Is it necessary to always go to a financial planner/ adviser?

Written by Suresh Sadagopan

For doing Financial Planning, one needs the necessary knowledge on the subject matter. Also, one needs to have interest, skills & the time to understand one’s requirements, evaluate options and create a plan on which to act upon.

While this is possible, most people are very much involved in their work and do not have much time to spare. When they do have the time, they would like to relax or pursue hobbies instead of poring over articles and documents pertaining to their finances and spending further time on planning ahead.

People who have the knowledge & skills, aptitude and have the time to devote towards competently handling their own finances, akin to a professional is really rare. In case of people who do it by themselves, they will not have the experience that a professional advisor would have through years of advisory experience across different kinds of clients, across age brackets, personal situations, aspirations etc. Hence, a professional would have developed an expertise that would be hard to match.

For most people, it would be advisable that they approach a financial planner to seek professional advice. This is just like going to a lawyer, doctor or an architect to get appropriate advice in their area of specialisation. While it is possible to do some things by oneself (that a lawyer or doctor does after reading up a bit), we would all agree that going to these professionals would make sense in most cases as they are specialised domains.

What is not appreciated much is that even the finance domain is vast and specialised. Also, we all spend the prime of our lives to earn money but do not take the money earned seriously and try to do things ourselves, instead of approaching a specialist. Considering the stakes involved here, it makes sense to have an advisor here too.

When choosing an adviser, exercise caution. See whether the adviser/ planner is an RIA with SEBI, their credentials, experience, etc.

Half the battle is won, if you choose the right advisor. Read this to understand how to choose the right advisor.