Tuesday, December 4, 2012

Managing finances made easy with financial advisors

At school, most of us as kids dreaded math! It was a little horrifying working with numbers and the phobia that we developed way backs as kids could never really be overcome. Working with numbers requires a lot of logic. Especially in today’s times, it’s important because as we earn, we realize that money is not just numbers, but there’s a meaning behind those numbers. Due to our inability to comprehend the meaning behind those numbers, we hire financial advisors who can carefully assess our income, expenditure and lay our several investments schemes so that we may choose the one that can give us the best return on our investment.

Financial planning in India is really easy with financial consultants. They are well versed with every financial scheme, mutual funds, fixed deposits and various investment policies. Coupled with their experience in the field of financial advising and the educational background they possess, they become an ideal choice for managing our money. Getting a financial consultant to manage your money can be beneficial in many ways:

• It’s convenient: As working individuals, we really don’t have the time to make endless rounds of investment firms to seek out the best possible plan for us. Further, the paperwork and hassles related with the same can give us sleepless nights! Getting a financial advisor on board can help us ease the burden. They complete all the formalities and paperwork on our behalf, at our behest.

• Gives us a level of confidence: When we invest money without any prior background in the field of investment, there’s always a tension at the back of the mind. It’s the tension of risking and/or losing your money. It comes due to lack of experience and study in this particular field. However, under the careful guidance of a financial planner, we can be confident about our investment.

Before going in for a financial advisor, you need to know why you’re hiring him! There are a lot of reasons that make a financial advisor better than the rest.

• Trust: When you hire a financial planner, you’re giving away a lot of details about your personal life such as your income, family status, expenses etc. The person needs to be trustworthy so that your personal details are not compromised with. Make sure you inquire about the reputation of the advisor!

• Compensation: Financial planning india firms usually have two methods for compensation. The first one is commission basis, wherein they charge commission for every work and secondly, a lump sum based deal wherein you pay them a specified amount. A drawback with the commission one is that the advisor might sell you more schemes just to make commission.