Wealth management: We often say, “Let’s get to the root of a problem and fix it in totality.” The same applies to our investments and financial planning in general. We all want to own the best products in our portfolio but as it turns out, the reality is actually far from it. While I know we cannot control everything, one thing we can control is how we build our advisor portfolio. Let us understand that no ne person or entity has all the skills in the world to help us navigate through the complex maze of finance, accounting and legal affairs.
Just like our investments, we must also diversify our advisor risk. Who is advising us? Who is managing what for us? How can we ensure that all is well with us and our affairs? These are questions to consider. Let’s start counting. Who are the people and entities we require? Here are some broad suggestions.
Bank & Relationship manager: It is good to have two banks to deal with. One bank account could be used for financial planning, while the other could be for general expenses or other matters.
Chartered Accountant: We cannot have two here but if you are running a private limited company you could have one for your company accounts and one for your personal accounts. For self employed and partnerships, you obviously need just one CA.
Financial Planner: You just need this person. He is your family’s financial doctor and capable of giving you a holistic view. He cannot be replaced but you must speak to a handful of planners to understand each ones way, style and methodology of work and, most importantly, how comfortable you might be with his/her approach. Remember this is going to be your most important and lifelong relationship. Take you time to sign up with one, but be certain that you are satisfied with the person. There are a few things that can be taken for granted here: It is most likely that you will not be mis-sold anything, relationship will be lifelong, advise will be in your interest and there will be transparency. It might be even better if the person is not attached to any one company like an insurance agent. This, however, may not be evident so better check this before signing up.
Life Insurance Agent: We need to shop really hard here as we could be misled so easily. This