Of all the things to have become affordable these days, the luxury of choosing not to invest is certainly not one of them. Nor will it be, if the experts are to be believed, for according to most economic pundits high inflation will be the norm for a while. And, as everyone knows, inflation simply eats up the value of traditional bank deposits. Simply put, young Indians have no option but to invest if they want to secure their future.
But there is another reason as well! Investments if made correctly, can create tremendous amounts of wealth thus paving the way for a prosperous future.
But how does one do so without spending time, which most people don’t have, studying the bewildering world of finance?
Enter the financial planner!
What is that? Well you might compare him or her to a dietician – someone who is professionally trained and to whom one goes to for advise. Very often they can dispense valuable advise and with good results too! But then again, we always remember that a dietician is no doctor and that his knowledge while probably correct is never absolutely true. Ultimately its our call and our judgement that matters.
The same is true for financial planners as well. They are trained experts in field of investment and finance who will give tips and advise to help you manage your portfolio better. They do that by aiming to maximize growth, managing risk and limiting liability.
When a client approaches them, they elicit the necessary financial details. The client must not only decide on the amount of money and at what points of time they can be invested, but also spell out clearly to the financial planner what his or her financial objectives. The financial planner will then take all of this into account and help their client draw up a financial plan. A sound financial plan will help you avoid pitfalls in investment, make incredible tax savings, provide for insurance and retirement funds and estate planning.
But what’s the trick to getting the right financial planner and therby the right financial plan.
Well there are a few commonsensical things to do. You can check on the person’s credentials and background, but also ensure that the person has a good track record. So invest and Invest wisely, and enjoy a prosperous future.
