Let’s begin by understanding that it is essential to seek advice from professionals, especially when you do not know a lot about the field you’re exploring. Professionals have experience, inside knowledge, and the know-how to help you navigate your way through 8various options to find specific products that are suited to your needs the most. Therefore, let’s not discount how valuable they can be. However, at the same time, it is also essential to note that everyone is out to make a buck and there are many things that people will keep from you, in order to make your business with them more profitable to them.
Here are certain things your financial planners are not going to tell you:
1. Their Primary Job is SALES
So, here’s the thing, your financial planner isn’t always looking out for your best interests. The policy he/she has been calling you to tell you about might not be as beneficial to you as it is to your planner. Therefore, you must think carefully before you invest in anything that’s being pushed too hard. Sure, it will have some plus points, but it is bound to have a few drawbacks too and you must ask about those in order to get the full picture before you make any decision.
2. Their past experience has NO RELEVANCE
The Financial Planning Board India website has a list of all financial planners who have been accredited so it is easy to check whether the person you are working with has the credentials or not. However, did you know that having credentials isn’t the only thing you need to be worried about? Many financial planners in India began their career either in mutual funds or as insurance agents. While these can be relevant financial instruments, they are certainly apt to cloud judgement and lead to your planner pushing you towards specific financial products that may not suit your needs at all. Therefore, before you commit to working with a financial planner, you must find out a bit more about their work experience. You certainly don’t want to be anyone’s first!
3. Their questionnaires are POINTLESS
Many financial planners in India often resort to handing their clients 10 point questionnaires that are designed to find out how adverse or open to risk they are. On the basis of the results, they then push certain high-risk or low-risk financial products. However, this does not help you with long term planning. The ideal financial planner should essential gauge your needs and try and strategize along with you to identify the means to achieve them. For instance, do you aspire to send your children abroad? Do you want to buy a house? Are you planning your retirement too late? These are the questions that should be asked and answered for more comprehensive planning. Your risk appetite can always be accounted for once your goals are better understood.
4. They aren’t YOUR planners
Often, when you are dealing with a large organization, you may be lulled by the sense of security that comes with a brand name. However, signing up with an organization can often mean that you are the organization’s client, and not a specific planner’s. This can lead to way too much confusion and back and forth every time you need to get in touch with someone. It is always better to have one agent that knows your financial history inside out, rather than a new analyst each time who must first review your files, and then tell you what you should do!