So, there you are, you have the intent to build a secure financial future, you have even contracted a qualified financial planner to help you with this. Now, how does one derive the maximum value from a financial planner.
Be clear about the relationship.
Using a financial planner is like using a doctor. Now, don’t treat the financial planner as a doctor, but treat your money as you do your health. The planner will take on the responsibility of providing advice that is tailor made and suitable for you. Your responsibility, in the broadest terms is the 4 points mentioned below.
Provide good data.
Ensure that you have provided great data to the planner so he/she gets an accurate snapshot and a context of your financial situation. A good planner would himself ask you leading questions to get that understanding too.
Being coachable means you’re leaving room for the possibility that there’s something you haven’t learned yet that could make you even better. It also means you are ready to do what it takes to change, transform, improve or excel. It means that you are a super-enthusiastic go-getter type of person.
Be prepared for feedback.
The good planner will be critical of at least a few things that you do with your money. Prepare yourself to understand the rationale behind the critique and change accordingly.
Financial Planning is a continuous lifelong exercise. Be proactive and ensure periodic review of your plan and portfolio.
Finally, this is a relationship of give and take. Endeavor to build a win-win relationship. The professional would perform his duties and responsibilities, bit do not forget yours either.
Note: Always deal with a SEBI Registered Investment Adviser
What is Investment Advise?
Investment advise means advise relating to investing, purchasing, selling or otherwise dealing in securities or investment products and advice on investment portfolio containing securities or investment products.
What is Financial Planning?
Financial Planning is defined as an analysis of current financial situation, identification of financial goals, developing and recommending financial strategies to realize such goals.
Where to find a Registered Investment Adviser?
The complete list of registered investment advisers is available on the SEBI website
Why should you deal with SEBI Registered Investment Advisor?
It is always recommended to deal with SEBI registered Advisor as they are qualified, follow the process laid by the regulators and there is grievance redressal mechanism provided by SEBI while dealing with such advisers.