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Friday, June 03, 2016

Why You Need a Financial Advisor?

Why You Need a Financial Advisor?
B. Padmanaban, CFPCM

We are living in a materialistic world, often our needs are influenced by our peer groups. We hardly spend anything based on our real needs; most of our expenses are impulsive in nature and often regret that, I should have avoided that after you bought something!
I often come across the individual who has a better financial control those who earn Rs. 50,000 per month. Higher the salary, the individual have very less control over their money.
When I checked the same with my advisor community, they also expressed the same.
This clearly shows that you as an investor need somebody like a CFO (Chief Financial Officer) to take care of your financial well being.
Normally, CFO refers to big corporate; here you can hire your CFO (your financial advisor) to take care of your personal finance.
Challenges of an Investor..!
1. Many of the investors are highly impulsive, when it comes to buy anything & everything.
2. Always contemplating whether I myself take care of my investments by spending good amount of time or / I should seek some professional to do that?
If you can concentrate more on your profession and you will tend to grow and advisors can concentrate how to deploy your investments in a much professional manner.
3. Your investments style is typically influenced by your friends, family & colleague. Very rarely you understand what is inflation & what is your investment return post income tax!
4. You often compare the value it has grown rather than at what duration it has grown.
For example, many of our friends told us, I bought a house in 2008 and now it is doubled. Doubling in 8 years is nothing but your investment has grown to 9% CAGR.
Moreover you can not enjoy all the growth; there will be capital gain & other statutory income taxes.
5. Many used to say that GOLD Prices have gone up like anything. I do not think so, if you really want to cross check whether the gold price has really gone up.
Check the day you started working and what was the gold price at that time & what is your salary today and how much gold you can buy today.
I am pretty confident that you can buy much more gold than you started working.
6. EMI is nothing but you are enjoying something well in advance, than you actually possess (full ownership).
Many thought that buying anything in EMI is the smart way to do it. In reality, many will have EMI (all types of EMI) of more 60% of their earning, then how can one save money.


Last but not the least; it is not the question of whether you can do something or / not.
Whether the work can be done by somebody else with lesser cost so that I can concentrate, what am good at it!
For example, many car owners know how to drive in spite of that, they have a driver because he/she feels his/ her time is more precious than driving a car!
Role of Your Personal CFO..!
1. He/She controls all the above points and since he/she is not emotionally connected to anything, he/she can always offer a better solution than the individual is making.
2. More than doing something good, CFO will help you to avoid all the mistakes you keep doing it, time and again.
He/she will create a discipline on your investment behavior. This will have a huge positive impact on your cash flow.
B. Padmanaban, CFPCM.
3. Many thought that, I am fully committed & no money to invest, without understanding the leakages in his/her style of spending.
When you sit & discuss with your financial advisor you will discover more money to invest.
4. Investments are not emotional; it requires time to understand, which is very much easier.
 When we are capable of studying so many things just for the sake of job why not we spend very little time, which is very easy to understand the financial products.
Unfortunately investors have no intention or / inclination to know those thing, is the root cause for many financial problems.
5. CFO absorbs all the market volatility & spending good amount of time to understand various investment products that suits the client needs.
In fact the role of a CFO is nothing but buying you a peace of mind which is the need of the hour!
P.S: When you travel with your financial advisor your financial journey will be much smoother, than you ever imagine.

More importantly, he/she will help you to reach your destination (all your financial goals) well ahead of time.

If a kid wanted to cross the road & he/she should catch hold of their father’s / mother’s hands & the only believe for the kid is he/she will take me to the other side of the road. But, if the kids think in between, to cross the road why he/she is going 2 steps forward and one step backward and one step side words.
Those traffics are at nobody’s control & if you really worry about the traffic, you never cross the roads! 

Like that in your financial journey, market fluctuations are nobody’s control & if your financial goal is strong you will not worry about that volatility.
Believe me Volatility is the way of life!

For more details
B. Padmanaban, CFPCM
Certified Financial Planner
98843 49173


Padmanaban Balasubramanian

Prosperity Coach, Certified Financial Planner, CFP, Chennai, India,
Chennai Area, India
Financial Services
Current
  1. Fortune Planners

Education
  1. Bharathidasan University

https://in.linkedin.com/in/padmanaban-balasubramanian-4477918
Why You Need a Financial Advisor? Reviewed by S. Chitra on June 03, 2016 Rating: 5 Why You Need a Financial Advisor? B. Padmanaban, CFP CM Fortuneplanners.com We are living in a materialistic world, often our need...

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