3 Questions to ask your Financial Advisor
.png){kind=logo}
A good Financial Advisor helps you stay on track with your financial goals, manage risks, and optimize your investments. This blog highlights three essential questions to ask your advisor—ensuring your finances are well-planned, protected, and free from underperforming assets. Read on to make smarter financial decisions and secure your future.
A good Financial Advisor plays a critical role in your fiscal wellbeing, much like a physical trainer does with respect to your health! Chosen wisely, a good Financial Advisor can ensure that you avoid common money-related pitfalls, ensure that your key bases are well-covered, and see to it that you’ve got the right amount of money available at the right time. Here are three questions you need to ask your Financial Advisor – today.
Am I on Track to Achieve my Goals?
The merits of Goal Based Financial Planning have been well documented. Simply investing money on and off, in an ad hoc manner, will have very limited efficiency in the long run. Your Financial Advisor should be able to help you set up a robust goal-based Financial Plan, which is both realistic and challenging, and which details your meaningful life-milestones. If you’re currently off-track, your Financial Advisor can advise you on the necessary course correction measures to take; which may include cutting lifestyle spends, saving in more aggressive assets, or other action points.
Am I Adequately Covered on the Risk Management Front?
Risk Management is an oft-ignored aspect of Financial Planning. As Human Beings, we tend to nurture the belief that low probability outcomes (such as an accident, a serious illness, or even premature death) can only happen to “other people”. As a result, many people end up getting wiped out when catastrophic events occur in their lives. Ask your Financial Advisor if you’re adequately covered in terms of Term Coverage and Health Insurance Coverage. Go a step beyond and understand if your specifics dictate the need for other coverages such as critical illness or personal accident.
Do I Have ‘duds’ in My Portfolio?
As the years roll by, it’s quite common for investors to pile on ‘duds’ in their portfolio. These investments will likely never go on to create value in their lives – a poor stock pick, an opaque life insurance plan, or even an NFO that never really took off. Collate a comprehensive list of all your holdings and put your Financial Advisor to work to weed out the ones that require pruning.
Your Investing Experts
Relevant Articles
Your Child’s Education Goal: A Step-by-Step Investment Guide
Every parent wishes for a bright and secure future for their child, and that includes a quality education. Achieving this goal requires advanced and proactive planning to ensure you’re financially prepared to support your child’s aspirations. In this article, we will explore why it is important to plan for your child's education and some best practices for the same.
.jpg)
Top Wealth Management Strategies for Long-Term Success
The goal-planning process, like a retirement fund, has two important aspects: Wealth creation and wealth management. During your working years, you create wealth by building a retirement fund. During the retirement years, you manage the wealth created so that it sustains you during the retirement years. In this article, we will understand what wealth management is, how it differs from wealth creation, and the best wealth management strategies.
A Step-by-Step Guide to Personal Financial Planning
Some individuals follow a return-centric approach to investing. They chase returns by selecting mutual funds based on the last one and three-year returns. However, that is not the right approach. The appropriate approach is to identify your financial goals and invest towards fulfilling them. It keeps you focused on your investments for the long term till the goals are achieved. The personal financial planning journey can help you map all your financial goals, invest towards them, and review them till they are achieved. In this article, we will understand what is personal financial planning and how to go about it.