How useful is A Financial Advisor for Your Financial Journey?

Published by Sharekhan Education | January 6, 2022

How useful is A Financial Advisor for Your Financial Journey?

Everybody wants to achieve financial success, however to achieve that success, you need to take right financial decisions. You need to set your goals, know your risk profile and invest in investment avenues that match your requirements. This requires a good understanding of various financial assets but what if you lack the required financial knowledge?  Moreover executing your financial decisions involves lot of documentation which may consume a lot of your time and energy. What then if you do not find time to execute your financial decisions? To resolve such or other trivial issues you may require help and support from someone who is an expert in handling these issues don’t you think? This is where a financial advisor can prove useful in your financial journey and walk you to your financial destination.

Financial advisors generally are links, points of contact between you and the financial institutions. They take care of all the running around; like submitting your forms, KYC and other documents as required; saving you a lot of time and energy. Moreover they can also help and guide you on where, when and how to invest. But it would be wise to note that the advice given may not always be suitable or in your best interest. Therefore you need to carefully select the one who can work towards your financial wellbeing as your fiduciary and provide unbiased financial advice too.

Listed below are a few parameters that can help you select the right financial advisor.

• Competency: The advisors should be knowledgeable and must have the required expertise and competence related to their field. This is important if you want to meet financial success.
• Reputation: Can you entrust your money to someone you don’t trust? No!! Exactly our point, therefore while selecting a financial advisor it is crucial to do his/her background check first and select a reputed advisor. Selecting a reputed advisor can help in your client -advisor relationship going a long way.
• Certifications & Licenses held: Any person or company who is in the business of product selling needs to have certain certifications or/and licenses in place. This is mandated by the law. So while you select a financial advisor do ensure that they hold valid certifications and licenses as necessary.
• Unbiased approach: The advisor should have an unbiased approach and advice products that suit your requirements rather than those that can earn him or her higher commissions. It is always good to stay in control of your finances and get involved in the decision making process.
• Services offered: Take a look at the services offered; whether he is offering just one type of financial product or variety of products like mutual funds, insurance, equities etc. Try to select an advisor who can be your one point of contact offering multiple products to meet your financial needs.
• Accessible: The advisor should be easily accessible. Ideally select one who can give you services at your door step.

To summarize,

We can say that a thoughtfully selected financial advisor can provide useful financial inputs to help you achieve your financial goals; especially if you lack time or knowledge. However too much dependency may not be practical. So let your financial advisor be your support system and not your operating system.

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Happy Reading….