Did you see today's headlines on the Straits Times papers?
It showed a picture of an elderly lady drying her tears with her hanky. She has just lost her retirement savings because of the economic downturn. But MORE so because she mis-trusted a Bank Financial Planner @ DBS. She had wanted a Fixed Deposite account but ended up with an investment deal instead. How does that happen?
Elderly folks are the easiest targets for these Financial Planners. Elderly folks will have SOME savings, they are usually not english-literate, they listen to some big numbers and get excited by it. They do not know how to ask questions about service fees, admin charges etc because they assume that everything would be told to them. They will trust the lady behind the counter because DBS feels like its government related, sure can trust. They cant really tell the difference between FD & investment products because the FP will usually emphasized that they are BASICALLY the same because you put $ in there, they take care of it for you.... at this explanation, anyone would also think that FD & investment are the same!
That's how many elderly folks get "conned" into joining these investment funds instead of sticking to their fixed deposits.
Why I am so aware? Because, this was exactly what happened to my mum!
I was with her at the bank, i walked away to look at some brochures before sitting down next to her at the counter, 5mins I think was all that FP took to convince my mum that her FD has a lousy rate, she's better off investing that away. Upon hearing the better (non-guaranteed - this they dun say, they just tell you the forecasted interest rates at 8% or 10%) returns, my mum's mouth was drooling already.
I was shocked that it was so easy to convince my mum, (she did claim that she's a very alert person.... but I think cannot take pressure still lah). I asked a few questions like service charges? Admin charges? Is the principal sum guaranteed etc and the lady fumbled.
Thankfully, my mum saw the true picture and did not get persuaded into. All because there was someone else who helped to be the bystander to read the information which are all printed in english in fine prints and ask more questions.
I am not saying that I'm very hero save my mum some heartache today, rather, I would like to warn everyone out there, please be on the alert when your old folks go to the bank, let them know that they can bring home the investment plans to share with you, let the family help to decide if it was a good deal to take part in or not. If they are afraid to let their own children know how much life long savings they have .... they should really go find a good friend who is educated in english, a neutral person and accompany them to the bank.
Let your old folks at home know the tactics that the bank FP uses to get people to invest their hard earned money with them. So that they can be more alert, if need be, remind them like mad, even if you are called long-winded, its worth it, just look at the old couple on the front page of today's ST.
Labels: DBS, elderly, financial crisis, Singapore
