We hire professionals for several jobs including building a house, for our fitness, tax filing, and whatnot. You can do all these jobs on your own as well but the help of an expert helps in bringing precision to the end-result. We also hire professionals when are short of time for such tasks.
Similarly, financial planning is no rocket science. However, you need a lot of time, commitment, and discipline to execute a foolproof financial plan. And if you don't have time for the required research and learn the nuances of financial planning then it is advisable to seek professional help.
Who is a financial planner?
A financial planner can help you deal with your financial issues and help you reach your short-term and long-term financial goal. Just like CAs and MBAs, there are also certified financial planners (CFP) who are trained to help you with efficient and feasible financial planning.
Where to look for a financial planner?
CFP
To find a CFP, you can go to the FPSB website. It offers a CFP professionals directory where you can find CFPs based on location, name, and employment. At present, there are more than 1800 CFPs in India.
However, to find a practicing CFP, search for “Self Employed” or “Independent Financial Planners”. You may find difficulty in hiring a CFP as they are very low in number and majority of them are not practicing. Also, most of them are based in only major cities of India.
Non-CFP
There are many financial planner who are practicing before CFP certification came into the picture. However, before going for a non-CFP, you should check their track record and talk with their existing clients to lock in the right financial planner. Always hire someone whom you can trust because then only you would be able to trust her financial advice.
Fees
Normally, a reputed financial planner charges between Rs 10,000 to 30,000. Here, the point worth pondering is it worth the amount. Are you saving enough time and hassle by spending that amount on a financial planner? Or do you even afford it?
And do not fall in the trap of self proclaimed financial planners who offer their services for free. These financial planners are normally mutual fund and insurance agents who eventually sell their financial products to you; in the name of financial planning.
If your budget is not allowing you to pay such a hefty fees, then it is best to devote some time to financial planning. Research and learn about it to plan your finances on your own.