Swati Mukund of MSVentures Financial Planners tells about four things to be kept in mind while dealing with financial planners.
MSVentures Financial Planners
Mr. Sudhir Agarwal (name changed) visited our office a few days ago for reviewing his financial plan.
While discussing his current financial scenario, he mentioned that he had just incurred an expenditure of over Rs. 2 lakhs on a vacation abroad which was his dream holiday. The question here was "at what cost did he take the vacation?"
The money was initially earmarked for his daughter's primary education and it was rather lavishly spent on something less important.
Many a times we, as financial planners, are faced with situations wherein the client tells us "I have spent the money, now help me out of this mess." It's the same as going to a dietician and telling him "I will eat everything that I like but help me lose weight.
Financial planners are not magicians or mind-readers. They work as per the client's needs and requirements and in turn the client is also expected to prioritize and take a disciplinary approach towards acheiving his goals.
Before you swipe your card or blow up cash on something frivolous, think about what this money was originally saved up for it. That will help you decide whether the expenditure is necessary or uncalled for.
Share all data with your planners
Financial planners are people who are out to help you just like you explain your current condition to your physician in order to get the right medicine.
The same way you must elaborate on all your needs and goals and your present financial situation so that an ideal plan can be worked at and then stick to your plan. This is something which is easier said than done.
Making a financial plan is just half the job done
The Herculean task is adhering to it and working in tandem with it. That will make the difference.
Monitor your plan along with your planner
Financial plans need to be reviewed from time to time so that any changes in needs, goals, the current market scenario and the client's present fiancial condition can be incorporated to suit the immediate and future requirements.
Financial plan by itself is just the base. Constant efforts on part of the planner and the client is desirable.