Many people do not differentiate between value and price. Price is what you pay and value is what you get. For financial services, one must determine the value of an advice otherwise any price you pay (whether in fees or commissions) will be exorbitant. From my experience, most Singaporeans do not understand this and as a result make two serious mistakes: either (1) Paying for worthless advice through gigantic commissions or (2) penalizing professional financial services by not paying for it despite their capability of creating high value. Consistently rewarding worthless financial advice and penalizing valued advice only degenerate the industry further. From empirical observation, majority of Singaporeans have never experience valued advice but only worthless one. I wrote this article - which first appeared in INVEST Oct/Nov 2009 issue – that examines the difference between value and price. You can download this article HERE
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