A Guide To Choose A Financial Planner At Any Age

Financial planners help their clients on how best to spend money, save, invest, grow their money, help to achieve their financial goals and financial freedom in life. They can guide you to tackle a specific financial goal such as buying a house, making a retirement year strategy, or giving you a macro view of your money and the interplay of your various assets. Some specialize in retirement planning or estate planning, while others consult on a range of financial matters.

A financial plan can get you on a solid path towards your goals. But what if you don’t have the time. You don’t have the inclination or expertise to create and implement a plan on your own? As per your friend’s advice or any online article or online platform, you may think and start a Rs. 1000/- SIP (Systematic Investment Plan) in any mutual fund. Yes, you can do it quickly. Remember, starting investing in an investment scheme is not a big thing, but maintaining the consistency of invest for the long run during the volatile times of the equity market is the most crucial money habit. You also have to manage your money behavior during this period. But what about your tax issues, tax planning along with other financial goals in the future, or changes in your lifestyle, changes in your income or job loss, changes in your life stages, and different situations like Covid-19. Much more unexpected situations will come in your entire life journey. Yes, you consider hiring a financial planner to assist you.

Right Financial Planner For You.  

You are choosing a Financial Planner. Yes, It’s up to you to shop carefully for a financial planner you can trust. But how do you select the right financial planner for you?

Many planners offer an initial meeting at no charge, so you can get acquainted and determine if the planner is the right fit for your needs. At the interview, ask the following questions and listen if the planner answers them forthrightly and focuses on your goals and needs.

  • How long has the financial planner been in this profession? What types of clients does she/he work with? How are their situations similar to yours?
  • Does this person have experience in multiple areas like insurance, taxes, investments, retirement planning, estate planning?
  • How many years of professional experience have they had?
  • Does this person have experience in preparing a ‘Comprehensive Financial Plan’? Does this person have experience in designing a Modular Financial Plan‘?
  • Is she/he providing a written financial plan or oral financial plan?
  •  What kinds of professional qualifications/credentials does he or she have? What about professional designations or certifications? Is he a CERTIFIED FINANCIAL PLANNER or a CHARTERED WEALTH MANAGER?
  • Do they use Financial Planning Process? Ask if the planner has clients similar to you.
  • What is their educational background? What did they do before starting this financial planning profession?
  • What services are they offer? Does the planner provide financial advice, or do they sell financial schemes as well?
  • What is the philosophy when it comes to investing? Is there an investment process?
  • Will the financial planner implement the mutually agreed recommendations as per the plan or refer you to other professionals (insurance specialist, tax planner, lawyer)?
  • How many clients does the planner have? How many employees? Who else will work with you and your loved one?
  • What is the way the planner collects fees? By the hour? A flat fee for services? On commission on schemes you purchased through them? What is his price for preparing a ‘Comprehensive Financial Plan’?
  • You ask for a cost estimate based on your loved one’s situation and the required documents. How long will the process take for initial plan preparation and future activities?
  • Would you be able to put the plan into effect without retaining the financial planner’s ongoing services in the future?
  • How does the financial planner keep up with changes in income tax laws and impact your financial plan?
  • Is this financial planner “tied” to specific groups or financial products?
  • Ask for a sample ‘Comprehensive Financial Plan’ or ‘Modular Financial Plan’ to see it yourself.

“Your life does not get better by chance, it gets better by change.” ~Jim Rohn

You want a financial planner who’ll take the time to focus on your concerns and is interested in growing with you in the long run. At the core of a financial planner-client relationship is TRUST. A qualified financial planner must earn your trust by proving competence, providing full disclosure, and putting your interests first.

I am a CERTIFIED FINANCIAL PLANNERCM, CHARTERED WEALTH MANAGER®. For the moment, I have shared my experience growing up with you because it had a tremendous impact on how I do what I do. If you have a question about your financial situation, please connect with me. I’d be delighted to try to be of service.

Don’t miss any future posts; please subscribe via email.

’42 Years Sensex Return-15.92% Per Year’ Read it.

Spread the love

Leave A Reply