Knowingly or Unknowingly, You NEED a Financial Planner

Knowingly or Unknowingly, You NEED a Financial Planner

In their journal of Consumer Research, Richard J Netmeyer, Dee Warmath, clearly mention that our perceived financial wellbeing, i.e., what we think about our financial health status (might or might not coincide with reality), is a key factor of our actual wellbeing. This perceived financial status, includes both, financial health as of today and how secure we and the future is with respect to our money.
In simple terms, our mental health, to a very extent depends upon our job security, our responsibilities, both as of now, and in forthcoming future as well.
Financial Planner to the rescue-irrespective of your income!
There are a lot of people who think financial planner is only required by those who have a multi crore portfolio!
Depending upon their status and priorities, people tend to allocate the amount to their respective goals. This planning, is actually irrespective of ‘how much’.
Instead, financial planner can help you out in chopping of what’s not required and plan for what is required.
Given the limited set of resources, a plan can be charted out, in that limited set also.
Financial planner can help you out, in preparing the plan, getting your priorities straight, resource allocation, suggestions for investment, etc.

Financial Planners can help clarify the process
A lot of things involve in the process.

1. Assessment of current financial situation: your planner will as you the numbers first- your current assets, liabilities, etc. It will include questions like cost of your house, total loan pending, dependents, etc.
2. Stating of financial goals: A much important step in the process- planner will need you to state your goals, and list them priority wise and allocate cost besides them. Generally, retirement is considered to be topmost priority.
3. Review of current investments: Your planner will review your current investment options and will see whether and how it can be assimilated in the current planning process
4. Developing of a financial plan: once, above steps are accomplished, your financial planner will chart out a plan now. This will indicate, how much % of your goals are accomplished, how much is there to go and what investments you would be making depending upon your risk profile.
5. Implementation of financial plan: Your financial planner, will make the required investments and will keep you updated accordingly.

Financial Planner will do Regular Monitoring
Getting a plane made is not just a one-time process. It has to be monitored periodically and changes have to be made in accordance with both market and timeline of your goals.
Also, financial planner is just one call away if there are any modification in the plan required.

Save Time . . . and Stress
Getting back to where we started, financial planner can be of great resource. For those who are not in this profession and charter out the plan by themselves, tend to get themselves in a fix, and end up getting messed up. This not only results in losing their money but their mental health.
Hence, it is better to hire a financial planner, irrespective of your income, goals, etc. And the sooner you hire, the better!

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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