You might think that you will be able to do what a financial advisor does. After all, in 2019, when everything is available at the click of the button, how can a certified financial planner or IFA bring any value to you in the present circumstances?
Yes you can manage your money and know all the nuances and basics of investing but knowing isn’t everything. Managing your money and financial planning is less about numbers and more about behaviour. And is where many investors get it wrong.
They are trained to manage your money and to make sure that you fulfil your financial goals.
If you are a first time investor, you will love the ease and convenience of having a financial advisor. You can either pay for their services or they will get a commission from your investments. Finding a IFA near you is extremely easy. All you need to do is type ‘financial advisor near me’ or ‘financial planner near me’ and you can see a list of financial planners near your place. If your friend or colleagues are taking help of a IFA, you can also take their services.
Financial planning is nothing but setting goals and craving out a path to make your dreams a reality. You may have many financial goals and it may be little difficult for you to figure out how to go about it. A IFA will help you to plan for your financial goals. Also, they will also analyze your financial position and risk taking capacity, and give investment suggestions. A financial advisor will monitor your goals and give you timely updates. This will help you to reach your goals within the time frame.
Planning for financial goals may seem like a piece of cake when compared to helping you to ignore the noise. Many investors are not able to fulfil their financial goals because they succumb to the temptations that come in the form of news or suggestions from friends. Ignoring the news and focusing on the goals, like the Arjuna, is hard work and takes a lot of discipline. And this is what makes the role of certified financial planner very important.
Markets will go through a series of ups and downs. And not just the market, your own behavior will rise and fall with the market. From ecstatic when the market is going up to hopeless when it is going down.
When you are planning to do something based on the current scenario, your IFA will talk you out of the rash decisions. They will help you to focus on your financial goals and ignore market noise.
You might believe that you can do your own research which will be equivalent to what an IFA will bring to the table. However, a certified financial planner gathers his market research from various sites and subscriptions which are not available to the general public. They also regularly meet the fund managers of the funds to understand their investment philosophy. This helps them to suggest the right investment products to you.
This point is true for high net worth individuals (HNIs). These investors are always looking for new investment avenues that can help them to multiply and protect their investments. HNIs hire a financial advisor so that they can spot investment opportunities and get the first mover advantage.
To summarise, IFAs make our life a little bit easier for us. They are there to monitor our portfolio and suggest the best for us while we focus on our careers and other aspects of our life.
Tags: financial advisor, finacial goals, ifa