Financial advisors in Sinagpore

[kid2kid]

My question is: How easy is it to be a financial advisor in singapore? is there are market for this within the expat community???

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[Strong Eagle]

There are a million "advisors" in Singapore. They crave the opportnity to glom onto one more business card that might be a lead. They segregate themselves... UK guys to handle UK expats with assets in the UK... same for the US and eveywhere else.

OK, maybe I am biased but I cannot see the point of an "advisor" with one tenth of the assets that I hold telling me where I should invest. If he is richer than me... well, maybe... except he probably made his dough from fees rather than being an actually good investor.

So, in summary, you'll find it an extremely competitive arena with a clientele much more sophisticated than the average TV junkie.

[kid2kid]

Clearly then you have never taken advice from anyone about anything? Surely that is not the case.
Someone in a sports shop can recommend a good trainer, it doesn't mean that they wear that trainer themselves but they certainly would know more about it than the purchaser because that is what they are trained to know.
Advisors have to pass exams to be able to transfer the knowledge that they give out, and if you are under the impression that you know of all the best and right places to be putting your money in order to get the most out of it then fine. My guess, based on your response, is that you probably don't. You don't have to be rich to know who deals in the best mortgage rates, you don't have to be rich to know which ISA is the best and which savings account will offer you the most on your savings.

[jpatokal]

Here's a puzzle for you. A private banker in Singapore makes S$200,000-500,000 in salary per year, plus performance bonuses that can easily double that. Now, if you tell him you have a very conservative risk profile and ask him where you should invest your money, is he going to recommend...

a) Singapore government securities, which are very safe for you and pay the bank zero commission
b) His bank's Durian 888 Wealth, Fortune and SPGs Fund, which screws you seven ways to a Sunday but pays him a nice hefty commission

Advice from others is good when they're genuinely neutral or when their interests are aligned with yours. "Financial advisors" are neither.

[kid2kid]

You are misinformed, IFA stands for Independent Financial advisor.
Independent of all other companies. I am not talking about bankers or fund managers in this instance but people who advise others on personal issues relating to money.

[Strong Eagle]

You are misinformed, IFA stands for Independent Financial advisor.
Independent of all other companies. I am not talking about bankers or fund managers in this instance but people who advise others on personal issues relating to money.

Question: What makes a financial advisor more brilliant than me? I assume you are one. Have you consistently beat the S&P 500 with no additional risk? If not, why should I choose to have my money managed by someone who is no better than an index fund?

In short, I'm well read, I avoid loaded funds, and I invest based upon what I know about Asia and the US. How are you going to make me more money than I can make for myself? Especially when you want a chunk of my assets for your fee.

Historical data speaks against financial advisors, independent or otherwise. They don't beat the market, and the fees charged insure that captial growth will be less.

[kid2kid]

I am not a financial advisor, my question was inqusitive only.
However, one thing I have learnt when dealing with my own IFA is that he doesn't charge fees (he works on commission) and has helped me make the best of my money over the last two years.
It should be noted that not everyone makes a fortune on the stock market and the run of the mill hard grafters amongst us maybe need a little advice from time to time.

[akidd]

You clearly do not have any holistic planners there then as I don't require commission. I am happy to proceed on fees, retainers or FUM if that makes clients more happy. I would gladly recommend high interest banking accounts if they were in best interest of client.
Also, its not just investments we would deal with!
And as an ex-trader I would be a god position to help with an investment or pension portfolio.
And IFA's are not fund managers, so when you comment about them not beating this index or that index, you should be pointing the fingers at the fund manager, alhough the adviser should be aware of managers performance, tenure etc.
And if you want to invest in some sexier things such as options and CFD's maybe we should meet when i'm there soon. There are some good straddles to be put on at the moment.

[Strong Eagle]

You clearly do not have any holistic planners there then as I don't require commission. I am happy to proceed on fees, retainers or FUM if that makes clients more happy. I would gladly recommend high interest banking accounts if they were in best interest of client.
Also, its not just investments we would deal with!
And as an ex-trader I would be a god position to help with an investment or pension portfolio.
And IFA's are not fund managers, so when you comment about them not beating this index or that index, you should be pointing the fingers at the fund manager, alhough the adviser should be aware of managers performance, tenure etc.
And if you want to invest in some sexier things such as options and CFD's maybe we should meet when i'm there soon. There are some good straddles to be put on at the moment.

Ahhh... options... like the foreign investment CD's offered everyday in the local newspapers? Too bad they don't tell you these are credit or interest swaps built on a very complicated model... great until the model proves to be sh*t.

[akidd]

Let me ask you then, did you ever trade for any investment banks??
Apart from your own dabblings, what experience do you have and or/ qualifications??
I see you're into personal growth..........not very good at keeping an open mind about anything financial though, and surely an open mind is key to personal development......i'll leave you with your own belief system about these things as I have better things to do than get in a discussion where you feel the need to use expletives.

Live with passion for excellence!

[Strong Eagle]

Let me ask you then, did you ever trade for any investment banks??
Apart from your own dabblings, what experience do you have and or/ qualifications??
I see you're into personal growth..........not very good at keeping an open mind about anything financial though, and surely an open mind is key to personal development......i'll leave you with your own belief system about these things as I have better things to do than get in a discussion where you feel the need to use expletives.

Live with passion for excellence!

I've got a wide open mind. And, I bet you money that within the next three years the combination of complex credit options and hedge funds is going to create one hell of a mess somewhere.

Options are fundamentally flawed. If you could predict the future, options would be unnecessary, yet all options models are based on predicting the future... often with disastrous consequences. Options traders say that they cover both sides of the future but it patently isn't so... at most options delay the results of market moves, resulting in huge movements and losses.

You sound like a lot of options peddlars... extoll the virtues without understanding the real underlying risk.

[kid2kid]

You don't get anywhere unless you are prepared to take risks.

[akidd]

i only trade options personally for me as it interests me and i believe it dilutes risk.

i have two words for you about options that should make you think about your rash comments.

WARREN BUFFET

the biggest options trader on the planet, ain't done too bad has he!

Good evening.

[petemul]

Mmm interesting conversation. The guy who defends advisors is not even an advisor but says he is interested in giving it a go and being independent free to advise on all areas of the market, has no experience of investment contracts, life policies, training etc… Ok it’s not rocket science but does he not sound a little naïve? That is the problem with the offshore market way too many guys like this. How would it sound if I got up tomorrow morning and decided I wanted to give brain surgery a go?

I have 17 years experience as an investment salesman. I don’t work for a big group just myself with a contract with an offshore provider. It gives me flexibility to negotiate commissions; I don’t have bosses to support, conventions, salesman of the month awards etc… Left all that in the early 90’s it revolted me clients were just ‘marks’.

Looking at the alternative markets make you either appreciate what you have or want to move. Right now I am inclined to stay in South America overlooking the Caribbean from my beachside apartment. Don’t like the idea of having to rent a bloody car by the hour in Singapore nor being associated with the likes of the ‘advisors’ the eagle describes. My interest was primarily due to the fact my wife had a very attractive job offer in Singapore but life there does not look all that attractive.

If you need assistance in investment by all means take advice. But, and there is a huge BUT here, DO NOT assume the advisor is correct in all he says. There is one golden rule:

Read and understand the investment contract, if you do not understand ALL of it- DO NOT SIGN!

The provider gives the ‘rabbit’ (you) a chance if you only read and understand the contract. How you set up the contract can make a world of difference to your retirement.

95% of the providers business comes through the investment ‘advisors’ so it is really the ‘advisors’ who are the clients of the provider and the provider looks after the interests of the ‘advisor’ or the ‘advisor’ uses another provider.

The beauty, as always, is in the small print.

[kid2kid]

If that was me that you are referring to then a) I am a woman, not a guy! and b) I don't want to become an advisor. I have a very successful career in investment banking and as such my husband is joining me in Singapore so that I can further my career. My husband is the advisor, successful, independently wealthy and my question was ' is there are market' in Singapore for advisors.
After the backwards and forwards, all I have is opinions on what people think of advisors and no answers to my question at all.

although debating the whys and why nots is all well and good, for an expat talking to expats, I am really surprised that there isn't at the very least some helpful responses from this group.

Can anyone out there just give me a straightforward response and some helpful advice???