X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
How Financial Guardians Can Help You Achieve Your Financial Goals - Outside View by PersonalFN
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

How Financial Guardians Can Help You Achieve Your Financial Goals
Feb 16, 2017

Most of us dream of what we'd like to become at a later stage in life or the things we'd like to do. When it comes to our money, these dreams must be translated into clear goals to employ the best way of achieving them.

Typical aspirations in the world of financial planning could range from funding your child's education to saving enough for a comfortable retirement. The key is to be realistic about what you think you can achieve, you're confident in your ability to win.

Whatever you plan to do with your money, a Certified Financial Guardian (CFG) could help you achieve your goals.

So what's so unique of a CFG?

  1. No sales obligation: A CFG shares his compensation model upfront. This approach builds trust and assures you as investors that a CFG has puts forth your interest in mind at all times. CFGs go a step further. They cement the relationship with clients by understanding their current financial health as well as the investment objectives before recommending any financial products.
  2. Protects you and your family: A CFG will ask you tough questions you may not have thought of: For example, "Have you saved enough for rainy day?", "Have you ensured the financial wellbeing of your family when you pass away", "Have you written a Will to pass on assets to your loved ones?" amongst a host of others. The idea behind is to make you rightly introspect to recognise the nuances of financial planning.
  3. Avoid costly mistakes, administration costs, investment fees, and taxes: These are some of the costs novice investors miss while planning their financial future. A CFG is aware of these and the impact on your financial goals. Therefore, they can prudently suggest an alternative course of action.
  4. Set time frames for your financial goals: Good financial advice helps you set and plan financial goals. A CFG will assess if your financial goals are S.M.A.R.T. (Specific, Measurable, Adjustable, Realistic and Time-bound) or are mere fantasies. Based on the time horizon to achieve it, he/she can classify the goals into short-term, medium-term, and long-term. This helps you maintain focus and channelize investments accordingly to achieve them.
  5. Prioritise financial goals: We all have multiple financial goals and all of them seem important to us. Planning for them can be a herculean task if you don't prioritise them. So, based on the urgency and the time horizon, a CFG can help counsel you to distinguish between: responsibilities, needs, and dreams.

    Children's education is a 'responsibility' that needs to be shouldered.

    Buying a house to live in and saving enough for a comfortable retirement are a 'needs'.

    On the other hand, wanting to own high-end luxury cars, or going on a world tour, could be a 'dream', which may be within reach (can be planned for) or beyond (cannot be planned for) based on a financial assessment.

    Your financial life will be stressful if you fail to slice and dice your financial goals well. A CFG looks at your plan objectively. They are rational, rather than emotional, which will help you immensely in the goal planning exercise.
  6. Reduce stress: Even with the best intentions, it's often hard to find enough time to create and manage a comprehensive wealth plan that will really make the most of your money. With a CFG to handhold, you can confidently tread on the path to wealth creation and financial wellbeing.
  7. Draw a prudent financial plan: A CFG possesses skills to draw a prudent financial plan to take better control of your personal finances and meet your aspirations vide a variety of investment avenues. This is intended to achieve the investment objectives and build the required goal corpus taking cognisance of your risk profile. Besides, he/she will periodically review the plan to ensure you're on course, make necessary corrections if need be, and even account for changing dynamics (a new member into the family, a medical emergency, an unexpected layoff, etc.). So through this agile approach there's enough goal mapping and goal tracking.
  8. Leave a legacy: A CFG will help you assist in prudent estate planning to make sure your family is financially secure when you pass away. Note that, if you die intestate (i.e. without a Will) the law of the land will distribute your assets in a manner which you may not have intended.
  9. Be empowered: A CFG with handholding at every point in time and by imparting financial knowledge empowers you as an investor, whereby you start taking conscious financial decisions in the interest of your long-term financial wellbeing.

Remember, sound financial advice, guidance and support can help make your dreams come true. To find a financial advisor whom you can trust visit www.certifiedfinancialguardian.com.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "How Financial Guardians Can Help You Achieve Your Financial Goals". Click here!

  

More Views on News

Tata Consultancy Services (TCS): A Decent Start to FY17 (Quarterly Results Update - Detailed)

Jul 14, 2016

Tata Consultancy Services (TCS) has declared results for the quarter ended June 2016. The company has reported a 3% QoQ increase in consolidated sales while the consolidated net profit was up 0.3% QoQ.

Tata Motors: A Profitable Fourth Quarter (Quarterly Results Update - Detailed)

Jul 8, 2016

Tata Motors Ltd has reported a 19% YoY and 202% YoY growth in sales and net profits for the quarter ended March 2016.

Idea Cellular: Interest Costs Hurt Profits (Quarterly Results Update - Detailed)

Jul 4, 2016

Idea Cellular has reported a 12.4% YoY growth in the topline and a decrease of 0.4% YoY in the bottomline for the quarter ended March 2016.

Swimming Against the 'River of No Returns' (Vivek Kaul's Diary)

May 27, 2017

You will be shocked by Bill's price target for Amazon...

10 Reasons Why You Should File Your Income Tax Return On Time (Outside View)

May 26, 2017

PersonalFN explains valid reasons why you should file your I-T returns on time.

More Views on News

Most Popular

New IIP Shows Demonetisation Slowed Down Indian Manufacturing Growth Big Time(Vivek Kaul's Diary)

May 16, 2017

The manufacturing growth between December 2016 and March 2017 fell to 1.6 per cent as against 6.9 per cent between April and October 2016.

Why We Skipped This 70% Gainer(The 5 Minute Wrapup)

May 18, 2017

Underreporting of bad loans by some private sector banks casts a cloud over the sector's clean image so far.

Just Like Before, the Market is about to Crash(Outside View)

May 17, 2017

Markets are at record highs. Fear is at record lows. How does this end? When does this end?

Double Your Money with Derivatives(Daily Profit Hunter)

May 19, 2017

Asad Dossani discusses how you can double your money with derivatives.

The Rise and Fall of Shilpi Cable Technologies(Chart Of The Day)

May 19, 2017

How Shilpi Cable lost over 70% of its market cap in one month.

More

S&P BSE SENSEX


May 26, 2017 (Close)

MARKET STATS