There are warning signs that should not be ignored, warns Vijay Pandya.
L ast week, we considered the significance of a financial planner and the role he or she can play in guiding you on the best way to achieve your financial goals. The thing to keep in mind is that there is a huge amount of trust involved.
A financial planner is someone with whom you share all your monetary details, entrusting the financial future of you and your family as well. However, every profession has its share of black sheep and you may just inadvertently end up selecting the wrong person. So the sooner you figure out whether the choice was right or not, the better it is.
Ask yourself the following questions based on your initial interaction:
Does my planner put my needs and interests first?
Does my planner specialise in clients who are like me?
What is the track record and extent of domain knowledge?
What is the complete range of services that he or she provides?
Is his or her basic approach to financial planning in sync with mine?
Is my planer affiliated to institutions like the Financial Planning Association?
Will my planner or his team help me implement their recommendations?
Are there any business relationships that might present a conflictof interest?
Is the person properly focused on my needs or trying to sell products?
Does my planner make a living on professional fees or commissions
Is my planer forthright in answering your queries or clarifying doubts?
Am I comfortable discussing intricate details of past investments?
If you feel that the planner you have chosen is not a good match for you, start looking out for someone who is more suitable. so ask lots of questions.
Ramalingam K, Director and Chief Financial Planner, Holistic Investment Planners, highlights ten of the warning signs that emphasise on the risk that an amateur financial advisor could impose on you.
A consultant who is not CFP certified.
One who hesitates to provide referrals.
nNot giving enough time is a big red signal.
Avoiding meetings and status updates.
Pressurising and impatient to end discussions.
Pitching like a salesperson for a risky investment.
Hides charges associated with his recommendations.
Struggling to understand complex scenarios.
Promising too high returns or whatever you ask for.
Claiming there is no risk contradicting analyst reports.
These warning signs might save your money and you from a big loss. If even one of the above signs comes up, move on and find an expert financial advisor immediately. Be wise and invest wisely!
Ramalingam K, Director and Chief Financial Planner, Holistic Investment Planners
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