Every Companies Financial Planning

1. Every Companies Financial Planning ―If we could first know where we are, and whither we are tending, we could better judge what to do, and how to do it.‖ - Abraham Lincoin Planning is vital role of any management. Unless money works for you, you would be working for it. Personal financial plan helps you to chart out, clear road map to achieve your financial goals. Personal financial advice for physicians is comprehensive in nature. It deals with all aspects like Cash Flow, tax, Needs & Goals with Priorities, risk involved, your risk profile, time to goals, inflation, and risk management. Professional hand will help you on this. All Financial Planning companies are not offering same kind of services. Before you engage any person or company you should clearly know what services you need, what they can offer, cost, how they get paid by any means and their limitations. 1. Comprehensive Financial Planning Companies They assess each and every facet of your financial life—including cash Flow, Asset, Liabilities, saving, investments, insurance, taxes, Financial Needs & Goals, Risk profile, time to goals etc.—and create a customized financial plan with solutions and strategies towards achieving your financial goals. There are 3 categories in creating comprehensive financial planning for medical professionals: a) Fee-Only financial planners – They stop with creating Plan and do not execute the plan for commission to avoid conflict of interest. b) Fee Based Financial Planners – They Create comprehensive plan and execute as well. They charge fee for creating plan and get commission from manufacturer for execution. High chance of conflict of interest prevails in this model. As per SEBI rule, there should be an arm’s length distance between planning and execution teams. Individual RIAs are not allowed in this model. c) Robo – Advisors: – Robo-Advisors are automated software, decisions driven by analyzing your input with big data. It works with generic goals and risk profiles. Robos cannot necessarily consider all of the variables that apply to you like untold facts, investment ethics, belief system, non-financial personal issues and emotions. 2. Wealth Management Companies Most financial planners are investment advisers, but not all investment advisers are financial planners. Wealth Management companies are not financial planning companies. They manage your money by investing in one or more different asset classes like Direct Shares, currencies, commodities, Insurance, Mutual Funds, real estate, Private Placements, Debts, Overseas Assets, structured products, alternative investments, etc. They come with different names like, Wealth Management companies, Private wealth Management companies, Portfolio Management (PMS) Companies etc. Usually they share from profit (after pre-defined return) apart from regular fee onto the Asset under Management (AUM) in %. This is suitable only for HNIs and UHNIs who are done with their financial needs. 3. Distributors/Agents & Traders Most of these people are tied to one or more manufacturers /corporate. They usually deal with narrow range of products. Funny part is different title on their business card except salesmen, agent, distributor etc. It could read as widely as relationship Manager, Financial Consultant, Insurance Specialist, Private wealth Advisor, Financial Architect, Financial planner ….The difficulty with salesmen is that they are, in the end, just salesmen. Wealth Traits Financial Planners, No. 9, Maven Projects Centre, Dr. Thirumoorthy Nagar 3rd Sreet, Nungambakkam, Chennai - 600 034. info@wealthtraits.com / www.wealthtraits.com