Executive Summary- A financial advisor helps the client to develop a comprehensive financial plan. You can get the best of his advisory services if you collaborate with him as one players of one team. You can give him updated relevant information and get regular reviews of the investment portfolio, You should shy away from asking questions about investments when you do not understand and get his support in estate planning, Last but not the least a pleasant rapport always ensures better advisory services.
A financial advisor works with his clients to develop effective financial plans. The financial advisor
- Helps you getting your finances in order.
- Advises you on various aspect of financial decisions that you make.
- Provides guidance so that your financial goals are achieved.
- Supports in the tasks related to financial planning too like filing of taxes, Insurance related tasks, documentation etc.
All of us like to get the maximum value from the products we utilize and services that we employ. How can you maximize the value from the advisory services of your financial planner –
1) Collaborate with the advisor – You and your advisor are on the same team. You both have the same goals related to optimum return on investments and growth of wealth. You have to communicate appropriately with him. You need to give him all the relevant information. Hiding financial information like a big debt or poor investment choices will cause an imbalance in the portfolio. At the same time, get a detailed understanding of how he is going to manage your portfolio. He should keep you involved in the investment decisions and give you a regular update whether its positive or negative. If you do not get an update, ask for it without fail. This will make sure, he is up to date with your portfolio.
2) Do not be Afraid to Ask – If you cannot understand what he is saying in a financial review meeting, you have to stop him and tell him to make you understand. There is nothing wrong in saying ‘I didn’t understand’ even if you are an MBA from a top notch school and the Vice President in a large company. Asking questions will aide in learning something new.
1) Collaborate with the advisor – You and your advisor are on the same team. You both have the same goals related to optimum return on investments and growth of wealth. You have to communicate appropriately with him. You need to give him all the relevant information. Hiding financial information like a big debt or poor investment choices will cause an imbalance in the portfolio. At the same time, get a detailed understanding of how he is going to manage your portfolio. He should keep you involved in the investment decisions and give you a regular update whether its positive or negative. If you do not get an update, ask for it without fail. This will make sure, he is up to date with your portfolio.
2) Do not be Afraid to Ask – If you cannot understand what he is saying in a financial review meeting, you have to stop him and tell him to make you understand. There is nothing wrong in saying ‘I didn’t understand’ even if you are an MBA from a top notch school and the Vice President in a large company. Asking questions will aide in learning something new.
3) Update Update and Update – Set up a schedule to get a regular update on your portfolio. It an be different for short-term and long-term. You should also give him an update whenever necessary. Changes in financial goals, emergencies in the family, financial trouble, significant increase or decrease in income/wealth have to be shared. There is no need not tell him all the details but good to inform him the extent of changes in financial situation. He can then review your portfolio and update it appropriately.
There is nothing wrong in questioning if the portfolio is not performing as per the benchmark. It is your money and you have a right to know. It will keep him on his toes and provide proper service.
4) Estate Planning and Will Making – Estate planning is an important task. You need to be clear as to what is to be done with your wealth when you are not around. Get help from the financial planner to plan your estate. The estate plan should not only include what is to be given to whom in case of your death. He should help you
There is nothing wrong in questioning if the portfolio is not performing as per the benchmark. It is your money and you have a right to know. It will keep him on his toes and provide proper service.
4) Estate Planning and Will Making – Estate planning is an important task. You need to be clear as to what is to be done with your wealth when you are not around. Get help from the financial planner to plan your estate. The estate plan should not only include what is to be given to whom in case of your death. He should help you
- Include instructions regarding finances in case of disablement or severe sickness.
- Plan for taking care of minor children and dependents with special needs
- Transfer/Sell Business in case of retirement, disablement or death with minimum disruption to business and costs
5) Be Nice – People like being called by their name. They like a smiling face and respect. Engage with your financial advisor in a positive way and be rewarded with better service.
You are getting the best from your financial advisor if apart from managing your investment portfolio, he is able to tell you how much risk you can take, educate you about your investments, determine the amount you need to retire and maintain a proper balance in your investment portfolio.
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