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  1. Financial planning: How to choose a good advisor

Financial planning: How to choose a good advisor

While appointing a financial advisor, look at their credentials and gather information about their services from their past clients.

By: | Published: July 7, 2016 5:26 PM
Financial planning: How to choose a good advisor Sensible financial planning is required to raise your standard of living and provide a comfortable lifestyle for your loved ones. (Photo: PTI)

Every year, with the onset of a new financial cycle, people deal with the stress of putting money away for investment. Advice pours in from all directions and relations. You may feel the decision taken by you was the best, but when you finally sit down with your calculator and the yearly financial statement, how often do you find that your money hasn’t grown the way you had hoped?

Money management starts from your daily expenses, savings, budgeting, life insurances, loan EMIs, health policies and lots more. Sensible financial planning is required to raise your standard of living and provide a comfortable lifestyle for your loved ones. It is not always necessary that you will receive high profits from your investments in the very first year; but in the long term, you will be able to enjoy the fruits of your money tree.

Some basic ground rules of managing your money are to start investing early and wisely, protect your assets and make them grow, plan for retirement, etc. If your mind is still not at ease, then seek the help of financial advisers – money experts who will help you identify the correct path to savings.

Many people do not prefer to pay a hefty amount for financial advisers as they feel money is managed well by individuals as per their instincts. But if you think professional help will grow your fortunes, then seeking help from a financier or money expert will do you good in the long run.

The market is a mixture of professional financial planners as well as people with nefarious schemes. Do some homework and select a professional with ample experience, qualification, and good market feedback. An adviser of good repute will be heavy on your pocket, but their advice will help you select the right kind of investment and help you manage your assets and, above all, grow your money.

Your financial advisor should be able to understand your complete financial status, mutual fund investments, taxation details, insurance policies, career planning, and current cash flow of your earnings, debt management, and a lot more.

A true financier is one who will show you a clear picture of your financial status. Their main aim will be to help you achieve your financial goal and guide you on when and what policy or stocks you should buy and sell as per the market trend.

A good advisor will always suggest options based on your requirements and financial status, and further help you to achieve your goals. Advisors can also help you plan your retirement and new business ventures. You can also seek their help for new investments, like buying a property or shaping your child’s career plans, apart from the regular financial aspects like insurance policies, tax returns or tax planning.

If your financier fulfils the discussed responsibilities, then you are in great hands and so is your money.

Engaging a financier is similar to visiting a doctor whose advice you seek as you think that person has ample knowledge about the subject. You will seek your doctor’s advice for any major surgery instead of walking into any hospital and getting the surgery done. Likewise, why risk your money without any knowledge or idea of your gain or loss?

A primary concern that puts off most people from engaging a financier is that they think financial advisers demand high fees. You need to consider the total cost of financial services and not what you pay to the financier directly.

While appointing a financial advisor, look at their credentials and gather information about their services from their past clients. Discuss the fees that they will be charging and also ask if they will receive commissions from insurance companies for policies that they suggest. Based on that you can decide on the fees and appoint their services.

You need to do a little bit of research and not appear totally vague or confused while discussing with your financier. Keep yourself updated with current market trends and keep track of what your financier suggests. Appoint a licensed financial professional who can guide you to safeguard your future and your assets.

At the end of the day, it is your money plant that you need to look after. Your financier will act like a gardener who will suggest what minerals and how much water to put in to save and grow the plant so that you can cherish the bounty of its fruits.

The author is CEO BankBazaar.com

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