How to tell if your financial planner is giving you real value

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Hiring a financial advisor can feel like a big step. You’re not just trusting someone with numbers, you’re trusting them with your future goals—whether it’s buying a house, funding your child’s education, or planning retirement. But how do you know if the fee you’re paying is justified?

Transparency about fees and services

The first thing to check is how clearly your advisor explains their fee structure. A genuine advisor won’t hesitate to spell out whether they charge flat fees, commissions, or a mix of both. If you’re left confused about where their incentives lie, that’s a red flag.

Credentials and regulatory approvals

In India, only SEBI-registered investment advisors (RIAs) are allowed to give pure financial advice for a fee. Check if your advisor is registered—you can look them up on the SEBI website. Beyond that, certifications like CFP (Certified Financial Planner) add credibility, but regulation is the non-negotiable.

Tailored advice, not generic plans

If your advisor hands you a cookie-cutter portfolio that looks suspiciously like everyone else’s, you’re not getting value for money. A good advisor should take the time to understand your income, risk tolerance, family goals, and then recommend strategies specific to you.

Communication and accessibility

An advisor’s job isn’t just to plan your finances once and disappear. They should be available for regular check-ins, help you adapt to changes like job switches or tax updates, and explain decisions in simple terms. If you only hear from them when it’s time to sell you a new product, that’s not a good sign.

Results you can measure

Finally, judge the advisor by outcomes. No one can promise returns, but over time you should see tangible benefits like reduced tax outgo, a balanced portfolio, or progress toward your savings targets. If all you’re left with is high-cost products and no clarity, you’re paying too much for too little.

FAQs

1. How much should a financial advisor charge in India?

Fee-only RIAs often charge ₹10,000-₹25,000 a year for a financial plan, depending on complexity. Commission-based advisors may not charge upfront but earn from the products you buy.

2. Can I manage without a financial advisor?

Yes, if you’re disciplined and comfortable handling taxes, investments, and insurance. But for most people, a qualified advisor can help avoid costly mistakes.

3. What’s the biggest red flag in a financial advisor?

If they push products aggressively, avoid talking about costs, or don’t have SEBI registration, it’s a sign you should look elsewhere.