When I talk to a fellow Financial Advisor, they say that the best investment is life insurance.
When I talk to a fellow Certified Investment Solicitor (a CIS is licensed to sell mutual funds), they say that the best investment is mutual funds.
When I talk to a fellow Real Estate Broker, they say that the best investment is real estate.
I happen to be all 3 – Real Estate Broker (since 1993); Financial Advisor (since 2001); and CIC (since 2002) and when I listen to each of them, I don’t disagree nor agree with them because it’s not about what they sell.
It’s about what we do – to give value to what we provide to our clients whether it’s a product or a service. And what is this value? For the money that they invest, they expect something in return. To be more specific, they expect profit or gains from their investments; and to some, to address their financial requirements in the future – this can be in the form of life insurance or health insurance.
But nothing is guaranteed in investing. If there is, everybody would be investing. Some financial institutions though give guaranteed returns. But if you think about it, the returns are not even enough to cover the increase in inflation. So it’s not a gain but a loss.
A person who invests usually should have an investment horizon. It is a combination of courage (lack of fear); timing (it is indeed everything); and the person’s timeline; risk appetite; goal, which is the most important. Why are they investing? To have a good retirement income? To leave a legacy for their family? Goals differ from person to person.
For you to be trusted by your client, you need to look at all these so you can offer the best solution to your client’s financial requirements. But mind you, sometimes, your clients will be disappointed if it did not meet their expectations, even if you explained that this is part of the risk.
Having said all these, what is the best investment?
It depends from person to person.
And if you were able to help that person IN MEETING his or her goals or expectations when that person gives the money for a certain product or service, then that is the best investment.
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