1. Is Financial Planning meant for everyone?

Yes! If you passionately want to achieve your aspirations. Financial Planning is usually targeted to those individuals who want to accomplish their goals through a systematic process, keeping in mind their financial status.

2. Will paying a financial planner be worth the money that I am investing?

When you hire a financial planner, you will be paying for the advice which will help you manage your finances better.

3. Can I expect a higher rate of return if I go to a Financial Planner than what is normally achieved?

A Financial Planner helps you to develop and create a plan that will assist you to achieve your dreams in a specific time frame. This does not give any guarantee on returns.

4. Is there any empirical research on the tangible or monetary benefits of Financial Planning?

Yes, a research from investment researcher Morningstar Inc. gives investors an idea of the added value of financial planning: An extra 1.82% per year. That’s not some random figure, but rather the results of a groundbreaking study that Morningstar conducted in 2012 (Source: Wall Street Journal).

5. What is the guarantee that the Financial Planner will help me achieve excess returns?

What the Morningstar research showed is that the ability to deliver extra income — unlike the ability to beat the market — is completely predictable. Take certain steps — what Morningstar calls “following an efficient financial planning strategy” — and you achieve excess returns.

6. How can a Financial Planner help me, when I already have an established CA who helps me out with my investments?

A Financial Planner does more than just telling you where to invest. He understands your goals and dreams and prepares a plan that will help you achieve them without strenuous planning. A CA, on the other hand, helps you in the fulfillment of government regulations such Tax computation, filing of ITRs, audits and other formalities.

7. What is the importance of a financial planner when I get the same advice from Fund Advisors?

Fund Advisors have one goal and that is to sell a product of the company. And while they do talk about how these investments can change your life, it’s often to push their products. Financial Planners look at your needs and what suits you the best, not what suits them the best.

8. Should I disclose all my confidential details to my Financial Planner?

It is very important to disclose your financial details to your Financial Planner. Incomplete information would cause confusion and will cause unknown glitches in a plan that would be created for you.

9. My Life Insurance Agent does Financial Planning for me that too absolutely free so why should I pay you for Advice?

An Agent or a Broker takes a narrow view focusing on one or two products or goals. He /She shall help you with paper work, submit documents & complete other modalities but often miss-sells products, promoting those that suit their needs more than yours. Although he/ She will not charge directly; the commission is built into the product.

10. Do I really need a Financial Planner if I already have a Wealth Manager or Relationship Manager of a Reputed MNC Bank managing my Wealth?

Although a Wealth Manager would have a broader view of overall finances, but focuses on investments and also as they would be having their targets to achieve would only push products which are more profitable to them. Also their range of brands & products would be very limited. The recent instances of miss-selling and fraud by the Wealth Mangers of a few reputed MNC Banks have made them infamous.

11. How Do we Differentiate between a Genuine Financial Planner from the many who claim to be Financial Planners such as Insurance or MF Agents, Equity Brokers, Wealth Managers or Relationship Managers of Banks?

To be a Financial Planner one needs to have a Professional Certification. One who does not have a certification is not a Financial Planner.There are two Professional Certifications available (1) NISM i.e National Institute of Securities Markets - which is an educational trust set up by SEBI has CPFA Certified Personal Financial Advisor (2) FPSB i.e Financial Planning Standards Board has CFP Certification - Certified Financial Planner.

12. What is the difference between CPFA & CFP ?

Both are Professional Certifications for a Financial Planner and one can have any of the two. While the concepts & syllabus for both the courses is similar, the Goal is same . A CFP is an International Certification recognized in 24 countries while the CPFA is an Indian Certification specifically designed keeping in mind the Financial Markets & Laws in India.

© Copyright - Aarkay Financial Consultancy - Theme by Optimum Financial Solutions Pvt Ltd.