WHEN BUYING ANY FINANCIAL PRODUCT, SCEPTICISM HAS TO BE YOUR BEST DEFENCE

Advisors may lack objectivity due to conflicts of interest from earning product commissions

- DHIRENDRA KUMAR

When I encounter someone who's been sold an overpriced insurance policy or a questionable mutual fund, I'm reminded of a simple truth: in financial services, the best way to get what you deserve is to assume the other party doesn't deserve your trust. After decades of watching banks, insurers, and investment firms, I've learned that while trust is valuable in most areas of life, it often doesn't serve you well when purchasing financial products.

The uncomfortable truth: start every financial transaction with distrust. While it goes against our instincts, it's the safest approach, given how many well-meaning savers lose money to flashy brochures and persuasive agents. Financial services are different because, unlike other purchases, it's your money going in and their money coming out. While buying a car benefits both you and the automaker, financial services are zero-sum. Every fee, commission, or bonus paid reduces your returns.