Like everyone else on this planet, even you have some aspirations and dreams. If you examine closely, all your dreams might require monetary assistance. Right from funding your child’s higher education so that he can become a doctor to buying a home, traveling around the world with your family to buying a swanky vehicle, everything requires money. Financial planning is a process that can help you achieve all your dreams. Proper planning allows you to spend wisely, save enough, and invest cleverly! At the end of the day, when you make three wise decisions like these, your net worth is bound to increase.
A personal financial planning company is the best place to go for advice. However, there are few things that even they might not share with their customers! Let’s see what those 7 things are –
1. Abiding by the fiduciary: These days, every financial advisor who is registered with the organization governing them is made to swear by the fiduciary. It states that they will put their clients’ interest above their own. However, if the financial advisory services or the financial advisors belong to the old school, chances are that they would never have taken this oath.
2. Telling you if they have been in trouble: It is quite common to see a client lodging a case against his financial advisory service or the financial advisor in case the former thinks he has been conned or misinformed. However, your financial advisory/advisor won’t tell you if they have ever been at the center of such a case! You will need to do your own research by typing the name of financial planning company on Google or other forums.
3. The truth behind commissions: Do you know, certain financial advisors who work for a specific firm are given monthly targets by their companies? They have to sell stocks, bonds, and mutual funds amounting to the given target. That’s why they might sell you a lot of things in lieu of earning their company commissions! You should never buy something that you don’t need and be firm on your stance!
4. Other hidden motives: It is actually an open secret that financial advisory firms announce rewards such as a trip to Australia, or a brand new motor cycle to all those employees who exceed targets. Therefore a financial advisor might trick you into buying some of his new investment plans.
5. Investments that cost you big: There are certain types of investments that charge you hefty penalty for backing out. In case you are ever relocating to a foreign destination, such things might cause inconvenience. Also, at times you might be misinformed about the maturity date of your investments. If you fail to collect your money, your investment money might get passed on to the firm. Make sure you read all the offers carefully before investing.
6. They cannot predict growth: The market has already seen recession many times in the past 6 decades. No one can predict the market, and if any advisor does, don’t trust him!