Financial Advisors

Beware of Greeks bearing gifts

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We’ve written about this before (in fact, it was the first post on the blog, and the reason RetireJapan was born).
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I received a very pleasant message from someone the other day asking about writing a guest post for the blog or posting in the forum. They offered to provide people with a free overview of their UK pension situation, followed by some tailored advice. This seemed interesting but also a bit too good to be true.

We exchanged emails and it turned out this person worked at one of the investment firms that target expats. They were completely pleasant, professional, and even self-deprecating throughout, so I am not going to write their name or the company they work for in this post.

However, this does illustrate very well how no-fee advisors get the initial meeting with potential customers (marks?). They offer to give you some advice for free, then get your confidence, then sell you some horrendous financial product.

Follow the money. If someone is providing a service for free, you need to ask why. They are probably getting paid somehow, and if you don’t know how much the fee is there is a good chance that you wouldn’t like it 😉

Be careful out there! Remember you can always post in the RetireJapan Forum to see what other people have to say about a potential investment before making it. The reason this site and community exists is to help us all make better decisions going forward.

How about you? Any stories to tell? What investments do you regret or are happy to have passed on?

17 Responses

    1. Andrew Hallam says it quite well in the link you provided.
      I think one good thing that the internet has done is to allow people to share stories and experiences regarding investments like those referenced. Before that (for the advisors at least), it was probably like shooting fish in a barrel.

  2. Here is a link to a financial company that used to be in Tokyo.
    These guys took things a bit futher in that they were selling a fund to people in Japan, that they knew to be failing… They continued to sell this due to the high commissions they were receiving…
    http://www.andrew-drummond.com/2014/09/lm-appalling-offshore-stitch-up-of.html
    Some people lost a lot of money due to this: see below
    http://www.scmp.com/magazines/post-magazine/article/1558078/when-investment-fund-goes-bad
    Friends Provident hosted this fund at the time… one should avoid this company anyway as mentioned by Andrew Hallam, due to their high fees and exit penalties… Unfortunately I lost money myself with these people…

    1. Sorry to hear that! It’s very easy to get taken for a ride if you don’t have a good source of advice. Hopefully more people will find this site and avoid similar experiences in the future…

  3. I had a meeting with a flag themed company in Tokyo. They were professional but did all the things I was warned about in the books on personal finance I had read. They weren’t out to scam me but I don’t think their product would have been a good choice. In the end, I made my own plan and I pay a very nice Japanese gentleman to help me with the paperwork. He’s a financial advisor who finds answers to questions I have and gives advice. I pay him a flat fee for a consultation

    2. Hi John,
      I’ve been looking for someone like that, because I have a lot of “advanced” questions about investment, often specific to Japan.
      Would it be possible for you to share a contact info of yhat gentleman?
      If yes, i will leave my email here.

      1. Hi ori
        We are absolutly not recommending these people. They are not registered in Japan, they do not have the necessary licenses to operate in Japan, and they do not have your best interests at heart.
        In fact, this website was created because I was so disgusted at how they operate.
        If you need financial advice, I recommend asking questions in the RJ forum or finding an independent financial planner: http://www.retirejapan.info/blog/talking-to-a-financial-planner-in-japan

  4. Hi Ben,
    I was asking John about the advisor he found, who provides a qualified advice for a flat fee.
    I’ve learned a lot about investing and manage my portfolio on my own, and on this stage I have fairly advanced questions which I don’t think the people on the forum are qualified to answer (as well as I’m not ready to disclose to much about my financial affairs publicly), especially when it comes to things specific Japan.
    I’ve met with few IFA found via web, and they were all crap, so I’m looking for someone with good recommendations.

    1. Hi Ori
      My apologies! I read that thread too quickly. I would be happy to pass on your email address to John if he’s willing to introduce you.

    2. Hi Ori
      My apologies! I read that thread too quickly. I would be happy to pass on your email address to John if he’s willing to introduce you.