How does a Financial Planner

Best Ways to explain to our clients: What we do as Financial Planner

Things may come to those who wait, but only the things left by those who hustle-Abraham Lincoln

To understand more, Why do you need a financial planner? 10 questions you need to ask yourself.

Since I work as a Financial Planner, I come across many people who have big dreams, but they are reluctant to hire a financial advisor. Most of the clients have an array of questions regarding how a Financial Planner works. Therefore, I decided to dedicate one article to shine the torch on how a Financial Planner operates. This article will help you to understand the backstage story or an advisor and the best practices that I follow.

Being a CFPCM (CERTIFIED FINANCIAL PLANNERCM), I understand people’s goals and then look into the future to see what they would need to accomplish their goals.

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. (Source: Wikipedia).

More than 77% of retirees in Canada work with a financial planner to plan their retirement fund and goals for over a decade, says a study in Canada. If such a developed country has a significant population that knows how a financial planner works for them, it is the time that we also understand the same.

To help people make smarter decisions, I advise on specific methods and processes. I follow a system driven approach, which makes it easier for me to track all the investment decisions and provide the course corrections. Corrections that may be needed to keep the market movements or personal money equations balanced, always. As the captain of the ship, my role is to steer the ship away from dangers; to stop and then to provide the right direction. Direction, for my clients ,to reach their financial destinations.

Let’s analyse how a financial planner works

First, you need to find out if you need a financial planner. The visual here highlights the best available options. So choose if you have one more such need.

To watch video, Why we need advice from a financial advisor?
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Once you are clear what you are looking forward to, the financial planner now tries to understand your specific goals more deeply.

Here a significant point to be noted is that people who are looking at wealth creation or just looking at returns may not be requiring the services of a financial planner. They can go straight to a wealth manager or an investment advisor.

Now that financial goals are clear, the planner asks some necessary details to understand your vision of money, wealth and investments that you have already made. At this stage, he would show you the following kind of a visual to explain what all are the areas of personal finances that he is going to be working on with you

He would then ask you for more detailed information about your income, expenses, current investments that have been made and exact future goals. These could be goals like your children’s education, their marriage, house buying decisions, retirement, etc. He would also focus on evaluating your life and health insurance and check if they are adequate.

Once your goals are made on a timeline, your financial planner offers a step-by-step process for interacting with you like in the following chart:

Thus, your financial planner has given you a complete explanation of how he is going to be working with you. The planner (after having got the necessary information from you) takes the next step of conducting a risk profiling test.

Now that your goals are clear, the risk profiling test indicates whether you have an aggressive or balanced or conservative risk appetite. The planner now looks at mapping your emphasise on saving systematically and always aligning all your investments with changing market conditions. This alignment is called as rebalancing your equity-debt portfolio. This alignment would ensure the smoothening of the trajectory and protects you from the peaks and troughs of the market.

The planner would continuously review all your necessary insurances like life, health, home, office, travel, disability, critical illness, etc. This review should ensure that you get advice on all insurances; relevant Insurance policies adequately cover you and your families. Thus, leaving no room to cause an effect on your money flows and safeguard your income to expenses flow too.

Why is this kind of goal achievement process a grey area for most of the people? More likely because they don’t have goals. Well, here, the planner’s role becomes significant as he continuously mentors the clients on the specific methods for each of the goals and educates on the right focus areas. Meanwhile, he continues to give the know-how for each goal achieved. He also provides the proper action steps for each goal. This becomes a cycle and every 3-6 month’s review meetings take care of all the doubts or fears.

Financial planners are not only for wealthy but for everyone who wants to ensure that their money is not rusting away and is put to optimum use. The planner makes you SMARTER with your goals and helps you secure your financial future. Thus he enables you to enjoy your current lifestyle and systematically achieve all your future dreams. He also works to get your existing cash flow work harder for yo

how can we help you?

Contact us at Advantage FP at:
+91 9810144683 (Taresh Bhatia)
+91 9910774665 (Atul Ranjan)
+91 124 4056398 (Office)

“When I met Taressh he explained me how I could get benefits from mutual fund. Now all my financial goals are cleared.”

Sachin Bhatnagar

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