Why Financial Planners asking you to pay them?
Financial planning is an integral part of everyone’s life. We plan in a way or other for our future. Every father wants his son to be in a better position than him in all aspects. He will plan for this. But Do we really need financial planners to do our financial planning? If so, Why should Financial Planners ask charges for investing my hard earned money? This is the general perception of the people. Here comes the answer.
Who are Financial Planners in India?
Not one or two, there are many financial planners like the one who is selling insurance policy, a friend who asks us to invest in a mutual fund and it goes on. Am I Right?
You have fever. One of your colleagues suggests you to take a Paracetamol. Will you call him a docor?
Any one suggest a normal remedy normal problem. That doesn’t mean they are experts in that field and what they are saying is right. The fever may a viral fever or it may be a symptom for some other serious disease which your colleague may not aware of.
In the same way, Financial Planning is also a process which needs professional assistance. But in India, we don’t take financial planning seriously. For us, a person who is suggesting something related to finance is a financial planner.
In reality, financial planner is a person who receives sufficient information from you, analyse your financial situation, helps you to understand the financial products and suggests you the best possible solution.
Why we hesitate to pay for Financial Planners in India?
As mentioned earlier, we are investing our hard earned money. Why should we pay to a person for this?
My insurance agent asks me to invest and nothing more.
As you understood who is a financial planner, now you know that your insurance agent may not be a professional. He may suggest you a best policy, but he may not be able to suggest you a best solution for your secured future. But remember, he may get huge commission for your policy. That is why he is not asking anything from you. This means you are paying for your investments in a way or other. It is up to you to choose wisely.
How much I should pay?
By this time you have understood why should you pay your financial planner. But how much you should pay is an important question to be answered now.
If your financial planner is an Independent Financial Planner, he will suggest you the plan and he will charge for the advice given by him. You may execute that plan by yourself or the same financial planner may execute the plan on your behalf for which he may earn commission. The point to be noted here is, an Independent Financial Planner, charges for his advice and he may not do the execution part. Which means the financial planner will suggest you the best product and not the product which gives him huge commission.
You are the one to select the best for the future. If you are really interested in creating a better future through financial planning, you can take advantage of our 30 min FREE financial consultation by clicking the button below.