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Are you seeking professional advice before investing? Find out if you should do it

A professional financial advisor helps investors navigate their finances, all the while keeping their circumstances and life goals in mind.

Are you seeking professional advice before investing? Find out if you should do it
A professional financial advisor helps investors navigate their finances, all the while keeping their circumstances and life goals in mind.

Many investors believe that they don’t need professional advice to handle their finances, that’s where most of them make a mistake. Seeking the help of a financial planner to take care of their finances depends on the investor’s level of awareness, the complexity of his/her finances also if he/she has the right temperament for it.

Financial goals such as buying a house, international holiday, a child’s higher education or retirement planning, need proper guidance and financial planning. Are you sure the products that you have chosen to invest your money in suitable and help you reach your goal? People also fear of having saved too little for the future or saving too much, without properly living their present lifestyle. A professional financial advisor helps investors navigate their finances, all the while keeping their circumstances and life goals in mind.

However, choosing the right professional financial planner is also not as simple. There are various types of financial advisors in the market, for instance, there are independent financial advisors, financial planners, agents, and distributors, and they vary depending on their type of services and charges. According to a recent survey, DSP Winvestor Pulse 2019, 47 per cent women, and 50 per cent men see the qualification and education level of a financial advisor as their top parameter while choosing a financial advisor.

If you are also yet to decide, find out if you need a planner for getting your finances on track.

Do you need a planner?
At the start of your career, with no dependents or liabilities, one may not need a financial planner. At that stage, just a little help with the basics and putting in place a few basic things sort things out. If you are at the start of your career, and maybe need a little guidance to start savings you might not need a proffessional. But in the middle of your career, when you are dealing with long-term goals, that is when u need to seek the help of a professional, to take a proper look at your income, assets, and liabilities. Experts suggest, after a certain age, mostly in your mid-career, is when you should seek the help of an advisor. You might think you don’t need it and feel fine with your finances but getting help will ensure that you are on the right path to meet your future expenses.
Similarly, when you have achieved most of your financial goals generally after retirement, and just need to get regular income and protect your assets, small professional involvement should be enough for you.

Need for a planner
Need for a financial advisor is not only to maximize returns. It is to get the best of investments all the while avoiding mistakes, wherein you can lose all your hard-earned money. Even investment of a small amount done right can make a huge difference when compared to making the same investment in unsuitable products.
Also, with the help of a financial advisor, you get to know the true nature of a product and their suitability. For instance, industry experts say many people approach financial advisors with products that don’t suit their life stage, because of which people are losing a huge amount of money. Financial planners build up a portfolio appropriate for you suiting your lifestyle, your life stage and your goal, which might also reduce the risk in your portfolio, and loosen up your present financial life.

Choosing a planner
It’s not easy to give charge of all your savings to someone else. Before narrowing down on financial advisors find about the skills of a planner, and do some research online. It is also important to understand the advisor’s way of functioning. Also, the planner and the investor has to be on the same page with the investor’s finances, and each other has to know what the planner does and what the client wants.

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First published on: 03-07-2019 at 17:37 IST