Why You Need a Financial
Advisor?
B. Padmanaban, CFPCM
We are living in a materialistic world, often our
needs are influenced by our peer groups. We hardly spend anything based on our
real needs; most of our expenses are impulsive in nature and often regret that,
I should have avoided that after you bought something!
I often come across the individual who has a
better financial control those who earn Rs. 50,000 per month. Higher the
salary, the individual have very less control over their money.
When I checked the same with my advisor
community, they also expressed the same.
This clearly shows that you as an investor need
somebody like a CFO (Chief Financial Officer) to take care of your financial
well being.
Normally, CFO refers to big corporate; here you
can hire your CFO (your financial advisor) to take care of your personal
finance.
Challenges of an Investor..!
1. Many of the investors are highly impulsive,
when it comes to buy anything & everything.
2. Always contemplating whether I myself take
care of my investments by spending good amount of time or / I should seek some
professional to do that?
If you can concentrate more on your profession
and you will tend to grow and advisors can concentrate how to deploy your
investments in a much professional manner.
3. Your investments style is typically influenced
by your friends, family & colleague. Very rarely you understand what is
inflation & what is your investment return post income tax!
4. You often compare the value it has grown
rather than at what duration it has grown.
For example, many of our friends told us, I
bought a house in 2008 and now it is doubled. Doubling in 8 years is nothing
but your investment has grown to 9% CAGR.
Moreover you can not enjoy all the growth; there
will be capital gain & other statutory income taxes.
5. Many used to say that GOLD Prices have gone up
like anything. I do not think so, if you really want to cross check whether the
gold price has really gone up.
Check the day you started working and what was
the gold price at that time & what is your salary today and how much gold
you can buy today.
I am pretty confident that you can buy much more
gold than you started working.
6. EMI is nothing but you are enjoying something
well in advance, than you actually possess (full ownership).
Many thought that buying anything in EMI is the
smart way to do it. In reality, many will have EMI (all types of EMI) of more
60% of their earning, then how can one save money.
Last but not the least; it is not the question of
whether you can do something or / not.
Whether the work can be done by somebody else with
lesser cost so that I can concentrate, what am good at it!
For example, many car owners know how to drive in
spite of that, they have a driver because he/she feels his/ her time is more
precious than driving a car!
Role of Your Personal CFO..!
1. He/She controls all the above points and since
he/she is not emotionally connected to anything, he/she can always offer a
better solution than the individual is making.
2. More than doing something good, CFO will help
you to avoid all the mistakes you keep doing it, time and again.
He/she will create a discipline on your
investment behavior. This will have a huge positive impact on your cash flow.
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| B. Padmanaban, CFPCM. |
3. Many thought that, I am fully committed &
no money to invest, without understanding the leakages in his/her style of
spending.
When you sit & discuss with your financial
advisor you will discover more money to invest.
4. Investments are not emotional; it requires
time to understand, which is very much easier.
When we
are capable of studying so many things just for the sake of job why not we
spend very little time, which is very easy to understand the financial
products.
Unfortunately investors have no intention or /
inclination to know those thing, is the root cause for many financial problems.
5. CFO absorbs all the market volatility &
spending good amount of time to understand various investment products that
suits the client needs.
In fact the role of a CFO is nothing but buying
you a peace of mind which is the need of the hour!
P.S: When you travel with your financial advisor
your financial journey will be much smoother, than you ever imagine.
More importantly, he/she will help you to reach
your destination (all your financial goals) well ahead of time.
If a kid wanted to cross the road & he/she
should catch hold of their father’s / mother’s hands & the only believe for
the kid is he/she will take me to the other side of the road. But, if the kids
think in between, to cross the road why he/she is going 2 steps forward and one
step backward and one step side words.
Those traffics are at nobody’s control & if
you really worry about the traffic, you never cross the roads!
Like that in your financial journey, market
fluctuations are nobody’s control & if your financial goal is strong you
will not worry about that volatility.
Believe me Volatility is the way of life!
For more details
B. Padmanaban, CFPCM
Certified Financial Planner
98843 49173
Padmanaban Balasubramanian
Prosperity Coach, Certified Financial Planner, CFP, Chennai, India,
- Chennai Area, India
- Financial Services
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