The,Steps,That,Help,Selecting, DIY The 5 Steps That Help Selecting The Best Financial advisor /

When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in

Preparing tostart the choice:  Satish grew concerned about how to manage his personalfinance investments and asked his uncle, who is a very successful investor, if heknew a good financial advisor / investment planner. His uncle knows a few eachspecializing in a particular type of financial consultation, and asked himabout the type of consultation he.  Required. Thenhis uncle went to tell him that his first task lay in identifying his financialobjective, whether he needed financial advice for goals like long-termfinancial portfolio, or tax planning, or providing for the higher education andmarriage of his children. Uncle went on to tell him there were more than 50 typeof specialists specializing in aspects like stocks, insurance, mutual funds, postalsavings, financial planning, taxation and real estate and told him the five steps to select the best financialadvisor / investment planner.  1) Meetingand reviewing different financial advisors / investment planners:Onceyour financial objective and goals are set, your choice of a specialist woulddepend on whether you want one for your savings plans, tax advice andpreparation, stock and equity portfolios, investment strategies, personalbudgeting and debt management, retirement planning, estate planning, orinsurance advice. A search on the internet and referrals fromfriends, colleagues and relatives could help you find some appropriate financialadvisors / investment planners to look into your concern. Make sure that whenthe financial advisor / investment planner suggests suitable financial plans,he also assures you to look into its maintenance, updating and implementationwith periodic reviews of reports and correspondence.  2) Details about thefinancial advisor / investment planner’s educational qualifications, certifications,and experience: Asall other dealings financial dealings too require the qualifications,certification and experience. So it is best to know and verify the advisor’seducational qualifications, certifications and experience. It pays to verifyrequired certifications, like being licensed by IRDA to do insurance businessand by by AMFI to deal in mutual funds in India. The extra qualifications likeCFP add more value.  In addition, the professional’s experience inthe nature of business, and with sizable experience dealing with recessiontimes plays a vital role in the choice of a financial advisor / investmentplanner. The investment advisor’s past professional positions and his reasonsfor change will be able to tell how efficient he is, with a positive switch ofrevealing his good expertise. 3)Information of clients he has dealt with along with references:I would say it is in yourinterest to not rely just on the positive talk of a financial advisor /investment planner, and beware of his trying to belittle your ideas. Asking fora reference helps verifying his authenticity, honesty, integrity, and empathyand whether he specializes in the similar nature of business you expect of him.I would say if you are young, you would not benefit from a financial advisor /investment planner dealing mainly in retirement and senior citizen plans.  Interviewinga number of clients would give you the best idea if the financial advisor /investment planner can be relied upon confidently to meet your financial goalsand objectives. In addition to this you may verify the testimonials given tohim by his clients. 4. Verifyhis past records to judge his present and future behavior:I would rather rely on writtenwords like past documents than what he professes, and would say that a financialadvisor / investment planner’s past performance indicated well his present andfuture actions. Iwould also make surethat any disciplinary action for professional and ethic violation has beentaken.I would also avoid financial advisor /investment planners claiming very high performance, as they would highly riskmy money.  5) The rateand method of compensation for services:Now comes, the final stage of discussing and knowing your financialadvisor / investment planner’s compensation. Financial advisor / investmentplanners have varied compensation methods for their services, charges could behourly, a flat monthly fee, a percentage on the assets managed, and acommission on the financial products managed or could be based on the number oftransactions.  Others could be acombination of 2 or more methods. A word of caution in dealing with financial advisor /investment planners charging on number of trades, or getting commission fromthe investment company, these fees or commissions can be profit motivated withno empathy to client needs. You could always suggest changes in the fee structure,if not accepted you could always find a reasonable financial advisor /investment planner to sign a compensation agreement with him.  Thefinal note:My best wishes for good financial dealings with financialadvisor / investment planners, but a word of caution, are ‘be selective,diligent and patient to understand well the philosophy of your investment andnever be shy to ask questions and clarify doubts’.