- 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.
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.
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