Can I Trust My Financial Advisor?

Trust means everything in relationships, whether we’re

focusing on those in romance, family, or finances.
Trust is especially relevant in financial matters, which
can be as emotionally draining, destructive and costly as
anything else that we experience in our lives. An
unscrupulous financial advisor can cause an
unsuspecting investor to be badly hurt or even tragically
wiped out of a lifetime of hard work and savings.

should I use a financial advisor or do it myself?

Understanding personal finance is an important part of
managing your money. Financial planning requires a
certain understanding of investments, taxes, and
budgeting in general. Now, some people may find these
things easy to comprehend, but for most people, and
beginners, in particular, it may be essential to enlist the
help of an expert to understand and plan their finances
better.
And often, even if you have a fairly basic understanding
of how taxes, personal finance, and investments work,
you may still find yourself in a situation where it may be
essential to seek the expertise of a financial advisor.
But how do you know when it’s time to hire a financial
planning advisor? Let’s look at some of the key
situations when it may just be the ideal time to seek
expert help.
The Right Time to Hire A Financial Advisor is
When You're Beginning To Seriously Consider
Retirement
You work for years on end, mostly with one key goal - to
save up enough for a comfortable life after you’ve
retired. Now, while there are several avenues of
investment in India to help you build your retirement
corpus, it takes a financial advisor’s expertise to help
you figure out how to best use the money you have to
create the retirement fund you need.
For this reason, it’s a good time to seek out an expert
when you’re starting to seriously think about retiring
down the line. That’s when you’ll have a clear picture of
how much you need to save and the time frame within
which you need to do that.

You Earned a Hike In Your Pay

Earning a raise at work is always a reason to celebrate.
But after the initial euphoria has passed, the dilemma of
what you could do with all those additional funds
remains. If you have debts or obligations to settle, your
extra pay could be redirected to those areas. However, if
you’re unsure of what to do with the increase in funds, a
financial planning advisor can help you out.
With years of expertise to rely on, a financial advisor
could assist you in using the significant raise you
received to increase your long-term wealth instead of
using those funds for short-term requirements. When
you receive huge sums of money in the form of
unexpected windfall gains, you may be unsure of how to
put those funds to the best use possible. For instance, in
case you receive an inheritance, you may unexpectedly
find yourself handling huge sums of money, with no idea
about where or how to invest them.
This is another great time to seek out a financial
planning expert, so you can get your queries sorted out
by an expert in the field. Without such expert guidance,
you run the risk of making hasty or uninformed financial
decisions that could erode the windfall gains you
received.

Major life events often require that you take a closer look
at your finances and move your money around as
needed. For instance, when you have a baby, start a
business of your own, or even lose a major earning
member of your family, you’ll find that your finances may
need to be overhauled to align with the event you’re
dealing with.
Financial advisors can prove to be invaluable at such
times because they can offer you the guidance you need
to navigate these life events prudently. Right from
helping you understand your options to actually charting
out a financial plan for you, the level of assistance is
wide-ranging and yours to choose.
You're Just Earned Your First Paycheck
In some cases, the best time to hire a financial planning
advisor maybe when you earn your first paycheck. This
is particularly true in case you are in a high-paying job
that leaves you with more money at the end of the
month than you can manage on your own.
A financial planner, with their expertise and knowledge,
can help you make sense of investments and tax
planning, so your salary is put to the best use possible.
When you look back years later, you’ll agree that hiring
a financial planner early on is one of the most prudent
financial decisions anyone can make.

You Want To Reduce Your Tax Burden

A change in the tax regime, an increase in your pay, or
even a sale of a capital asset like a building or a plot of
land could shoot your income up into an income slab
that comes with a higher rate of tax. If that happens, that
may be another right time to hire a financial advisor, so
you can learn how to reduce your tax burden.
While you may be aware of the key elements of tax
saving, like section 80C deductions, a financial expert
can help you tap into all the benefits available for your
specific taxpayer profile, so you can minimize your tax
liability.
Aside from the scenarios discussed above, another
good time to consider hiring a financial planning advisor
is if you’re starting to find your finances complicated. An
expert can help you understand how to manage your
finances and align your investments with your goals and
your risk profile, so you can achieve all of your life goals
as planned. You can reach out to sub-brokers that have
partnered with reputed franchises like Kotak Private
Equity Group, Bajaj Capital Limited, IIFL, and many
more companies for a trustworthy experience.