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Financial Planner - Do Integrity & Dependability Check



How does one can find value proposition when it comes to financial planning, which is a new area? There is nothing to benchmark it with. So, how does one figure what is the right fee to pay?


Look at what you want. You probably want to hire a financial planner to get a blueprint for your life ahead and want to know how to achieve your goals. For creating a tailor-made financial plan, our experience is that it takes 25-30 man-hours in all. Taking an average of Rs 500 per hour for hiring the services of a qualified financial planner like one who has a CFP(CM) certificate, the fee would come to Rs 12,500 to Rs 15,000. But the per-hour rate can be higher or lower depending on the process adopted, the experience and expertise of the planner, etc. That's how planners arrive at their fee.


Now, is that value for money? For that you need to find out what benefits you would derive by engaging them. The financial plan will give you clarity, direction and pathway to achieve your goals. That is important as you will know where you are, where you need to go and how to get there. The financial planner will also suggest if past investments and insurances are good to keep or are damaged goods that need to be replaced. A good financial planner will also help you a great deal in cash management – matching the right instrument for the end-use and tenure.


We have found that the amount of extra money we could make for our clients by judicious investments would be more than enough to pay our fees! Financial planners will ensure that you don't make a blunder while making allocation to different asset classes or in choosing products. You will also not be sweet-talked into some card-castle-of-a-product, which makes sense only to the company and their agent.


There are various advantages you can derive from using the services of a financial planner. A financial planner will give you a clear financial blueprint, which will ensure peace of mind as you have an expert to guide you on finances all through the year. The planner would also stanch leakages by stopping/reallocating resources to appropriate products, improving returns and relevance.


Before engaging a financial planner, find out about the various services you can get. Find out how much money the planner can save/ make for you. Find out how comprehensive the plan is — for the financial plans of different planners could be different. Do a quick check about the integrity and dependability of the planner. Ask for references if you feel the need for it. Fees differ based on the experience and expertise of the planner, reputation, their processes, services offered, people strength (is it a single person or is it a team?), etc.


After understanding the value offered, you can decide who charges the appropriate fee and whose offering is good for you.

 

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Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

 

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