Let’s be honest – we all try to buy policies which help in tax savings but often we end up taking advice from our near and dear ones. The reason is simple – they are the people we know and we can trust. But, is it the best way of going forward if we really want to make smart decisions?
At EPFP catalyst, we come across a lot of people who have been making bad policy and investment decisions for a long time. Most of the time they are fooled by brokers and agents, and a lot of them also become victims of haphazard investments because of trusting their relatives or friends.
It is human nature to trust the opinion of someone we know even when that person is not a professional in that particular field. However, when it comes to financial decisions, it might lead to problems which take long to rectify. During one of our free consultation sessions, we were approached by a person who told us that he/she had bought different policies over the years on the insistence of their relatives.
The person was visibly stressed because of the problems he/she was facing in managing the policies and the lack of information about different aspects of it. He/she confided in us that they felt cheated and wanted to take corrective measures.
Relatives and friends are supportive, and it is mostly true that they want to help us but because they are not experts, it is inevitable that they make a mistake. That’s why when you are approached by a friend or a relative who try to convince you for buying an investment plan, always do thorough research on it.
At the end of the day, it is your hard-earned money and you should invest it in the best assets. You can ask for some time to think about it and then talk to an expert about it, or you can also make use of the internet and learn about the pros and cons of the investment plan. Either way, you will definitely have some understanding of the product before you take the investment decision.
If you are not convinced about it, you always have the option of saying no. Remember – it is your money and you should not invest it in any product which you are not entirely convinced about. Now, coming to a more important point. This problem mostly stems from the fact that a lot of people today are not financially literate, which means they do not have the required knowledge to be able to make the right investment decisions.
Therefore, it is always advised that you gain the financial knowledge and learn to invest yourself. This is a necessary 21st century skill and you should not be relying on others’ opinion to make your decisions. Lastly, if you have already invested in some products because of coercion, contact us for expert advice.