What can an investment advisor do for you by Sanjit Bakshi

As India is developing rapidly to become a developed country, every citizen must participate in this development. While there is a lot of information on the Internet and in print media, when investing money, people get confused because of all the information available on the Internet.

A financial planner is a professional who helps you organize your finances and projects the results of your savings and investments so that you can see how well prepared you are for retirement. They also help you make decisions with your money that will help you achieve your financial goals in the most efficient way.

The terms “financial planner” and “financial adviser” often mean the same thing, but certainly not all financial planners or financial advisers are the same.2 The level of education, training and experience of a professional will make a big difference in quality. of the advice you receive. Some people do their own financial planning and others seek professional help. An experienced financial planner can generally help improve the quality of the financial decisions you make.

If you are considering professional help, you should know what to expect from a good financial planner and how to differentiate between a salesperson and someone who offers fiduciary financial planning advice and has valid financial records or designations. Hiring the right career planner starts with understanding what financial planning is and what to expect from the person you are hiring.

What is Financial Planning?

Financial planning is the process of determining your financial goals, such as knowing when to use your money and what to use it for, and then creating an action plan with the specific steps you need to take to achieve those goals. .

In order to give good advice, a financial planner must collect personal and financial information about you. They use this data to create projections that show you when and how to achieve your goals. These projections are based on a set of realistic assumptions about inflation, return on investment, how much you can save, and how much you will earn and spend.
What makes a good financial planner

A good financial planner will advise you on all of the following:

  •     What do you need to do differently
  •     How much should you save?
  •     What types of retirement accounts to use (IRA, Roth, 401(k), etc.)
  •     What type of mortgage you need if you need to repay or refinance it
  •     What type and how much insurance do you need (this would include life insurance, long-term care insurance, disability insurance, and sometimes property, accident, and health insurance)
  •     How much to keep in your emergency fund
  •     What changes can improve your tax situation?
  •     What return you need to achieve to achieve your goals in a certain period of time
  •     If it makes sense to shrink later in life
  •     What investment risk is appropriate for the different types of accounts you have?

Managed investing
In addition, many financial planners provide advice on estate and tax planning.4 Ask a financial planner which of the above points they address and whether they want to put their advice in writing. Getting written recommendations is always a good idea as it leaves no doubt which action was recommended.

A good financial planner will not make recommendations until he understands your goals and has a long-term financial plan in place for you. If you meet someone who immediately starts talking about a financial product, even if he calls himself a financial planner, he is more likely to be a financial salesperson.5 A good financial planner wants to collect statements and data about everyone. aspects of your financial life.

Many of us are reckless too. Some younger people tend to spend all of their income rather than save some for their future. We must not forget that as our country progresses, inflation makes everything more expensive than before. For example, a middle-class family living on Rs 20,000 a month in 2016 will need to earn about Rs 77,394 by 2036 to maintain the same lifestyle.

We started to invest, but aimlessly. Most people buy insurance for the wrong reason, buying it as a way to save on taxes rather than seeing it as a defense against the financial risk their families run from the premature death of the breadwinner. Those who invest in mutual funds don’t realize that it takes time to get a decent return, and they panic when they suffer short-term losses.

The key to a successful investment is to be objective. The goal is nothing more than a financial achievement that requires a significant inflow of money, such as building your dream home, providing your children with the best possible education or building pension funds. With all these different investment options now available in India, it is not always easy for a new investor to choose one based on their risk appetite, investment style or investment number. Trying to get to know all of the existing assets would take years of hard work and dedication.

Leave a Reply

Your email address will not be published. Required fields are marked *