Is it time to make peace with commissioned financial advisors?

 

AS 2025 rolls by, one of my priorities is to come up with new slides that are more relevant to the marketing of my Early Retirement Masterclass, and one of my priorities is to see whether the messaging about commissioned financial advisors remains appropriate to modern audiences. 

There are objective reasons to do so on the first examination because FAs seem less pushy these days. The booths where agents look for potential clients are quieter, and I definitely do not see LED balloons being used to lure children anymore. Furthermore, we're not seeing FAs using FB groups like Seedly to get new businesses; the pushy ones that were around before the pandemic have mostly lost their licenses to practice. At the ground level, ERM previews used to attract a lot of FAs who would try to troll me when I revealed some harrowing truths about their profession, but I've not had trolls for quite a while. 

Maybe to help me, readers might wish to share their personal experiences - do they still get FAs asking for a date on their dating app? Are their events organizers FAs in disguise? These are problems folks were telling me in the past. 

So I tried to do further research in this issue.

So as it turns out, reported statistics do not paint a nice picture in the industry. According to FIDREC, on 2023/2024, claims have gone up 32% to 2,894. Life and composite insurers attracted 387 claims and license financial advisors and insurance brokers got 61 claims. 

To decide whether these numbers are big or small, just remember that CASE wants MAS to regulate financial influencers even though they are getting 5-6 complaints a year, which makes me wonder who is really pulling the strings in this issue? 

Next, I should use my legal training to come up with another objective approach is to simply let the reader or attendee decide and just draw my materials from court judgments, which is open to examination by the public. I've made a new slide to be presented on my new preview that sheds some wisdom for folks who want to know what can go wrong when they receive advise from the wrong party.

Let me share my teaser slide below.

In case folks are wonder, this case is now taught to Polytechnic students in Singapore. I have a special sort of interest in this case because,  according to what I read, I was surprised that my pupil master was instrumental in winning this case and crafting the arguments for the appellant. 

Which means that in some alternate universe where I survived my pupillage and decided to do pursue a legal career instead of taking up Dr. Wealth's suggestion to teach Early Retirement, I would have been a saviour of this group of Financial Advisors today instead of being a vocal critic. 

So is it time to make peace with commissioned financial advisors?

I think I need to tone down the rhetoric. How convincing the rhetoric is depends on how annoying the industry is and, save just few folks who lost their licenses have found themselves teaching other FAs, my case no longer rests on a solid foundation of dissatisfaction from the public. 

And it's not necessary anymore - even when I polled my teenage students and asked them who would invite them out for lunch for a catch up after graduation, they would laugh and say that it's highly likely to be a classmate who became an insurance salesman. My students are very streetwise.

Instead, I will use statistics from FIDREC and a wonderful selection of local court judgments to let the attendee decide what to conclude regarding the industry and whether there is a need to build up their own financial proficiency and not rely on others. 

For lasting peace, maybe you should focus on Gaza or the Ukraine for now.