Financial Planning is not rocket science, on the contrary it is just plain and simple common sense – where you sit down and take stock of your circumstances. Where do you want to be next year; 5 years from now; 10 years from now; and 20-30 years from now? Hence, what is it that
So if it isn’t rocket science, why do I need a financial planner – why not do this yourself?
Well, the answer to this is you can.
In fact you are your own best planner, provided you have the time every day to monitor your portfolios, track the markets, keep a close watch on the economy, political scenario, world indices, see what are the new options coming in almost every day AND do your regular job. Not only that – you need to have the knowledge and training to understand markets and economies and interpret and react to its changes appropriately and timely.
Markets and economies world over are becoming more and more global. It is not enough to know just what is happening in your own economy or what policy changes by your own government are likely. One has to be aware of market happenings, political scenarios and events in lands far far away, since something happening there can have major consequences on investments here. There are a myriad of investments and options opening up for investors from across different asset classes, your country and beyond.
Hence, the function of a financial planner is dual. First, to have an understanding of the economy and markets, such that to be able to correctly interpret their movements and the effect thereof. Second, to offer personalized and customized solutions to you, after understanding and assessing your unique situation and your goals, both long term and short term.
He should be able to do so keeping your interest foremost and in fact push you to take that much needed insurance cover and recommend only those products which are suitable for your needs, appetite and profile.
The first is a function of qualifications, experience and training while the second of personal integrity and ethics. Look for these qualities when you look at enlisting the help of a financial planner and you will be in safe and honest hands. You will get where you want to be and realize your desired goals.
Lastly, the onus for financial planning to work for you lies not only on the financial planner, but also on YOU as a client – to make your voice heard, to be clear on what your goals are, prioritize them and follow through with your planner what the changes in needs and circumstances are in your life from time to time.
For InvestmentYogi by Uday Dhoot, Certified Financial Planner.