3 minute read
Greater China - IDA Address
IARFC International News Greater China
Trustee Chair, H. Stephen Bailey, Ph.D., MRFC® Addressing the 2021 IDA Annual Conference
I’m honored to be addressing the attendees of the 2021 International Dragon Awards. While we are here together (both virtually and in person), I would like to give you my thoughts on pursuing a professional designation.
I realize that many financial professionals feel they are doing fine without a designation behind their name. However, if you look at a designation from the viewpoint “THAT IT IS NOT ABOUT WHAT YOU THINK”, it might take on more significance. In reality, IT IS WHAT OTHERS THINK about you and your qualifications.
Designations come with requirements. The Registered Financial Consultant or RFC® designation documents your experience, education, licensing, integrity, and commitment to continuing education.
The RFC designation says to the public…“OUR MEMBERS have met a standard set of criteria“. If people do not know you, those standard requirements backed by the IARFC give you CREDIBILITY! As the Association:
WE hold you accountable WE validate your ethical behavior. WE provide a continuing source of education and networking.
This is a powerful tool when marketing yourself to potential clients. It sends a STRONG MESSAGE in this competitive market. We answer the question “Why should I trust you?” in the eyes of the consumer and in clients.
For those of you who are Registered Financial Consultants, or who are considering the designation, we believe elevating your professionalism is a DEFINITE YES! It is vital you put yourself forward. AND… the IARFC is part of an International Network. So I ask, why wouldn’t you want to be part of our Association?
My most important piece of advice to leave you with.
We are in the people business. Our commitment is service to others and making a difference in their financial legacy. To that end, there is nothing more meaningful than your reputation, your ethical behavior, and gaining trust...NOTHING!
Smart Guide to Fund Investment
Rule #1 Choose Low Cost Funds In certain instance, the sale charge could mean the difference between good returns and poor returns. Always go for low cost funds wherever possible. In fact, there are a few no load funds available that you can choose. The general rule is the lower the cost, the better the performance returns.
Rule #2 Consider the Cost of Advice UNT trust agents, life insurance agents, as well as financial consultants, can provide good advice on your investments. However, do consider the cost of advice. Check out the qualifications and experience of the financial consultant before you make a decision. If you are new to fund selection, it is better to go through a financial consultant.
Rule #3 Do Not Over Depend on Past Fund Performance Selection of a particular fund should be an interaction between your risk profile and investment objectives. Do not just depend on past fund performances as your sole criteria in fund selection.
Rule #4 Don’t Own Too Many Funds Owning of many funds would inevitably lead to over diversification and thus may lead to under performance. Anything more than four types of funds is definitely too many.
Rule #5 Awareness of Asset Size Usually when a fund asset size gets too big, it may be difficult to achieve an optimum return to the investors. However, be careful with a fund asset size that is too small. In Malaysia, our fund asset size can be quite small thus the costs can be quite high.
Rule #6 Use Past Performance to Determine Consistency Past performance can be a good guide to determine the consistency of a fund. Go for those funds that have at least six years in the top two quartile and a maximum of only one year in the bottom two quartile.
Rule #7 Buy Your Fund and Hold It Fund investment is meant for the medium to long-term time horizon. Regularly trading can result in losses because of costs involved. Buy your fund and hold for a reasonable timeframe.
Dr. Jeffrey Chiew, RFC® Asia Chairman, Kuala Lumpur, Malaysia
