An investment advisor – A planner for your financial dreams

Globalisation, urbanisation, and technology have impacted the Indian lifestyle, blending tradition with modernity. The anticipated growth in Indian household wealth underscores the need for effective investment planning and wealth management. While modern, urban individuals and families have made conscious choices in their lifestyles (i.e. get attended by famous salons/stylists, enjoy exquisite culinary experiences, go to well-planned vacations in exotic locations, pursue hobbies and well-regimented fitness schedules, have access to personal doctors/ medical experts, hire wedding planners for destination weddings, etc), they often fall short of compelling reasons to convince themselves on why should they partner well with a competent investment advisor.

The decision to hire an investment advisor depends upon individual circumstances, financial goals, and preferences. Some prefer the DIY route, and some take a hearsay and ad-hoc approach but having a trusted investment advisor is invaluable. India has a diverse financial landscape with a multitude of products across asset classes. Navigating this complexity can be challenging.

There are several other reasons why one might want an investment advisor for one’s finances.

• One is too busy pursuing other life goals for self/ family and have time constraints
• One does not have a lot of experience with investments
• Helps one make smarter financial decisions
• One cannot afford any losses in portfolio
• One needs more sophisticated and complex planning
• One is uncertain about how to manage money, invest for the long term, and take care of family
• One inherits fortune
• One gets promoted and earns a hefty bonus(es)
• One needs to develop a holistic financial plan and have regular check-ins
• One requires debt management, budgeting, retirement planning, estate planning, tax planning

Remember, financial advisors aren’t just for the wealthy, they also help everyday people achieve their financial goals. If you are looking to improve your financial situation and grow your wealth, consider consulting a professional.

An investment advisor is a financial professional, who provides advice and guidance on investments, financial planning, portfolio management, and all other related financial matters. They play a very important role in simplifying the complexities of financial markets with their expertise and knowledge. They sit down with you to understand your financial status, needs, preferences, priorities, returns, risk expectations, etc. They help you define SMART (specific, measurable, achievable, realistic, and time-bound) financial goals, handhold you in making informed investment decisions, guide you in your execution journey, and manage your investment portfolios including monitoring and measuring performance from time to time. They help you streamline and grow your wealth, manage risks, and are the best professional partners to achieve your long-term financial objectives and retirement planning (i.e. your financial dreams!).

So here’s a quick recap of what an investment advisor can do for you and how that partnership should look like or can work effectively for desired financial results.

• An investment advisor can be a trusted financial friend to you. Find an investment advisor whom you can trust. And work towards building your increased trust and comfort with the advisor. Share your financial needs and goals, current spending and savings habits, and income and expenses. Have objective discussions and lay down clear expectations in this new relationship with revisions (as may be required) occasionally.

• Spend time understanding the expertise and knowledge of your investment advisor. They are professional, competent, and licensed professionals who are equipped to be an advisor and help you save time.

• Leverage the financial planning skills of your investment advisor. Have personalized sessions. Define SMART (specific, measurable, achievable, realistic, and time-bound) goals for yourself (and dependents and family) in discussion with your investment advisors. They can research the investment options for you, monitor your investments, and analyze the performances vis-à-vis the goals stated and agreed upon.

• Given their specialised knowledge, they can guide on various aspects of financial planning and execution. Such as when to invest, which investments are likely to be profitable and why, how to diversify your portfolio, understanding the underlying risks of investment options chosen, helping you keep the emotional quotient out, etc. They help you in strategic asset allocation and in making sound and timely decisions.

• One of the big advantages of investment advisors is that they keep you laser-focused and persuade you to remain accountable towards your own financial goals. They have your back all the time.

• They track your investments and monitor your progress and achievements. They hold regular sessions with you to recalibrate your plans, and your goals to adjust for any unplanned events, challenges, or otherwise, as encountered on the go. Life is dynamic and so is the source of finances, financial planning and outcomes.

• Investment advisors are astute and steer you towards long-term wealth creation. They help you safeguard and grow your assets, to ensure ongoing financial stability for yourself, your dependents, and your family.

• The services of an investment advisor come at a fees, which gets far outweighed by the financial benefits you reap from being associated with an investment advisor throughout your financial journey. This is where you should avoid being penny wise and pound foolish, a mistake commonly made by individuals.

• The best investment you can make is in yourself. Professionally sign up with an investment advisor who can help you make the most of that investment.

• An investment advisor is not just a mere planner of your finances. But a planner of your and your family’s dreams.

While investing doesn’t have to be hard. If you’re unsure of your discipline and confidence to be an investor and you don’t have time to learn a new skill set, hiring an investment advisor is worth it. Most people feel like they know everything about investing and money management, but a periodic check-in with an objective and knowledgeable investment advisor turns out to be very helpful. You do not know the efficient means you may be missing in planning your financial life unless you partner with an investment advisor.

Contributed by Priti Goel, Founder & CEO of Prisha Wealth Management Private Limited, and a certified investment advisor.

Disclaimer – The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.