Financial Planning in the right hand

Nowadays, it’s been a growing trend of getting those pesky calls from people calling themselves as “Financial Planners”, who are more concerned about your Financial Future than anybody does. These calls could reach you from your very own Bank or from any other Financial Service Provider. In fact, the whole idea of Financial Planning is now widely used across Financial Industry to pitch you with another appealing complicated product or to add more complexities into your existing complex financial situation. The reality is most of the so called Financial Planners are themselves unfamiliar with the idea of Financial Planning and the question that pops into your head is whether to believe them or not? I shall be highlighting few points to clear this utter confusion: -

1)      Why “Financial Planning” term so strongly and commonly used ?– Off lately, Financial Planning is taking its space among Indian consumers. FPSB, India (a Professional Standards setting body for Financial Planners in India) is proactively spreading the Financial Literacy among Indian consumers and working towards safeguarding there interests. Resultantly, a growing part of Indian population is realizing the importance of disciplined approach towards their finances rather than just to be an ad-hoc buyer of products. The growing awareness has actually put off their urge of buying products, which has caught attention of most of the product sellers. So now, Financial Planning is used to instill a sense of trustworthiness in their transaction with you.

2)      How to believe on authenticity of Financial Planner? – You can always ask them if they are certified holder of CFP^CM designation. Also, you can verify the details of certified planners on www.fpsbindia.org , which will ensure that you are dealing with a real planner. You will also get details of the experience at the same place which would indicate on how seasoned your planner is?

3)      Should you go ahead? – Once you find yourself satisfied with the amount of details you have of your planner, you can go ahead to engage him/her in order to take control of your financial goals. It is only after the financial planning process starts then you will know the difference created in your life.

4)      Are you on right track ?- A good way to rate the trustworthiness of a Financial Planner is that he will always be transparent in his engagement with you and will walk an extra mile to help you understand the implications of his recommendations and specify  conflict of interest, if any. Also, he/she should be regularly be reviewing the Plan and updating you on the progress that you have been making.

Most of the people ignore this very basic requirement of Financial Planning for their own reasons while lot many times just because they have burnt their fingers by entering into transactions based on misleading advice of a financial advisor. Time is changing and so is important to change your perception. There is a demanding need to focus on every aspect of your financial scenario than just following mere investing philosophies and those days are not far when hiring a real Financial Planner would soon become inevitable.