Financial Planner – A Solution to Your Financial Confusions

Financial Advisor

Financial planner or advisor - did you know that both the roles work differently? Mostly these terms are used interchangeably. Technically, a financial planner is the one who helps you to set up financial plans to reach your financial long term and short-term goals or solve your financial problems while a financial advisor is the one who helps you to implement your plans by choosing the specific investments and insurance. As any person seeking financial advice would need help in its implementation as well, these terms are generally used interchangeably.

Now, the real question is: Does a person really need a financial planner? Well, the answer is relative. If you are well versed with the technique and tricks of managing the finances and have enough time to spare to focus on it, you do not need one. But, for the generalised crowd, who are not into finance and investment specifics, a financial planner is necessary to manage their savings and insurances. Also, if a person knows the how-tos of financing and investment, he or she may not have enough time that is needed for financial planning. A financial planner would do the groundwork and research for you and thus suggest the best investment plans suitable for you. So, after it is clearly established that one does need a financial planner, let me tell you how to choose the most suitable one for yourself:

Financial Planner
  • The first meeting should necessarily be in the office of the financial planner. It is a universal fact that quality financial planners would have several clients, enough to keep them busy. They also have a personal office and you should get a comfortable feel when you visit and talk to them. Go forward with a particular planner only if you get a comfortable vibe with him or her.
  • Ask about the qualifications and experience: Do not hesitate to enquire about the qualifications of a financial planner. A well-qualified planner would be more than willing to showcase his or her qualifications. Experience is also a must in the field of finance.
  • Double check: A legitimate financial planner must have a CFP licence. So, you can always check whether the licence is real or not by looking up the details on a government online portal.
  • Discuss your readiness for taking risks: Not all the clients have the same risk-taking tendency. Clearly tell the financial planner about your readiness to take risks so that he or she can suggest investment strategies based on that.
  • If the financial planner is too aggressive with the investment and is promising you a lot more than the rest of the planners did, you should probably walk away as a reliable financial planner would know about the risks involved in market investments and thus, would not guarantee high returns within a short period of time.
  • Friendly approach: This is a must for any financial planner you hire. It is obvious that you cannot work with a planner who does not have a friendly approach. The friendlier the person is, the more is his or her reliability. You need to have a good comfort level with the financial planner.
  • Fees: Well, while talking about money, fees are definitely important. Top notch and good quality financial planners charge a fee. Rarely any of them would be working on commissions. Make sure you pay the financial institute and not the person himself.
  • Make sure the financial planner is working independently: When I say independently, I mean make sure he or she is not affiliated with any bank or investing company. If a financial planner is not independent, his suggestions would be biased.

Finding the right financial planner is essential as this will help you become financially stable and help you secure your future and these above-mentioned points would ensure that you do.

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