HOW IS FINANCIAL PLANNING DIFFERENT FROM PORTFOLIO MANAGEMENT OR WEALTH MANAGEMENT?

Broadly speaking, Financial planning involves analyzing your current and projected monetary situation to manage your lifestyle and future financial goals. Portfolio management involves focusing on strategies to obtain higher returns from investible surplus to achieve those goals. Thus, portfolio management is more a subset of financial planning. Simply put, Financial Planning is a Comprehensive Approach to Balance all financial aspects of an individual, whereas Portfolio management is a focused approach on optimizing returns from investments. 

DO I NEED FINANCIAL PLANNING?

It is apparent that everyone needs a financial plan, irrespective of income levels. It is a misconception that only the very wealthy financial planning is only for HNI’s or for those nearing retirement. Financial Plan can help in achieving an individual’s milestones, while others may benefit by adjusting their lifestyle in line with income. Some people may benefit by just inculcating the habit of savings for the future. In that sense, it is the need for everyone.

ONE CANNOT PREDICT THE FUTURE INCOME AND MARKET PERFORMANCE. IS IT POSSIBLE TO, OR WORTH PLANNING FOR?

The basic principals of financial planning includes planning for uncertainties. Depending upon the goals, its duration and the quantum, the investments are adviced accordingly. One cannot predict the returns on investments with utmost accuracy, as there are many forces applying to direct the valuations, but the expertise of a financial planner can certainly help in fairly gauging the returns based on the durations of the investments made.

IS THERE A GUARANTEE THAT A PLAN WILL WORK AS DESIRED?

The plans are designed, keeping in mind the time horizon, the risk appetite of an individual and the market conditions. Also, the mathematical tools and software used in designing the plan are sophisticated enough to model the growth of one’s investment portfolio. But after all, it is the market conditions that affect the investments,so it would be unreasonable to guarantee the working of the plan. Also the disciplined approach of the investor matters.

DOES THE RELATIONSHIP END WITH THE PLAN?

Definitely not! Financial planning is a process and not a product, which we sell and you use and forget it. It is a long term relationship which we are committed for. There are reviews done periodically. Kindly refer to the page Financial Planning Process.

WHAT IS FEES STRUCTURE? WHAT ARE THE REVENUES THAT YOU GENERATE?

We typically charge a flat fee for financial planning. Our revenue also comes from commissions from various executions we undertake for the clients. While we do not charge for execution support for the plan, we do not insist that you carry out execution through us. This keeps us unbiased in our advisory, having only your benefit in mind.

IS THE DATA SHARED BY ME KEPT CONFIDENTIAL?

100%. All personal data shared by you are kept confidential with us. The only way you can verify this is, TRUST us, and we have a strong belief that our practice is based on your TRUST.

WHAT IS THE DIFFERENCE BETWEEN YOU AND OTHER ADVISORS?

Typically, in this industry every product seller, like insurance agents, mutual fund distributors and other product sellers call themselves Advisors. While some of them are genuine advisors, most of them would show you the benefit of a particular product. They would not be able to advice you whether you can afford to buy it and definitely would not understand whether you need to buy it or invest in them. Here is where, we are different from others. We would Advice you on your needs and the type of investments you need to make. Product selection is very much secondary and completely your choice whether you want to buy it from us or not.

SINCE I ALREADY HAVE AN ESTABLISHED CA WHO HELPS ME OUT WITH MY INVESTMENTS, IS IT WORTH SOLICITING SERVICES OF FINANCIAL PLANNER?

A CA, helps you in the fulfillment of government regulation and other formalities. At best he may guide you on tax saving investments. On the other hand, a Financial Planner has the ability to prepare a personalized Financial Plan based on your current income levels, your goals, the risk cover required, etc. Such comprehensive approach is not taken by most CA.