|Rediff India Abroad Home | All the sections|
How to select a financial planner
Personalfn.com | May 14, 2008 09:48 IST
At Personalfn, we regularly meet clients (both existing and prospective) for their financial planning needs. Many of the prospective clients are unsatisfied with the advice/service rendered by their existing financial planners. These clients often turn out to be victims of mis-selling/poor advice. By the time they realise this, the damage is already done. We think it would help investors if they had a ready checklist of parameters that they can refer to before employing the services of a financial planner.
Why you need a financial planner?
Before we venture into how to select a financial planner, let us first understand, why you need a financial planner in the first place.
The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives. Post-investment, he monitors your investments and ensures that you are on course to achieve your investment objectives. If necessary, he suggests changes to your financial plan so that you are able to achieve your investment objectives as planned.
Given the critical inputs provided by the financial planner in helping you achieve your financial goals, it is important that you select the right financial planner. We outline a simple 6-step strategy that you need to consider before employing the services of a financial planner.
With the increasing list of investment avenues on offer, selecting the one that suits you the best is becoming a challenge. To that end, competence and skill set are the basic criteria that investors should look for in an investment planner.
Financial planners should be competent enough to provide you with a solution that can help you in achieving various objectives such as retirement and child's marriage/education. Furthermore, the recommendations offered by your financial planner should be backed by solid research.
Albeit evaluating the investment planner on this parameter may not be possible initially, you should be able to do so over a period of time (alternatively, references can prove useful in evaluating financial planers on this parameter). Providing objective and unbiased advice, which is in your interest (i.e. client's interest), should be the planner's number one priority.
If the financial planner is preoccupied with some important clients or if he re-locates, it leaves you in a soup because your financial plan is in limbo. It is best to go with a financial planning initiative that is run by teams (as opposed to one-man setups) to ensure continuity of your financial plan.Your family's future depends on this. Read now
More Personal Finance