Why You Need A Financial Guardian For Your Finances...     (09-Jan-2017 )



Before we delve deeper into the topic, let us define a financial guardian…

An accredited Financial Guardian is someone who uses the financial planning process and instruments to help you figure out how to accomplish your life goals. S/he not only takes into consideration your financial goals, needs, risk appetite, and exercises such as budgeting, investments, tax planning, but also recommends  financial solutions with your best interest in mind every time. This approach sets a Guardian apart from other financial advisors, who may be trained to focus on a particular area of your finances. 

A Guardian who stands for ethics, integrity and putting your interest first, at all times.

An individual who does not follow this approach is not a Financial Guardian, merely a product distributor.

One may say, “But why can’t I do my own Financial Planning instead of approaching a Guardian?

Of course, you can! Actually, there are quite a few personal finance websites, magazines, and self-help books educating countless investors in the art of money management. However, here are some questions you need to answer before deciding whether you need a Financial Guardian or not:

  1. Do you follow a strict budget? — Most individuals tend to spend before they save. Are you one of them? The mantra to follow is: Income – Savings = Expenses. But if you are honest with yourself, you’ll agree that there is hardly any money left to save at the end of the month. In fact the money seems insufficient to even meet your monthly expenses.
     
  2. Are you saving for your future? — Probably the answer is a quick “yes”. In fact statistics show that Indians are far better at saving their money vis-à-vis other developed countries. If you are like most individuals, savings is what is left after meeting your expenses, put aside either in a fixed deposit scheme or gold or an insurance policy which were suggested by your friendly neighbour (who happens to be an insurance agent). Capital protection and guaranteed returns rank higher as parameters that you should astutely consider before you invest your hard earned money; don’t you think? But take a moment here and seriously consider if the amount that you are saving would help you achieve your financial goals—educational expenses of your children, marriage expense when they grow up, building a retirement corpus that lasts your lifetime, etc. If you don’t know the answer, dial HELP immediately.
     
  3. Do you believe that Insurance is an investment product?—If the answer is “yes”, then you need to seriously consider approaching a financial guardian. Insurance is a financial instrument meant to protect against risks. It is not an investment product as some may have you believe.
     
  4. Do you know how to choose a financial instrument?—There are a number of financial instruments available today in India. And they can be complex, confusing, and intimidating. What is your approach for choosing a particular financial instrument? Do you rely on magazines, periodicals, television shows, and well-meaning friends and neighbours to make a decision? If “yes”, then think again! It is high time to get your portfolio reviewed.
     
  5. Do you have a plan for the falling markets?—Planning during the bull phase is easy and an ideal situation that we all like to be in. But, life isn’t all sunshine. There will be days when the stock market will crash (remember the 2008 crash?) and erode a huge chunk of your hard earned money. Are you prepared for it? What’s your PLAN?
     
  6. Do you look beyond real estate, gold and fixed deposits?—Do you still consider that the only way to build wealth is through real estate, gold savings, and fixed deposits? Have you invested a major chunk of your finances in these three instruments? If “yes” then you need to consult a Financial Guardian, NOW!
     
  7. Do you have a succession plan in place?Do you have a Will? Or do you think this job is best left till your hair turns grey? Or are you the parents of special needs child? Have you written down a Trust Deed? If “no” then consult a Financial Guardian at the earliest. Note, if you die “intestate” (i.e. without a Will) the prevailing “law of the land” will apply and your money will get distributed in the manner that you may not have wished for.

The list can go on.

So hope you recognise the need for a Financial Guardian who can hand hold you professionally and prudently 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 a 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.

Share |




Post Comment

:
   
 
 
  
   
:
:
:
* Comments are moderated by PersonalFN, in accordance with the Terms of Use, and may not appear on this article until they have been reviewed and deemed appropriate for posting.
      

Quanutm Information Services Pvt. Ltd. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of PersonalFN is strictly prohibited and shall be deemed to be copyright infringement.

Disclaimer: Quantum Information Services Pvt. Limited (PersonalFN) is not providing any investment advice through this service and, does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. All content and information is provided on an 'As Is' basis by PersonalFN. Information herein is believed to be reliable but PersonalFN does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. PersonalFN and its subsidiaries / affiliates / sponsors or employees, personnel, directors will not be responsible for any direct / indirect loss or liability incurred by the user as a consequence of him or any other person on his behalf taking any investment decisions based on the contents and information provided herein. This is not a specific advisory service to meet the requirements of a specific client. Use of this information is at the user's own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. All intellectual property rights emerging from this newsletter are and shall remain with PersonalFN. This is for your personal use and you shall not resell, copy, or redistribute this newsletter or any part of it, or use it for any commercial purpose. The performance data quoted represents past performance and does not guarantee future results. As a condition to accessing PersonalFN’s content and website, you agree to our Terms and Conditions of Use, available here.