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.
5 Reasons Why You Should Avail The Services Of A Financial Guardian - Outside View by PersonalFN
  • MyStocks

MEMBER'S LOGINX

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

5 Reasons Why You Should Avail The Services Of A Financial Guardian
Mar 2, 2017

Good money managers know when to delegate, and when to seek expert opinion. So as the leader of your personal finances, you shouldn't be afraid to consult a Certified Financial Guardian (CFG) when appropriate. If you are still contemplating on associating with a CFG, here are 5 questions to ponder on...All we want you to do is honestly answer the questions with a "Yes" or a "No".So, let's begin...

  • Do you need help tracking your monthly finances?-A Financial Guardian's job is to help you achieve your long-term financial goals. And in order to do so, he would want to have a look at your Net Worth and Cash Flow Statements.

    There are tons of free software such as Mint and Budget Pulse that can help you keep a track of your expenses. You may even record your expenses in a diary or an excel sheet. The idea is to record the expenses (even the small ones) daily diligently.
  • You're 54 and your goal is to have Rs 8 crore in your portfolio by the time you retire at age 60. So far you have accumulated Rs 3 crore. Should you consult a Financial Guardian-The quick answer is Yes, you should. Who wouldn't seek help of a professional when they are way short of achieving their financial goals?

    But, before you quickly jump to this conclusion, here's an analogy that can give you a different perspective...

    Going by the same premise, would it be wise to consult a doctor when a life threatening disease has spread across your body? Wouldn't it be a bit too late to seek help and expect the doctor to work his magic?

    On the other hand, a regular annual check-up would have helped to detect the disease at the earliest and restrict its spread.

    The same logic applies to your finances too!

    Let's go back to the main question and assess the situation...

    In order to achieve the retirement corpus of Rs 8 crore in 6 years, you would need an annualised return of 17.76%, without any additional savings.

    That's quite ambitious given the time horizon to achieve the goal.

    If you believe that you should consult a Certified Financial Guardian only when such situation arises, we request you to think again.

    A Financial Guardian isn't a magician nor can he/she predict the market movements. Unlike other stock market professionals who paint a rosy picture and boast of having conquered the stock market fluctuations, a Financial Guardian acts as a fiduciary.

    A Financial Guardian would help you set realistic expectations and realign your goals with the accumulated corpus to help you live a peaceful and stress free retired life.
  • You have invested in dozens of different funds. Your spouse has another set of accounts. You both contribute regularly. But you lost a considerable amount during the bear market. Should you consult a Financial Guardian?-A good Financial Guardian can improve a messy portfolio by analysing its risks and returns. He will be able to highlight unnecessary investments, and the fees and taxes you're paying. You can pay for ongoing service, or you might get a one-time-only mutual fund investment review for a few thousand rupees.
  • You have a lump sum to invest, and you're thinking about buying an annuity. Should you consult a Financial Guardian?-Yes, immediately! An annuity is a lousy investment product offering paltry taxable returns of 3 to 6% p.a. But, insurance agents try to distort facts and paint a rosy picture.

    There are investment products such as Monthly Income Plans, Senior Citizen Savings Scheme, and Balanced Mutual Funds etc. which can offer optimal returns during retirement. A Financial Guardian would be able to build a portfolio that is in sync with your financial goals.
  • You want to retire early and volunteer to do good work abroad. Or go into business for yourself. The numbers don't seem to add up, but you're determined to find a way. Should you consult a Financial Guardian?-Oh Yes!

    This new trend has been pioneered by millennials... the ones who have introduced the 'start-up' culture in India. They don't worry about taking risks. It's all about following their passions. For these youngsters working till 60, seems an old-age philosophy; '45 is the new 60'.

    And if you are a part of this new generation and plan to implement your new business idea, it is wise to assess where you stand today, financially.

    You see, like all businesses, your business will not take off overnight and would require a few years to break even. In the interim, there will be EMIs and school fees to pay. A holistic financial plan designed especially for you, will help you focus on your business rather than the bills that you have to pay.
  • The list can go on.

    So hope you recognise the need for a Financial Guardian who can professionally and prudently handhold you in the journey of wealth creation. Irrespective of where you stand in your finances, it is a wise decision to seek a second opinion.

    You will be able to evaluate and choose a Financial Guardian here.

    All the Guardians listed on the www.certifiedfinancialguardian.com have gone through an intensive program emphasising not only on the different areas of personal finance, but also on the importance and essence of developing a financial planning advisory based on the principles of ethics and integrity.

    One such CFG is Mr Viran Patel, who holds the distinction of being India's 1st CFG. He has over 15 years' experience in the financial advisory space. Mr Patel had noticed that agents lack professionalism. Financial products are sold rather than advised. This impelled him to make a change and save investors from the clutches of such agents (who often mis-sell). To connect with him, click here.

    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 "5 Reasons Why You Should Avail The Services Of A Financial Guardian". Click here!

      

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 18, 2017 (Close)

MARKET STATS