Good money managers know when to delegate, and when to seek expert opinion. So as the leader of your personal finances, you shouldn’t be afraid to consult a Certified Financial Guardian (CFG) when appropriate.
If you are still contemplating on associating with a CFG, here are 5 questions to ponder on…
All we want you to do is honestly answer the questions with a “Yes” or a “No”.
So, let’s begin…
- Do you need help tracking your monthly finances?—A Financial Guardian’s job is to help you achieve your long-term financial goals. And in order to do so, he would want to have a look at your Net Worth and Cash Flow Statements.
There are tons of free software such as Mint and Budget Pulse that can help you keep a track of your expenses. You may even record your expenses in a diary or an excel sheet. The idea is to record the expenses (even the small ones) daily diligently.
As Financial Guardians, since 1999, having catered to over 2,000 clients, we use an excel sheet to help our clients and investors keep a track of their expenses. You can download it here.
- You’re 54 and your goal is to have Rs 8 crore in your portfolio by the time you retire at age 60. So far you have accumulated Rs 3 crore. Should you consult a Financial Guardian?—The quick answer is Yes, you should. Who wouldn’t seek help of a professional when they are way short of achieving their financial goals?
But, before you quickly jump to this conclusion, here’s an analogy that can give you a different perspective…
Going by the same premise, would it be wise to consult a doctor when a life threatening disease has spread across your body? Wouldn’t it be a bit too late to seek help and expect the doctor to work his magic?
On the other hand, a regular annual check-up would have helped to detect the disease at the earliest and restrict its spread.
The same logic applies to your finances too!
Let’s go back to the main question and assess the situation…
In order to achieve the retirement corpus of Rs 8 crore in 6 years, you would need an annualised return of 17.76%, without any additional savings.
That’s quite ambitious given the time horizon to achieve the goal.
If you believe that you should consult a Certified Financial Guardian only when such situation arises, we request you to think again.
A Financial Guardian isn’t a magician nor can he/she predict the market movements. Unlike other stock market professionals who paint a rosy picture and boast of having conquered the stock market fluctuations, a Financial Guardian acts as a fiduciary.
A Financial Guardian would help you set realistic expectations and realign your goals with the accumulated corpus to help you live a peaceful and stress free retired life.
- You have invested in dozens of different funds. Your spouse has another set of accounts. You both contribute regularly. But you lost a considerable amount during the bear market. Should you consult a Financial Guardian?—A good Financial Guardian can improve a messy portfolio by analysing its risks and returns. He will be able to highlight unnecessary investments, and the fees and taxes you’re paying. You can pay for ongoing service, or you might get a one-time-only mutual fund investment review for a few thousand rupees.
- You have a lump sum to invest, and you’re thinking about buying an annuity. Should you consult a Financial Guardian?—Yes, immediately! An annuity is a lousy investment product offering paltry taxable returns of 3 to 6% p.a. But, insurance agents try to distort facts and paint a rosy picture.
There are investment products such as Monthly Income Plans, Senior Citizen Savings Scheme, and Balanced Mutual Funds etc. which can offer optimal returns during retirement. A Financial Guardian would be able to build a portfolio that is in sync with your financial goals.
- You want to retire early and volunteer to do good work abroad. Or go into business for yourself. The numbers don’t seem to add up, but you’re determined to find a way. Should you consult a Financial Guardian?—Oh Yes!
This new trend has been pioneered by millennials… the ones who have introduced the ‘start-up’ culture in India. They don’t worry about taking risks. It’s all about following their passions. For these youngsters working till 60, seems an old-age philosophy; ’45 is the new 60’.
And if you are a part of this new generation and plan to implement your new business idea, it is wise to assess where you stand today, financially.
You see, like all businesses, your business will not take off overnight and would require a few years to break even. In the interim, there will be EMIs and school fees to pay. A holistic financial plan designed especially for you, will help you focus on your business rather than the bills that you have to pay.
The list can go on.
So hope you recognise the need for a Financial Guardian who can professionally and prudently handhold you in the journey of wealth creation. Irrespective of where you stand in your finances, it is a wise decision to seek a second opinion.
You will be able to evaluate and choose a Financial Guardian here.
All the Guardians listed on the www.certifiedfinancialguardian.com have gone through an intensive program emphasising not only on the different areas of personal finance, but also on the importance and essence of developing a financial planning advisory based on the principles of ethics and integrity.
One such CFG is Mr Viran Patel, who holds the distinction of being India’s 1st CFG. He has over 15 years experience in the financial advisory space. Mr Patel had noticed that agents lack professionalism. Financial products are sold rather than advised. This impelled him to make a change and save investors from the clutches of such agents (who often mis-sell). To know more about him, click here.