Today all websites tell you that you are just not competent to manage your own money. This is followed by a corollary saying ‘therefore you NEED a financial planner’.
Be that as it may, assuming you have a financial planner, what are the questions that you should be ASKING him….and then hope that he answers them straight.
1. Why are you in this business / profession: Does he say ‘just like that’ or does he say ‘I did not get any other job’ or is he there because he wants to help people go towards their life goals…?
2. What is your qualification to do this business: learn a little about the various qualifications…please remember most of the titles are self taken! CA, MBA, CFP, ….are relevant.
Caveat: I know planners WITHOUT these 3 qualifications and who do a good job.I also know people with some of these qualifications who do a bad job.
3. What other professional training / courses have you done?
4. How many years experience do you have? – it is not to say that longer the better, but you really do not want to go to a guy with no experience, right?
5. How do you stay current on the Income tax laws, and other laws that keep changing regularly?
6. How much is your understanding of equity markets, debt markets, mutual funds, and insurance?
7. How are you going to be compensated for all this effort that you are taking? Will I pay you a fee or will you sell me products and earn a commission from that? Or is it a combination of the 2?
8. How will you decide on my asset allocation pattern and what will you do if I get a lump sum?
9. How will you help me keep track of my investments and how often will you suggest changes? And what will be the trigger to make the changes, if any?
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