So much has been written about financial planning and the need to have a financial plan, I probably don’t need to tell you more as to how you can benefit from it.
What are they key triggers to help you if you need it too?
- Do you feel that your approach towards your money is not structured?
- Do you feel lost looking at your investment portfolio? (or don’t even know where all the money is…it’s true for many people)
- Do you feel constrained for time or effort to make the right investment decisions?
- Do you feel the money is getting wasted in the bank and not working for you?
- Do you feel you are paying dumb commissions on your investments to the bank without getting the right advice?
- Do you feel it is too late now?
If you mark “yes” for any of the above questions, you need to work on your financial and investment planning.
Wait, are these two different?
Let me explain. Most of our lives, as investors, we are concerned only about buying ‘that’ investment – PPF, FD, Stocks, Mutual Funds, Endowment, ULIPs, Property, etc.
Raise your hand, if you made most of your investments for purely for ‘tax – savings’. That’s usually the first trigger. It’s fine.
But can you go on with this behaviour?
Will you be able to fulfil financial obligations, meet your goals, provide for the family or know when you can actually be financially free?
Oh yes, you can. One can be very lucky and just get by.
Simple question. When was the last time you depended on just your luck?
If I understand it right, you like to aim high, organise your resources with a plan and then focus your efforts and actions to achieve the aim. (The factor of luck is just one of the components and not the only thing.)
Making investment is all about action (with no plan). Hence, financial planning.
To be clear, financial planning is a step before making actual investments. Heck, it is supposed to tell you which investments to make. No more random guesses!
How should you go about doing financial planning?
Simple, you can do it yourself. There are several free templates, online software, etc. available on the internet. Just go ahead and use them. I too have made a Financial freedom workbook. When you subscribe to the newsletter, you get it as a BONUS download.
Now, in several cases, the FREE service providers have an expectation that you would either buy something from them or invest in one of their products. Typical of life insurance companies / agents, even banks!
This expectation has a potential conflict of interest. Question to ask – Who is the advisor / agent really serving? So, beware!
Now, if you are not a DIY inclined person, you can approach a financial planner / investment advisor to work with. An experienced planner will help you sort out your mind in terms “what’s important to you”, “where your money should be focused” and “how”.
This service is not free. The professionals charge (sometimes, a lot).
There are others who can just use a software to enter inputs and throw a plan at you. I will leave it to your wisdom to decide if that is the approach you want to take.
That’s what brings us to the next question.
What is the service worth?
This is a big question. It depends.
If you have a messed up – large portfolio, rogue insurance policies, you will need to spend significant time with your planner / advisor in not just building the plan but also to sort the portfolio out.
If you are starting on a clean slate, you may still have a hunger for learning and talking it out with your planner / advisor about various decisions you need to make or assess various investment opportunities.
Let’s make one thing clear. You are now going beyond using software or excel sheets and in the domain of personal interactions. In this case, more experienced the planner, large the benefit of advice and hence higher the fee.
A planner not just works with your money but more importantly, with you. S/he prepares you to live a more disciplined, structured financial life and yet help you identify enough room to live your life fully.
Not to mention the immense clarity it brings… more peace of mind follows.
Does Unovest offer financial planning services?
Of course, we do. In fact, there are 2 ways in which you can use these services.
#1 The DIY Way – If you believe, you are fairly conversant with your money and investments, and just need to provide a quick structure and assess key relevant decisions, you can choose Insider Plus.
This is DIY and yet you have the advice tools and support to carry out the planning. You can ask all your questions including on a BONUS call and get yourself ready to focus your investments towards your desired end uses / goals.
This is also one of the lowest cost service in the industry.
Before you decide, know the details here.
#2 Personalised Advisory – If you are looking for a deeper engagement, with personalised interactions on your goals, current portfolio, insurance, investment plan, action plan and monitoring it over a period, you should consider the personalised advisory service.
You should read the service details (including the testimonials) and then write to me / call me. We can then discuss the best way forward.
Yes, as you may have guessed, this one comes with a higher fee and it can vary based on what is it that you expect.
If you don’t have enough savings or a large enough portfolio, should you take such a service? All the more reason, you should.
Go ahead and start sorting your financial life today, give it focus and supercharge towards your financial goals.
Have any questions, just reply to this email. All the best!