Important Details That You Must Share with Financial Planners Once You Hire Them

Financial Planners

Be it creating an overall long-term investment strategy or planning for specific goals viz. retirement etc., professional services are now available to help you plan for all your financial goals. If you are seeking to hire a professional financial advisor, read this post to know five most important details that your advisor should know about you.

For many people, financial planning is not a very well-known concept – it is far more than ‘trying to manage your monies better’. Financial planning is a structured approach to draw up an overall plan that takes into account your aspirations/life-goals and calibrate it on an ongoing basis vis-a-vis constantly-evolving circumstances – both, in the financial markets, as well as your personal financial situation. Whilst most people want to do this, a majority do not know where to begin.

Hiring a professional financial advisor is an effective way to manage your finances such that they help you achieve your goals. Whether you want to manage your savings better, earn better returns from your investments or plan your retirement, a professional financial planners can help you do all of this and more.

To enjoy a fruitful relationship with your financial planner, it is imperative for you to share important details with the him/her. Here is a list of five essential things that your advisor should surely know about you-

  1. Your aspirations and dreams

Giving yourself the best chance of achieving your aspirations/life-goals is a good reason to hire a financial advisor as it helps to have a structured plan to achieve them. It can be as simple as buying a new car after a year or two, or even something big like starting your own business after retirement.

Whatever your life-goal is, share it with your financial advisor to help him come up with a plan that makes it a reality. Besides creating a plan that is fully customized to your circumstances, they can guide you how you can save more, help you earn better returns from your investments, advise you on how to create additional income streams, insure yourself against potential risks etc., all of which takes you closer to your life-goals.

  1. Your priorities

Our financial priorities keep changing throughout our lives depending on our life-stage and current set of circumstances. We have lesser responsibilities when we are in the 20s, but things change considerably when we are in our late 30s and 40s. Understanding your priorities and sharing them with your advisor would help them make the necessary adjustments in your financial plan and help you live a more financially stable life.

While other issues get considered as well, the primary focus of a financial advisor’s service will revolve around your most important financial concerns and priorities.

  1. Your current financial situation

Your financial advisor should know your current financial condition to build a customised plan that works for you. From account statements, tax returns, to your investments, you should share as much detail about your financial situation as possible, to help the advisor help you manage your money better. Be totally open about your liabilities, as much as the assets and savings you have.

  1. Your earnings

The advisor should know how much and how you earn your income, to be able to guide you correctly. It is only when they know how much you earn, and from where, that they can work on a strategy to help you achieve your overall financial objectives.

Ensure that you are factual about your earnings and share very detail with them so they know the quantum and nature of your cash inflows. You can rest assured that a good financial advisor would ensure that all your information remains completely confidential.

  1. Your retirement plans

Life after retirement should ideally be the best part of your life since you’ve worked hard for long and earned the right to live comfortably post your working life. Remember,whatever you plan to do after retirement, your financial condition will play a crucial role in enabling this. Thus, it is better to start planning for your retirement as early in your life as possible to enjoy a financially stable retirement.

A good financial planner urges you to think and plan your retirement even as he/she helps you discharge your other responsibilities / achieve other life-goals,and makes sure that retirement planning remains one of your top priorities, irrespective of your current age.

Having a professional financial advisor to help you at every step of your life can make the journey easier and more rewarding. Make your financial advisor privy to all the things discussed in the post to help him/her provide you with the best of service.

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