Fees in perspective

Pay fees to a fee-only advisor - else you’ll pay dearly!

We all know that there are no free lunches in the world. Hence, those providing “free advice” are not free advice at all ! Unfortunately, what most clients believe is that they are getting advice for free from their agent. The financial services space operates on commissions based on products sales & offers some incidental advice. However, such advice may neither be of great quality nor would it be conflict-free. 

“Remember – Free food is found only in mouse traps!”

That is why advice should be kept separate from product sourcing. It should be like a doctor – chemist relationship. The doctor prescribes the medicines after discussing the illness with the patient. The chemist just dispenses the medicine prescribed.

We already pay fees…

When we employ a driver, we pay him a salary every month.  He transports one in comfort from point A to point B, leaving the passenger to stay relaxed & have time to think & prepare for any meetings ahead. The driver performs an important function. However, the role he plays is transaction. For this he is paid say Rs.15,000 a month. Assuming a driver is with a person for 30 years ( with 5% salary increase ), the amount paid to the driver would be paid is Rs.1.2 Crores ( without adjusting for time value of money )! Similarly, we pay maids, gym trainers, beauticians, lawyers, doctors, architects etc.  These days there are so many new services – Image consultants, marriage planners, life coaches etc., who also charge fees.

Hence, paying a fee is not the problem ; some find paying a fee for advice on finances to be a problem. Why?  Because, financial advice has always been available for free!

Cavalier attitude towards money

We all work about 35 years to earn money that can help in living well, meeting our goals & securing our future. Money is obviously very important for us. We spend most of our waking hours at the work place. Don’t you think that the money earned after such sacrifices should be treated with utmost respect that it deserves?

Most times, money is dealt with in a cavalier manner. Money lies around in the bank… people invest without so much as a second thought, chase the flavour of the season product… and certainly without any clear thoughts about what needs needs to be done to achieve the cherished goals. Planning is seldom done for finances, though the very same people plan the birthdays, picnics, even a simple trip to the home town, down to the last detail!

The force multiplier

Financial planning/ advisory is a very useful service as many do not have the time, inclination, knowledge, experience or expertise due to which they neglect this vital area. However, this can be easily handled. Just like one employs a lawyer, doctor or architect one can retain a financial planner/ advisor to comprehensively plan and advice in their best interests.

Since the raison d’etre of our working life is the money that it would bring us, it needs to be managed well, so that it could deliver the real fruits of the hard work to the family. Proper advice can save people from various mistakes as also help them invest appropriately after due consideration to all parameters. A good financial advisor can be a force multiplier for you. You however need to choose the right one.

We have a unique advisory model, which can work wonderfully for you. Come to us for your Success Planned