The Benefits From Our Ongoing Advisory Engagement

Written by Suresh Sadagopan

There are multiple benefits arising out of seeking our counsel and being engaged with Ladder7 Financial Advisories. Being engaged with a conflict-free, fee-only client-centric adviser presents monetary & non-monetary benefits.

In this blog article, we are bringing out many of the benefits arising out of the advisory engagement with us.

MONETARY BENEFITS

Advisory Wealth effect – The full potential of one’s savings is never realized in the absence of a capable advisor. We have seen this in case after case. There is a massive difference between the wealth created when an advisor is present & one in which one may be doing things on one’s own.

At the very least, the advisor brings in discipline & regularity in investments. The advisor would also review the portfolio, weed out non-performers & bring in good candidates as necessary.

Direct MF plans – lower costs to you – We will suggest only Direct Plans which are cheaper than Regular Mutual Fund Plans. At a portfolio level for MFs, the difference is about 0.8-1% pa. On a Rs.1 Cr portfolio, that’s a savings of Rs.80,000 – Rs.1 Lakh.

MFs would form a major component of the portfolio & hence this savings will be on a big portion of the overall portfolio.

Other products a lower costs – We would be able to source products for you like PMS, AIF, Perpetual Bonds, NCDs, Tax-free bonds etc. at lower costs (without embedded commissions).

The total cost savings again here would be significant.

Tax efficiencies – We invest in products which are the right fit in your portfolio & are tax efficient for you. Such tax efficiencies would save a significant amount of money for our clients.

New Investments done as well as the existing investments would be looked into & reallocated, considering their risk-reward structure, tenure, taxation etc. In this process, we end up unlocking better tax adjusted returns.

Efficient money management – We help in managing the money efficiently, tailored to individual client situations. Money for the various goals & upcoming needs are invested in the right assets, after proper evaluation of risks, liquidity, taxation, tenure etc. Even liquidity & contingency margins are invested in appropriate vehicles to ensure better returns.

NON- MONETARY BENEFITS

Conflict-free advisors – We are fee-only advisors & Fiduciaries. We don’t sell any products & do not suggest anything with the ulterior motive of receiving commissions. You can trust us implicitly. You can now relax in the secure knowledge that you have an expert with you & s/he will always act in your best interests!

Streamlined & Aligned Portfolio – We will be doing portfolio reviews from time to time to ensure that the investments done are in alignment with your life requirements. We carry out portfolio reviews on a half-yearly basis. However, we keep monitoring the entire financial space & suggest any corrective actions, if necessary,

Avoid Big mistakes – Often money mistakes drain away huge amounts of money. Wrong insurances, PMS products, Structured Products, Chit funds etc. may not be suited to you and can be avoided if we are there to provide you counsel. Even one may be saddled with wrong schemes from MFs, which are detrimental to one’s situation in life.

Decision optimization – We help our clients to take the right decisions across multiple areas like loans, Insurance, key decisions like home purchase, foreign education of children & their funding etc. We help our client to choose the right product in every area, be it insurance or investment, to ensure the best outcomes at optimal costs.

Sounding board – Clients have no one to turn to, when it comes to finances. We are a sounding board to our clients, bringing sanity & refinement to their financial decisions. We are true, conflict-free advisors who have only our client’s interests at heart. We are Fiduciaries.

Our clients can turn to us for counsel on financial matters and be assured that they will get good, aligned advice. We ensure clarity and peace of mind.

Gift of Time – If you do it yourself, a lot of time needs to be spent on implementation. Also, all these needs to be done during the week, which will clash with the regular working hours. This can result in part implementation, procrastination & sub-optimal outcomes. When our operations team is involved, they implement many of the suggestions & save a lot of your time.

Many services subsumed here – You do not have to pay separately any longer in future for Plan creation, review, recast, portfolio review, implementation, financial consultations etc. for all of which you would have had to pay otherwise. The saving here over a five year period will be several lakhs of rupees !

The most important benefit of our engagement

Assurance of a smooth baton exchange – When we work with our client, they get the implied assurance that if they are not around, there is someone to take charge & ensure continuity and guide the family on their finances during the difficult period after the person who was fully in charge of financial affairs is no more.

Can you afford to experiment with your life earnings? When it comes to advice on your finances, you need the best, most experienced advisors you can get.