Most Frequently Asked Questions

A financial planner tailors a portfolio to fit a client's unique situation, focusing on achieving goals rather than just maximizing returns. While they consider returns, the emphasis is on holistic financial planning.

Investments are made to achieve specific goals. A comprehensive understanding of the client's situation is necessary to provide effective portfolio advice, which is why creating a financial plan is essential.

To offer the best possible financial advice, planners need a full understanding of the client's financial situation. Just like a doctor requires full disclosure to diagnose and treat, a financial planner needs comprehensive information.

Financial planning is beneficial for everyone, regardless of wealth. It helps people at all income levels achieve their financial goals through systematic planning.

With modern communication tools, it is possible to work with financial advisors remotely. Many clients choose virtual meetings even when their advisors are local.

Paying for financial services provides professional, ethical advice that can help you better manage your finances, achieve your goals, and potentially get better returns.

The planner will be well-qualified, typically with Certified Financial Planner (CFP) credentials, and experienced in creating financial plans. They will also meet SEBI's higher compliance and standards as registered Investment Advisers.

A CA focuses on tax compliance, while a financial planner helps crystallize objectives and creates a plan that covers investments, risk, tax, retirement, and other financial aspects.

Financial planners do not guarantee returns. Their focus is on creating a well-orchestrated plan to achieve financial goals, with better management of finances potentially leading to higher returns.

Financial planners, like doctors, require full disclosure to provide appropriate solutions. Confidentiality is ensured, especially with SEBI Registered Investment Advisers who adhere to strict regulations.

The focus of financial planning is to ensure goals and objectives are met in a planned manner, considering personal circumstances, liquidity, risk-reward, taxation, etc. Returns are determined by asset mix and allocations. The focus is on meeting the client's life requirements at various stages, not just on returns.

Fee-only Financial Planners charge clients and are conflict-free, independent, and do not earn commissions. Distributors may earn the same but have a conflict of interest, as they represent principals and sell products that offer the best commissions to them. Fee-only advisors provide unbiased recommendations, whereas distributors may push products for commissions.

The fee depends on service offering. Ladder7 is SEBI Registered and works on a fee-only model. They deploy three qualified advisors, creating a tailored plan through extensive client collaboration. Many other advisors use automated plans, taking less time and effort. Ladder7 spends 60-80 hours on a plan, and the fee per hour is one of the lowest. Fee-only advisors do not earn commissions, which explains the fee difference.

Life planning involves understanding one's deepest motivations and desires, leading to financial planning based on heartfelt goals. Though life planning is recommended as a precursor to financial planning, many clients prefer to focus solely on financial planning. Ladder7 offers life planning to a small segment of clients and financial planning based on goals for the majority.

Ladder7's only source of revenue is the fee charged to clients. They do not receive any remuneration from product manufacturers, ensuring that they remain client-centric, independent, and conflict-free.

Ladder7 takes data confidentiality seriously. They are SEBI Registered Investment Advisers, meaning client data cannot be shared without the client's knowledge. Employees are bound by confidentiality agreements. Ladder7 also enters into a Service Engagement Agreement with clients, ensuring that data is never shared or sold.

Fee-only advisors charge clients directly, act in their best interests, and are independent and conflict-free. Fee-based advisors, on the other hand, charge a fee but also earn commissions, creating potential conflicts of interest. The fee-only model is better for clients, ensuring unbiased advice.

Ladder7 discusses client situations extensively before creating a plan. If unforeseen changes require redoing the plan, it will be considered a new engagement, and the client will be charged accordingly.

The book simplifies financial planning concepts but is not designed to help readers create a financial plan independently. It is not a DIY guide to financial planning.

SEBI RIAs are fee-only advisors, eliminating conflicts of interest and ensuring fiduciary responsibility. They must meet higher education standards, follow due processes, and provide trustworthy, client-first advice. RIAs offer high-quality financial guidance, ensuring that the client's interests come first.

Ladder7 assigns multiple advisors to guide clients, ensuring a consistent service delivery experience. Advisor assignment depends on the services being opted for. Each advisor follows a clearly laid-out process, ensuring uniformly high-quality service.

Also like we mentioned before we are Registered Investment Advisers under SEBI and have assumed fiduciary responsibility. We are fee-only financial planners & advisers. It is in your interest to seek us out.

The Insurance Advisor is attached to a company and wants to sell his company's policies. Also, he may push products where his interests lie and not necessarily ones that suit your needs. A distributor may again push schemes that give him maximum brokerage. They do this as that is the only way they are remunerated and they are from the company side. We are from the client's side and look at what is most beneficial in terms of fit and costs. Since we are paid fees by our clients, we retain our independence and advice without prejudice. Apart from that, since the financial planner knows the overall picture, the advice will be a lot more specific and will fit well.