Whom will you take financial advice from? Normally we end up buying financial products either from our Banks or some advisor who comes thru a reference. We seldom work on planning our financial future.
A good financial advisor should never sell product. He or She should provide solutions. He should plan a strategy to achieve your Goals like Child Education, retirement etc. There should be a strategy to achieve goals in time. A product should meet these objectives. So a financial advisor should be your friend and guide in achieving your financial objectives not a product seller. Product purchase is fallout of planning.
A good advisor should not only be able to grow your money but also provide protection from financial risks be it for investment or emergency. He should be able to identify financial risk you have in life or work. The financial risk can be due to your age, health, family history, work, profession, etc. Eg If you are lawyer, doctor, Contractor, Architect and lot other profession your Client can sue you for loss due to negligence. One needs to have professional indemnity cover for same.
While selecting an advisor look at his qualification relevant experience. He should have a qualification in finance and should have good knowledge of financial product. He or she should be planning focused not product focused and explain you risk and reward. A financial planner should have knowledge of all kind of asset like equity, debt, real estate, metal, forex etc. Do check his integrity standards as well thru some reference or testimony. Spend time to select a good advisor and be with him for life. This may be one of the most important decision of your life.
So next time someone approaches you for buying a financial product ask him to identify your risks and how product helps you meet your goals.
Awdhesh Nagar is an experienced banking and finance professional. He did his B.Com (H) from Sri Ram College of Commerce and MBA-Finance from University of Delhi. He currently runs his own organisation by the name ‘Moneylogist’ which advises more than 300 clients on their personal financial planning. He is on mission to improve financial literacy and responsible for financial well-being of his clients. He regularly visits education institutes as guest speaker and provides his views on budget and economic events on media.
Contact No 9873550471
https://www.moneylogist.com
