One of the things that makes me happy in life is a cup of good coffee in the morning. I would usually start my day by going to a coffee shop (different one every time), and order a coffee while I read the newspaper.
Financial advise is a lot like coffee, you can get it anywhere and they all taste and cost the same, except at that one special place. I would drive a long way for a good coffee and I am prepared to pay a bit more because life is short.
Now if you have to have a coffee and you have no choice as to where to go, at least know that the coffee is bad and don't over pay for it. The only way you will know that there is something better out there is if you shop around.
To illustrate my point take the following actual example:
A lady walks into our offices with an investment quote under her arm and asks us to look at it. She has R5mil to invest for the longer term. On the one page investment quote she is advised to put it all into a Matured Endowment Policy with 100% exposure to the Money Market and the adviser's commission is R100 000!
This is as BAD as coffee gets!
The moral of the story is to always get a second opinion and drink only good Coffee!
Next time I am going to write about a financial term I believe will start to pop up in the media more and more called " Rebalancing of your portfolio".
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