Make your financial planner your friend for life

Read in: 1min, Published On , 07 May 2019 By TOI

 A higher level of transparency between the investor and the financial planner helps smoothen the process of information flow among the two


In financial planning, transparency between the client and the planner, in most cases turn out to be mutually beneficial. Such a relationship enhances the investor's trust with the financial planner which in turn leads to sharing of more information with the planner. And for the planner, such flow of information helps him/her to analyse the situation of the investor in a much better way which in turn helps him/her get the best possible solution for the investor.

So as an investor, while you speak to your financial planner, it's very important to lay out your true picture relating to your financial position. Over time, as you get to know your financial planner better, you should let him/her know how and how much money is coming in, how and where the money is going, what are the short, medium and long term goals of you and your family and your present budget for meeting those goals.

Financial planners and advisors say it's better for investors not to hold back your wishes, incomes, expenses etc. from the planner. On their part, financial planners and advisors acknowledge that it's not easy for an investor to spell out all about his/her finances and goals to a near-stranger in the first meeting itself. To break this barrier, financial planners and advisors also talk to their investors in a way which could give them the confidence that they could trust the person who's trying to help them create wealth and reach their financial goals over a long period of time.