Financial gaslighting by financial advisors in Philippines
INVESTING ON THE GO - Iggy Go (The Freeman) - August 11, 2020 - 12:00am

Is Financial Gaslighting a thing? Last 2016, I talked about financial guilt tripping and financial abuse in Philippines. Recently, with the allegations of corruption in PhilHealth, some people in my network are experiencing to some extent, financial guilt-tripping and gaslighting.

Some people have started to call out these financial advisors (or insurance agents) for what they are doing. Using the PhilHealth issue to gaslight people who have no private insurance. Even I have financial advisors who are my friends who seem to be doing the same thing and unable to ‘read the room’ or situation.

Heck, this whole situation has reminded me of a post I also made years ago talking about how to identify if a person selling you a financial product is a financial salesperson/agent or a true financial planner or advisor. If you are for financial education and literacy, then don’t talk about only the positive side, include the bad side as well.

Understanding these terms

Guilt trips are a form of verbal or nonverbal communication in which a guilt inducer tries to induce guilty feelings in another person, in an effort to control behavior. As such, financial guilt trips are a clear form of psychological manipulation and/or coercion.

Gaslighting—a  type  of  psychological and/or sociological  abuse  aimed  at  making  victims  seem  or  feel  “crazy,”  creating  a  “surreal”  interpersonal  environment. Gaslighting is consequential when perpetrators mobilize gender-based stereotypes and structural and institutional inequalities against victims to manipulate their realities.

The terms above are a part of financial abuse which many people don’t seem to know or talk about. Financial Abuse is a tactic to gain power and control which may be subtle or not, that limits the victim’s access to assets or even drives them into debt. Financial abuse is much harder recognize. This is due to beliefs, traditions that is deeply embedded in our culture.

The impact is almost everywhere

If you think you are exempted, think again. This can happen in interpersonal relationships even amongst life partners and family members (Breadwinners, spouses, OFWs, Senior Citizens).

In the investment world, the overarching priority for the vast majority of money managers is to gather assets and revenues and only peripherally to provide quality performance for investors. Gaslighting is routinely used to try to obscure those priorities and to convince investors that, despite the reality of what they see, investing in product X or with firm y is a great idea.

Some if not most financial products or even seminars are currently presented or designed to appeal to your sense of obligation – and guilt. Sure you can call it a ‘sales tactic’ but if you really want to promote financial literacy and education then, please do better.

What do you think about how some salespersons who leverage on the failures of PhilHealth to sell their own agenda?

Surely there is a BETTER WAY of doing things or educating people on personal finance than these so-called tactics?

And if you are a ‘Financial Advisor’, please take this into consideration instead of perceiving it as an attack. You are there to enhance people's financial life, not burden them unnecessarily. Also, there is no best financial product, only the most suitable one. And all products have a purpose, as they say diversification is key.

Lastly, if you don’t have private health insurance, you are not crazy my friends. If you want to get your financial house in order, then do consider looking for a fee-only financial planner.

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Iggy Go is a Content Creator>>www.youtube.com/iggygo

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