In 2015, I interacted with one of my inquiries for the financial planning service the other day. It was a summer day at Bhubaneswar. At the same time, I have just completed four years as a CFP Professional practitioner.
Yes, that time was the most struggling period for me to establish myself as a CFP Professional, the written financial plan concept, and creating the natural ‘Wow! Experience” for all the clients in Bhubaneswar and Odisha.
Mr. Mukesh Sharma (all names changed), his wife, Neha, and his son, Anmol, traveled around 350 kilometers (from western Odisha) to do some other work at Bhubaneswar and met me and discussed a written financial plan benefits. It was not challenging for me to build a relationship because one of my old clients referred my name and services. Yes, a highly educated couple and the husband worked with a reputed steel company in Odisha. They have collected all information from my old client about the process we follow, the six-step process (FPSBI’s Financial Planning Process).
Any change invites resistance. Changes are hard. There, I said it. I can only speak for your benefits of making a written financial plan by a trusted professional. But as a professional, I do what I do, and I am who I am because I love to do actual financial planning for people, and I love to help. Obviously, a written financial plan is a new concept for them and spending a few hours discussing. They had a lot of questions related to this service during the initial discussion, and I have answered all the questions and benefits of a written financial plan. We had spent around two hours gathering data related to their financial situation and goal setting. It’s related to risk appetite, age, income, expenses, assets, liabilities, money relationship, debt issues, money mistakes, financial goals, and a happy-money zone for them.
Mr. Mukesh Sharma has given all documents like the last three salary slips, EPF statements, Income Tax files, life insurance policies, fixed deposits, etc. While the initial discussion time, I explained to them that ‘The Better the information – The better the recommendation.” They also believed in this concept and submitted all the documents for the financial plan. Mr. Mukash has provided all the original documents, including the life insurance policy bonds and other documents I have returned at the time of plan submission.
It took me a minimum of 25 hours to prepare the ‘Comprehensive Financial Plan,” which is 60 pages written document. Yes, it was a customized financial plan for Mr. Mukesh and his family.
I traveled a one-night train journey to his place of work for the plan submission and 3 hours discussion on the written plan. I also had some work in his city, so I planned. We had a pre-fixed appointment for the meeting at his residence. At the same time, we discussed the written financial plan, relationship with their own money, income-expenditure analysis, risk profile, debt management, strategy, recommendations, etc. The discussion moved in the right direction, focusing on the plan.
We have discussed some crucial aspects like Anmol’s higher education funding, Anmol’s marriage funding, security corpus building, vacations funding, international vacation funding, money mistakes, investment, etc.
We discussed the future strategy and investments in mutual funds and doubts about the market movement, fund manager’s style, experience, etc. Yes, the plan discussion moved towards the retirement plan’s last phase of the meeting.
Mrs. Neha offered herbal tea and snacks for refreshment.
It was the need of the hour. Of course, we all discussed the last 2 hours about their written financial plan.
Drinking herbal tea and discussing written financial plans with clients has its charms. Its benefits went far beyond refreshment when discussing the most crucial financial goal.
Retirement funding! Golden age funding!
Retirement Planning! Yes, Joyful Retirement.
They are building a nest egg!
Why do they need to set a retirement goal today?
It is the most critical financial goal for all Indians. Retirement planning decisions you make now can go a long way to ensure that you enjoy your golden years.
We were on page 48 of Comprehensive Financial Plan – retirement planning. As per his resources provided for the retirement plan (one endowment policy for retirement as he thought it), I told them that you had taken 32 endowment life insurance policies for retirement planning.
He was shocked and asked me, “What? What are you saying, Mr. Pradhan?”
I observed the body language and the client’s reaction to this new and wrong action in the past. Yes, he couldn’t believe it.
He repeated it, “You may be wrong, Mr. Pradhan, please recheck it.”
I replied, “Yes, Mr. Mukesh, you have taken 32 endowment life insurance policies for your retirement. But you have given it to me as one policy. It’s 32 policies.”
He did not believe it initially. I showed the list and other details of the policy I had analyzed. I have discussed the future pros and cons of his financial goals for taking 32 endowment life insurance policies. Not to discuss this point, he has implemented the plan as per the recommendations and still moving as per the plan with periodic review.
Instantly, he lost faith in the advisor who had sold 32 endowment life insurance policies to him.
Here, we are not discussing the financial consequence after taking 32 policies. What is good about it or wrong with it? What is the logic behind it? We are not debating on this point.
The most critical point is disclosing all information before the client takes an informative decision. It’s their right to know about it. A financial advisor should help and provide all scheme or product information for better decision-making.
The wrong decision affects one’s financial life badly. Your financial success depends on your decision to choose a financial planner at present. If your decision is faulty, you have to repent because it ruins the countless impact on all financial goals, impact cashflows, and happy moments of life. Your failure to choose a trusted financial advisor creates disappointment, and you forget life’s essence and cannot get the real benefit of saving and investment.
“Choose your actions wisely.” ~David Levithan, American Author
Trusted Financial Advisor! Honesty, rather than rhetoric, is the best policy – it’s how the trusted advisor is born.
Financial Planners are like doctors. Choose the right financial planner who will manage your financial health by understanding your goals and constraints. Everyone needs them. You reach out to doctors for health check-ups. Chartered accountants file your tax returns. You consult with lawyers for legal matters. Why don’t you find financial planners for managing the most critical aspect of your life – your finances?
Financial health is of utmost importance. Choose a trusted financial advisor who will take care of it with you. Moving in financial life is full of choices, So choose wisely. Choose your financial planner wisely because it significantly influences who you become in your economic life.
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.
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