According to the report, Axa announces closure of Ipac in Hong Kong, Singapore, Ipac Singapore is closing down. This is significant because Ipac Singapore offers fee-based financial planning like me. With their closure, it means there are now less fee-based planners. I am unsure whether is this good or bad news. It is good news because I have less competition. It is bad because it indicates that fee-based financial planning is not a viable business model.
Ipac Singapore's closure also throws out the age-old fallacy that only the rich are willing to pay fees. Most of my main competitors only target high networth. Ipac is one of those who target the rich. How long these people need to realised that they are targeting the wrong crowd! The average Singaporeans have no objection in paying large commissions as long as it is hidden from them. This means that the average Singaporeans can pay fees. The issue is psychological one, not an affordability problem.
For me, most of my clients are the average Joe. They are typically the sandwich generation which they are neither poor but neither rich enough.
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