[Estimated time to read: 4 minutes]
Researchers from New York’s Cornell University discovered that most Americans believe pretty much any lie, as long as it’s visually supported by a scientific looking chart.
They published the following findings in the journal the Public Understanding of Science:
“In a series of three experiments, researchers showed study participants different versions of a description of a cold medicine. Of the group that saw the description with an effectively useless chart, 97 percent believed the medicine was efficient, compared to 68 percent of the group that read only words, with no graphic.”
Conceivably therefore, if we want to make an American believe a lie all we have to do is this: -
Expat Jerry Jones from The Culture Blend blog explains why expats are so vulnerable to misinformation:
“In human years expats move from 5 to 16 in about two months.
Let me explain.
Expats are über inquisitive on the front end.
“What is that? How do you say this? What’s that smell? Why do they do that? What’s the history behind this? Who? What? When? Where? How? Why? Why? Why?”
Just like a 5 year old.
We embrace ignorance on a quest for answers.
BUT (and this is where it ALL falls apart): We think when we get an answer we understand it (you should read that sentence again). Soon we “know” (finger quotes) everything.
Just like a 16 year old.
When we have answers we stop asking questions.
This can be a fatal flaw for expats.
There is ALWAYS more to it.”
And just one more for good measure…
Free checklist: How to choose a financial adviser »
Stop the vicious circle of misinformation by redirecting anyone who believes the above lies here: -
However, because the commission that financial salespeople get isn't disclosed, expats choosing 'free' advice usually don't know how much they've paid.
The alternative is to choose a fee-based financial adviser whose fees are disclosed up front.
Structured Products and Unregulated Collective Investment Schemes are mostly rubbish; exposure to them often leaves you short changed.
Much better alternatives exist delivering improved returns, lower costs and less risk.
After all, they help expats make the most of their time abroad financially by committing them to saving a set amount each month, over a set term – right?
Wrong!
Certain savings plans, (also sold as offshore pensions, offshore savings plans and regular savings accounts for things like school fees planning), are easily misrepresented by financial salespeople.
In the UK, some of these types of plan were banned because they’re often associated with high-pressure sales techniques.
Many have opaque and expensive charging structures too, and pay those who sell them huge commissions.
Once sold, there is then little incentive for the salesperson to continue working with you, because they will have received their fat commission cheque already.
And just one more for good measure…
Just because an adviser:
That doesn’t mean they are a gifted investment adviser.
It doesn’t guarantee they are a qualified, licensed and regulated professional, who is legally required to adhere to a code of ethics either.
The terms ‘financial adviser’ or ‘IFA’ are used all too frequently offshore. The onus is on you to do your due diligence and check out their credentials.