SECTION 1
If Sachin Tendulkar needed Ramakant Achrekar and Usain Bolt needed Glen Mills what makes you think that you can do it on your own?
Hire an Independent Financial Advisor as your financial coach, who can understand your current financial situation, cashflows, needs and future goals to help you setup a robust financial plan.
Once the plan is setup he should also help you implement review and manage the plan effectively to make sure it stays in line with your goals.
Do all the due diligence necessary before choosing the right financial advisor, the following ideas will help you choose the right one.
Qualities of a Good Financial Advisor
A Financial Advisor should be a good leader, and not the typical salesperson.
He should be a good listener, if he does not understand your goals, how will he help you achieve them?
He should have good communication skills, if he cannot communicate well, how will he motivate you do get out of your comfort zone and take the necessary action?
A good financial advisor should be available for his clients, a person who does not answer calls, or does not return calls can never be trusted.
He should educate his clients to help them take the right investment decisions at the right time, hence he should be well versed and update about the markets and techniques.
He should be qualified, In UAE certification from CII UK is considered as a good qualification, check if your financial advisor is qualified enough to advise you.
He should be experienced, you don't want to be a guinea pig; or a training ground do you?
He should put your interests ahead of his.
No doubt he is trying to make a living by helping you achieve your financial goals; but he should not take advantage of your trust.
He should be a part of a larger organization, to ensure continuity if he chooses to move and to be able to negotiate better terms and service from the providers.
He should have a good support team, if he is a one man army, he cannot do justice to your relationship.
He should be open to discuss his investment strategies, explain the charges and pros and cons.
He should be able to exactly explain, what he plans to do with your money.
At the same time, the planner should also be prepared to steer your investments in a different direction; if in case the first plan doesn’t work out as expected, or market conditions don’t coincide with the plan.
Finally, a good financial planner should not panic when the markets go south, he should be confident enough to handle the situation well and should be able to explain the need for remaining calm and take the right decisions.
Avoid advisors who are always trying to sell, without considering your goals or needs.
Be very careful in choosing your financial advisor, by obtaining the necessary information like his experience, about the company he represents, and his testimonials from his satisfied clients.
After obtaining the relevant information from the prospective financial adviser, do your own due diligence by referring to his LinkedIn and other social networks to cross verify the information provided.
Most of us choose to sign up for an investment / savings policy without setting up a financial plan, which may not be the right approach.
It is important to invest in a policy which fits into your larger financial plan; helping you achieve your financial goals, instead of investing in ad hoc investment plan.