Whenever we see or feel unusual symptoms in our body, we immediately go and see the doctor. As we know the doctor has the medical knowledge and proper skills required to cure us. Besides, we also have trust in him and that is the reason why most of us prefer family doctors.
Similarly, money doctors can help us for various purposes. But wait money doctor.., what’s that?
Money doctor means financial planner or financial consultant who can help us in achieving our financial goals by doing proper analysis of our income, expenses, etc.
Financial planners are not having any personal interest in selling any particular product to an investor. He has the best interest of the investor.
What factors should be considered while doing Financial planning?
Income (Rs.)
Regularity of income
Risk appetite
Financial goals
The time horizon for investments etc.
You may be thinking that we can do financial planning by ourselves, so why we need a financial planner for it?
So, here are the good reasons to hire him:
Professional knowledge:
Financial planners are experts and professional people. You can get the benefit of their knowledge and expertise by hiring them for your goals.
Systematic planning:
A financial planner helps in doing systematic planning by assessing the income, expenses, risk appetite, etc. of an individual.
For fulfilling particular financial goals:
We all have some financial goals which we need to achieve. E.g. marriage, education, travel, etc. In achieving all these goals, a financial planner can help.
When you have got money in large amounts:
If your previous investment like in Fixed deposit (FD) is getting matured, then you might need a financial planner. Investing money in the proper place at right time is very important to achieve financial goals.
Planning for retirement:
These days, it’s common to hear people saying retirement at around 40 years is optimal. So, if you want to plan systematically to enjoy your retirement worry-free, hiring a financial planner can be a good option for you.
For getting tax benefits:
We all know that we get tax benefits under section 80C or 80D of the Income-tax act, but what are the deductions that are available and up to what limit, etc. are mostly unknown to us. A financial planner can help us in reducing our tax liability by applying their knowledge.
We all almost do investments based on advice or suggestion given by our family, friends, relatives, etc. We try to even copy them by doing investments at the same place. But, we should keep in mind that, everyone’s financial goals, needs, etc. are different and that’s why we need a customized financial plan which can help us in achieving our goals.
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