive index funds?"

Index funds and ETFs are usually cheaper and better than most actively managed investment funds. I can easily buy and sell passively managed funds conveniently through ETFs on the stock exchange.

Incentives drive human behaviour. Bad incentives drive humans to behave badly. I don't blame financial promoters for behaving badly. I blame the bad incentives. If I were a financial promoter, I will also focus on selling the best-commission product. No need to be hypocritical about that. One reason I have deep trust for the engineering profession is that it is much harder for engineers to get away with bad behaviour. It is not that engineers are most honest or more moral than financial Wall-Street folks. If the engineering work is inferior, short-cuts are being taken causing the product to work poorly, customers will know. Conformance to specifications can be tested objectively. Engineers cannot hide behind the disclaimer like "All investments carry risk" when performance fails and still get paid handsome fees in a down year. I have the deepest respects for fund managers who do not charge management fees, given that it is the industry norm to transfer investment risks to clients because of the disclaimer "All investments carry risk".

Based on my experience as a consumer of financial products, I have come to the conclusion that good financial products are bought, bad financial products are sold. Good financial products are bought independently by knowledgeable financially literate consumers and they tend not to be promoted. Bad financial products are sold aggressively by commission-driven salesmen to financially ignorant consumers. So, is fee-based financial advice the solution? Sadly, not for the masses. The fees of fee-based financial advisers are usually so high that it makes financial sense only for the rich to engage them. If you are not rich, their fees will suck up a high percentage of your savings.

When it comes to money, it is best to rely on ownself. Help your own money or risk others helping themselves to your money.


  1. It's a fallacy that term insurance have lousy commission per se

  2. Hmm .. so far no promoters ever stop me. My days are over. Sad or happy?

    1. Lol! Last time act blur ignore them they will still rush to approach me. Now wear shorts & slippers even look at them they look away! Bittersweet feeling? Hopefully more sweet than bitter!

    2. Hi CreateWealth8888,

      The financial promoters will stop those belonging to their targeted age group. Can be old or young. Maybe they don't stop you because you have that wise and financially savvy look? :)

      Anyway, no need to be sad even if no promoters stop you because you are not missing out on something good. Good financial deals are usually not sold to you. You have to actively seek them out yourself. Same as when you buy stocks. The popular ones that are frequently talked about are seldom the good stocks to buy. You have to actively seek out the good stocks yourself.

  3. Hi Hyom
    What do you think of DIY insurance schemes that do not go through brokers? Do you think ones insurance needs can be completely serviced through this without any (third party helpers)?

    1. Hi INTJ,

      When I bought insurance for my family several years ago, I did research using information available on the insurers' websites and decide on what to buy. I don't see why DIY cannot be done.

      I have not used the DIY insurance website you provided before.

  4. Can use CompareFirst website
    to source direct purchase insurance, which are cheaper coz no agent commission -- you buy direct from insurance companies. But got limit of $400K for term. If want higher need to go thru usual agents & buy the standard policies with the usual built-in commissions. Of course you can get multiple $400K DPI terms, but there is some loss of economies of scale, and some insurers may disallow multiple DPI terms for 1 person. They have to protect their profitability & not piss their agents!

    1. Hi Anonymous (Sunday, May 26, 2019 at 2:26:00 PM GMT+8),

      Thank you. Looks like a useful website for DIY insurance buyers.

      I don't think $400k is enough for breadwinners who need to support parents and kids. I bought $1m life coverage from Aviva Mindef Group Life insurance in case I'm no longer around to support them. It's the most value-for-money term life insurance I can find but it is available only to Singaporeans who have done NS.

  5. Actually term insurance has the highest commission in terms of percentage as compared to other product, the reason why it is low is because the premium is low . Therefore, usually insurance agent will boost the protection amount in such a way the premium would be 1k-2k plus thn advise you to pay annually using discount as a bait because if you pay annually ,the commission is like 50% for first year which make it worthwhile . I was one of the agent

    1. Hi Unknown Tuesday, May 28, 2019 at 11:56:00 PM GMT+8m,

      Interesting nugget from an industry insider about term insurance paying the highest commission in terms of percentage compared to other products.

      My premiums for term insurance is not low to the extent that it is not worth the agents' time and energy. Term health insurance premiums for my family this year is way more than $2k and my term life insurance with Aviva Mindef is in the $1k-$2k range.

      As a customer, I care about the absolute amount I'm paying and want the most bang for the buck for protection. If the agent gets handsomely paid for offering me a good deal, I don't mind paying.

      Since term insurance has the highest commission in terms of percentage for the insurance agent and provides the most bang for the buck for the customer in terms of protection, it's a win-win situation for both parties. Making more win-win deals like these will also boost the image of insurance agents. When you go to online money forums, it is plain obvious that insurance agents are not well looked upon, especially by financially literate consumers.

      If I were an insurance agent, I will focus on selling term insurance for the entire family to boost the insurance premium and thereby, commission. Most importantly, it's a win-win situation. Make money by doing good and creating genuine value for customers. Much better than getting rich off ignorant customers.

  6. Packers and Movers Gurgaon Provide Reliable, Safe and Certified Service Provider list, Get Free ***Best Price Quotaition and Compare Charges. ???Hassle free Household Shifting Services, High Quality packing Material, Office Relocation, Car Transportaion, ###Local and Domestic Shifting Service @
    Packers And Movers Gurgaon

  7. Packers and Movers Bangalore as a Services providing company can make all the difference to your ###Home Relocation experience. Bangalore based Company which offers versatile solutions, Right team that easily reduce the stress associated with a ✔✔✔Household Shifting, ***Vehicle Transportation. we help things run smoothly and reduce breakages and offer you seamless, Affordable, Reliable Shifting Services, Compare Shifting Charges
    Packers And Movers Bangalore

  8. Packers and Movers Ahmedabad - We Provide ***Best Service Providers, Safe, Reliable, Affordable, Trusted ###Movers and Packers in Ahmedabad List, Household Shifting, Office Relocation: Choose Top Verified Packers and Movers Ahmedabad Compare ✔✔✔Shifting Service Chrages, Price Quotation, Rate List Charts and Save Money and Time @ Packers and Movers Ahmedabad

  9. Packers and Movers Chennai Give Safe and Reliable ***Household Shifting Services in Chennai with Reasonable ###Packers and Movers Price Quotation. We Provide Household Shifting, Office Relocation, ✔✔✔ Local and Domestic Transportation Services, Affordable and Reliable Shifting Service Charges @ Packers And Movers Chennai

  10. Get Packers and Movers Jaipur List of Top Reliable, 100% Affordable, Verified and Secured Service Provider. Get Free ###Packers and Movers Jaipur Price Quotation instantly and Save Cost and Time. Packers and Movers Jaipur ??? Reviews and Compare Charges for household Shifting, Home/Office Relocation, ***Car Transportation, Pet Relocation, Bike SHifting @ Packers And Movers Jaipur

  11. Packers and Movers Hyderabad Give Certified and Verified Service Providers, Cheap and Best ###Office Relocation Charges, ***Home Shifting, ✔✔✔Goods Insurance worth Rs. 10,000, Assurance for Local and Domestic House Shifting. Safe and Reliable Household Shifting Services in Hyderabad with Reasonable Packers and Movers Price Quotation @ Packers And Movers Hyderabad

  12. Nd10x Review All Day And You Will Realize 6 Things About Yourself You Never Knew

  13. Whatever the location, send an email to recent customers (particular ones you know enjoyed what you have to offer) and encourage them to post a review. Most marketing channels take time before they start generating you a profit, but the beautiful thing about paid advertising is that it can provide an immediate return. Even if you know you can't fix the situation, or you know it wasn't business's fault, it's important to show future customers who come to your page that you tried to resolve the issue. Below, I'll introduce you to the modern online marketing funnel model—the framework that should drive your entire digital marketing strategy. Database marketing is the process of collecting and analysing customer information to implement marketing strategies that make money. This is why one of the wisest use of photographs in B2B content marketing is to simply include photographs of yourself and your team on your website, social media, and blogs. Ultimately, the goal is to attract visitors to your website when they search for products, services, or information related to your business.

    An expert SEO and digital marketing specialist helps you make this change. The content you create to execute that marketing tactic may include blog posts, white papers, and videos. These reviews double as social proof, which can help you attract and convert more customers. Run an online store or sell services, reach to your customers via advertisements or emails and offer them a discount for every new referred person. If you struggle for content, consider answering your customers' frequent questions. My view on this, explained in the post above is that we do very much need digital marketing, since many businesses still undergoing digital transformation and recruiting the digital marketing jobs and roles needed to compete. The idea behind it is to drive an audience to your site using content that addresses pain points of your target audience, which in turn gives your brand credibility. Email marketing is a great way to get more brand recognition and improve your reach overtime. Each of the above marketing strategies are free in terms of dollars spent, but they do require an investment of your time.


  14. Do you need Personal Loan?
    Business Cash Loan?
    Unsecured Loan
    Fast and Simple Loan?
    Quick Application Process?
    Approvals within 24-72 Hours?
    No Hidden Fees Loan?
    Funding in less than 1 Week?
    Get unsecured working capital?
    Contact Us At
    Phone number :+16474864724 (Whatsapp Only)

    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Credit Card Clearance Loan
    *Debt Consolidation Loan
    *Business Loans And many More:

    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Marital status:....
    Home Address:..
    Mobile / Cell:....
    Monthly Income:....

    Contact Us At
    Phone number :+16474864724 (Whatsapp Only)

  15. Believing These 10 Myths About The Kibo Code Review Keeps You From Growing

  16. Excellent Blog! I would like to thank for the efforts you have made in writing this post. I am hoping the same best work from you in the future as well. I wanted to thank you for this websites! Thanks for sharing. Great websites! Packers And Movers Mumbai

  17. Get Shifting/Relocation Quotation from ###Packers and Movers Delhi. Packers and Movers Delhi 100% Affordable and Reliable ***Household Shifting Services. Compare Transportation Charges and Save Time, Verified and Trusted Packers and Movers in Delhi, Cheap and Safe Local, Domestic House Shifting @
    Packers And Movers Delhi