Three questions to ask before you buy any financial product

Fsp Invest, 30 Sep. 2013

Tags: financial product, what to ask before buying a financial product, costs, low costs, low fees, questions to ask about financial products

The financial industry is like any other business – it wants to sell you stuff, as much stuff as possible. You, on the other hand, just want to save and invest enough money to provide for a decent retirement, and to meet your other goals. So before you commit to anything you need to make sure you’re making the best decision you can. Read on to uncover three questions to ask before you buy any financial product…

If you buy a TV and it stops working, you can take it back to the shop, John Stepek in MoneyWeek explains...

If you buy a financial product, the trouble is that you usually won’t know if it’s ‘working’ or not until years down the line.

By keeping costs down, you’ll benefit over the long-term

One of the most important things when buying financial products is that you need to keep your costs down. If you’re hoping to make a decent return on your money over the long run, this is where you should start.

In your quest for lower costs, you should look at passive investments over expensive active ones. If you take the risk of paying up for active management, you want evidence that the manager is actually adding some value.

So always remember, before you invest in anything, or buy any financial service, ask yourself:
  1. Does this product do what I want it to?
  2. Is it the cheapest way of getting what I want?
  3. If I am paying for something over and above the basic service, is it worth it?

These are the questions that good independent financial advisors should ask on the behalf of their customers. You should ask yourself the same ones.

So there you have it, three questions to ask before you buy any financial product.

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