Authored By: Ajit
Panicker
The field of financial planning is growing fast and may be in few years from now , it would be an industry in itself. The prominence and importance of financial planners has come into being due to a situation where clients have felt that all the advisors involved in the wealth management or financial planning are primarily from some kind of institutions.
Due to which they are compulsorily biased to, if not sell , then recommend only the products which their companies are selling. The professionals involved are independent financial advisors, agents and advisors of particular product based companies like from life insurance or mutual fund companies, bank employees, tax accountants, chartered accountants, insurance employees, investment advisors from stoch market and so on.
There is no dearth of such people who are making their livings by either selling the products or by recommending them. Hence it becomes very important to assess the qualities which you should look into your advisor before finalizing him to do your financial planning. Following qualities may be of vitaility to you, in assessing the advisors:
1.Ethical : Has the financial planner informed you of the limitations on their ability to provide objective financial planning services. Has he declared his qualifications and experience to you in the most transparent manner.
2.Competence: Is the financial planner you are getting engaged with, is professionally qualified and is certified. Does he have requisite certifications, qualifications and minimum standard experinece required to practice financial planning.
3.Confidentiality: Does the financial planner you are engaged with, maintains all levels of confidentiality in keeping your information and takes specific consent wherever required before using the information you have given.
4.Integrity : Does his background credits his profession and has he been a part of any act which doubts his integrity.
5.Knowledge: Apart from the certifications he has, is he well equipped in handling your portfolio and has all the required product, legal, compliant knowledge required in developing your financial plan.
6.Nature of his recommendations: Is his nature biased towards any product, any particular company or any specific type of investment intrument, if it so, probably the reason is that , there are monetary interests involved.
The field of financial planning is growing fast and may be in few years from now , it would be an industry in itself. The prominence and importance of financial planners has come into being due to a situation where clients have felt that all the advisors involved in the wealth management or financial planning are primarily from some kind of institutions.
Due to which they are compulsorily biased to, if not sell , then recommend only the products which their companies are selling. The professionals involved are independent financial advisors, agents and advisors of particular product based companies like from life insurance or mutual fund companies, bank employees, tax accountants, chartered accountants, insurance employees, investment advisors from stoch market and so on.
There is no dearth of such people who are making their livings by either selling the products or by recommending them. Hence it becomes very important to assess the qualities which you should look into your advisor before finalizing him to do your financial planning. Following qualities may be of vitaility to you, in assessing the advisors:
1.Ethical : Has the financial planner informed you of the limitations on their ability to provide objective financial planning services. Has he declared his qualifications and experience to you in the most transparent manner.
2.Competence: Is the financial planner you are getting engaged with, is professionally qualified and is certified. Does he have requisite certifications, qualifications and minimum standard experinece required to practice financial planning.
3.Confidentiality: Does the financial planner you are engaged with, maintains all levels of confidentiality in keeping your information and takes specific consent wherever required before using the information you have given.
4.Integrity : Does his background credits his profession and has he been a part of any act which doubts his integrity.
5.Knowledge: Apart from the certifications he has, is he well equipped in handling your portfolio and has all the required product, legal, compliant knowledge required in developing your financial plan.
6.Nature of his recommendations: Is his nature biased towards any product, any particular company or any specific type of investment intrument, if it so, probably the reason is that , there are monetary interests involved.
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