Companies That Need Financial Planning

1. Companies That Need Financial Planning Financial planning companies help you plan your finances professionally. It’s very important to know whom you are dealing for the solution. Most peoplegetting confused with Financial planning Vs Wealth Management Vs Execution Services Vs allied personal financial services. So many companies exploit customers just using the names but concentrate on different set of services. Financial Planning: Financial Planning companies can make a real difference in your life through comprehensive financial planning which captures all pieces of your financial life and lays out road map to achieve your financial goals. As stated earlier, don’t go merely with the company name or self-proclaim. Ask for the credentials like education, practice registration number, compliance redressal mechanism. No Compromise on credentials, check at once. CFPs, CFAs with SEBI Registration are ideal. In India Only SEBI Registered Investment Advisors only can give advice and make comprehensive medical and dental financial planner.Advisory must be in records/writing. They must establish Fiduciary care (Acting on Clients interest). As per SEBI (Regulator) guideline planner can’t insist on executing through their own execution wing or X or Y. Individual Licensee barred from selling (Getting any remuneration from manufacturer for execution). There are few exceptions limited to incidental advisory like your tax consultant (CA) can recommend you to invest in Tax beneficial investments, not more. Operating Model and Fee Structure: It’s importance to understand their offers and fee models. 1) Fee - Only: Flat Fee, Hourly Fee, Subscription fee, % on Asset under Advisory, Performance based fee. 2) Fee-Based: Any one of the Fee-Only model plus Commission/Brokerage In big institution promoted financial planning, your access to the financial planner for doctors one-to-one is limited. They work from central office with the input given in a standard format. Most of the corporates work in fee based model. They charge fee for Plan and get commission from the manufacturer for execution (sales). There is a high chance of conflict of Interest here. DIY Platforms & Robo - Advisors: It’s software, Glorified calculator. No human interface. It runs goal cost Projection calculates Future value of the goals by assuming return, inflation, life expectancy etc. It throws out schemes based on the risk profile score. It monitors numbers to take client from point A to Point B. It’s a low cost solution to HNIs and for self- learners with strong self-emotional management capabilities. Rest of the Companies: Except SEBI registered Investment Advisor or Research Analyst fall under this category. Registered for any other categories can’t advise. Some stock brokers show their SEBI’s broker license and take gullible people for granted. Final Words: If you don’t want to fall in wrong hands, check the credentials and get only the written plan/advisory for fee. How and whom through you are executing should be your call. If registered advisor has robust execution system, caring support staff and solid grievance mechanism you can go in for execution. Never get advisory from execution channels. Wealth Traits Financial Planners, No. 9, Maven Projects Centre,Dr. Thirumoorthy Nagar 3rd Sreet, Nungambakkam, Chennai - 600 034. +91 900305599, +91 9445518009 info@wealthtraits.com / www.wealthtraits.com