Before we deep dive further to understand why do you need a financial planner, answer this question. While going on a flight or a train, did you ever go to the pilot or loco driver and said that you today you will be in the cockpit or run the train? It’s no point waiting for your answer. These are the specialist jobs & you aren’t trained for them. Similarly, when it comes to financial planning we all think that since we earn money, so we know how and where to park it for future use.
But, hold on, this is far from reality. Earning and managing money are two altogether different aspects. You need a specialist as it’s a complicated world and he is called a certified financial planner. Financial planning is not as simple as it seems. Sound financial planning and a certified financial planner are the same sides of a coin! So let’s understand how a financial advisor in jaipur helps you with financial planning?
Helps you in setting your financial goals
Depending on your financial income, age, and requirements; there are three types of financial goals-Short, Medium, and Long term. Similarly, the requirements can be of an individual or family. For instance, your vacation plan can be a short or medium-term goal, the education of your child is a long term plan. Financial Planner helps you in deciding your goals and also assist you in revising them according to your requirements.
Educate you on risks and rewards of various financial options
There are hosts of financial options available. To name a few are fixed deposits, stocks & bonds, Insurance products, and Mutual funds. For instance, a certified financial planner will always guide you to go for SIP as it is a wonderful tool for maximizing returns in the long term. He has read & analyzed the financial market and knows the importance of SIP and mutual funds.
A good financial advisor is well versed with all the options available. He understands that which financial products will suit your particular goal. With his knowledge, he does the financial planning and analysis of your portfolio
Helps you in selecting the right investment portfolio
The financial planner is adept in portfolio management service. In other words, he does asset allocation. Let’s understand this by an example. You have 10 years to get your daughter married & you are not clear whether to invest in equity or in debt. The intelligent financial advisor will always give you a solution that is in consonance with market conditions. He may advise you that up to 8 years, you park money in equity and for the next two years, in the debt.
Saves your time
This is the world of specialists and one becomes specialists with years of practicing. A financial planner saves a lot of your time. He has put her number of years in learning financial markets and products that can give you higher returns. He has developed financial wisdom to share with others. Therefore, be wise; leave it to the financial advisor to decide on your behalf.
Monitors portfolio and interprets the performance
Your portfolio typically consists of following investment options- Real Estate, Precious Metals, Stocks, Bonds, Fixed Deposits, and Mutual Funds. Since the market is dynamic, so are these options and as a result, the returns vary. Hence it becomes imperative that your portfolio is reviewed regularly. Financial Consultant’s prime objective is the portfolio management service in Jaipur. He keeps a tab on it and fiddles with it as per the need so that the risk is minimized, investment is diversified and returns are maximized.
Saves you from making emotional financial blunders
This can be understood from a very simple example. Let’s say you have invested through SIP an ‘X’ amount of money in the pension funds for your later years. After two years, you realize that the market behaved badly and your net fund value has become negative than what was invested. Out of desperation, you would withdraw the entire amount and hope for a fixed return, you park the same in fixed deposit.
The financial advisor would stop you from making this decision as he knows that in fixed deposits the rate of interest would slide further and insist you keep investing in a pension fund or opt for some other financial products. Thus, he saves you from making such blunders and your money too.
Summary
The financial planner is your friend in a true sense as she makes you financially sound by taking care of your finances and investment & help you realize your financial goals. Whilst, you leave at her discretion to make a financial investment decision, you also learn the basic nuances of financial planning.
Learn to have patience, be willing to take a calculated risk, and believe that in life the purpose of money is not just earning but investing wisely spending prudently and enjoying it fully. Therefore friends, enjoy the flight or train journey and leave it for the pilot or loco driver to take you to your destination.
Original Source: https://www.mftoday.com/when-it-comes-to-investment-why-do-you-need-a-financial-planner/
