As you grow in life you ought to focus on setting and developing your long term financial security goals. Be it your first job or marriage, there would always be certain life events that you have to deal with responsibility. Hiring a financial planner becomes a major need to address these key concerns.
Given below are some life situations when one does and should engage a financial planner’s services.
Willingness to get wealthier
Unlike earlier days, these days with the emerging industrial development and boosting economic growth in India, it has become very common among the educated talent pool to get a well paying job in a big company at a very early stage. And, with a good salary automatically comes the desire to grow and stabilize financially. Moreover, this is the age where an individual would be able to leverage the advantage of the power of the compounding. This aspiration often leads to consulting a qualified financial advisor.
Extended family responsibility
Nothing is more joyous than the arrival of a new family member. It could be marriage and/ or the birth of a baby. This leads to enormous happiness, satisfaction and an urge to step forward to set a new milestone in financial terms. This urge always leads to contact a financial advisor who could redraw the financial plans as per the individual’s financial as well as life goals, such as, the purchase of a new house, children’s education and marriage, etc.
Higher education of children
In India, parents pledge to go to the extreme level to meet the financial goals for their children’s higher education. Education inflation is uprising to 16% y-o-y which means if a post graduation in MBA costs today around INR 10 lakhs, down the line after 20 years it would rise up to INR 1.94 crore. Therefore, it is necessary to engage a qualified financial advisor to design an effective financial plan which would meet all your financial exigency pertaining to your ward’s future educational needs & goals.
Dissatisfactory returns on tax saving financial instruments
Tax planning doesn’t necessarily assure you a better return on investments. Instead, it is an essential tool/ subset of your overall financial planning. Therefore, it is really important to analyze your personal financial goals and patterns by consulting with a qualified financial advisor who would help you achieve effective and better ROIs by redesigning a diversified investment portfolio.
Desire to invest in equity through stock market
Due to the availability of diversified financial instruments, every individual now has a choice of quantifying his/ her source of income. One of the tempting sources is entering into the stock market investments directly. Stock markets are highly volatile, but there is a false notion of earning handsome returns prevailing in the stock markets (especially with the beginners) – Buying Low, Selling High. This notion almost always leads to damaging consequences. Therefore, it is always advisable to seek for an expert help of a qualified financial consultant before investing in stock markets.
Improper time management of a diversified financial portfolio
It becomes cumbersome for an individual whose domain is not in finance to monitor a diversified financial portfolio by themselves. Even a minor negligence could cause major financial loss. To be on the safer side when it comes to personal financing of a diversified portfolio, it is advisable to have a financial advisor on board who would always keep a track on the regular progress and rebalance the portfolio from time to time based on the prevailing economic indicators.
Retirement not only comes with a lump some cash inflows, but with a lot of uncertainty too. All the money that you’ve contributed all these years to your PF, gratuity, etc. would suddenly reflect in your bank account. This is the most critical stage in life where an individual needs a regular return from his/ her investments to meet all the expences. Therefore, it is always better to seek for an expert intervention by consulting a financial advisor just before retirement in order to set an effective financial plan to diversify the investment scope which reaps better returns for senior citizens.