a) Have an open and professional relationship with your planner. Any financial planner would always welcome questions and appreciates clients asking relevant and sensible questions or asking clarifications. Adversarial attitude may be counterproductive. At the same time, your financial planner may seek very personal information. It may seem intrusive but he has no alternative other than seeking out such information to enable him construct a plan which is as near to your personality as possible.
b) Develop time perspective about your financial plan. Financial planner intuitively tries to visualise future scenarios. Visualising future scenarios is possible but visualising the future accurately may not be possible. What this means is that a financial planner would construct various scenarios using ‘what if’ methodologies. However, he has no power to predict future outcomes with any greater accuracy. At the same time, if you are stuck in the past or try to live only for the moment, financial planning would fail.
c) Financial plan as a document is only a small part of the whole story. Financial planning process is much bigger than mere financial plan document. Once the document is created, it will act as a reference point. Your financial planner is the one who will act as your guide through your financial journey. In this journey, sometimes the entire horizon is visible and sometimes you have to travel through the dark tunnel. You may have to entirely rely upon the guidance your planner would provide. So TRUST is at the core in this relationship as well. However, it is not a blind trust that you must repose. It has to be an enlightened trust. If you depend on your financial planner just for a document of finite pages, you would receive actually very less value.
d) Your Financial Planner may sometimes assume the role of leader of the team of professionals who may work for you, professionals such as accountants, lawyers, trustees, insurance advisors, investment advisors and so on. This arrangement is quite logical and desirable as well. Choose your financial planner wisely – a planner who has such leadership qualities so that you get the desired solutions.
e) Your financial planner is as much susceptible to biases as you are. Please keep this point in mind when you deal with him. Ask him directly how he will be able to overcome his personal biases when advising you. If you ask me, this is possible only if your financial planner has a clear process. Also, your financial plan has to be portable, meaning, if you end the relationship with your current planner, you should be able to take your plan to another planner seamlessly.
f) Remuneration to your financial planner is an important part of the whole equation. It should be fair and adequate. Do not expect to receive advice worth millions of rupees for a fees equivalent to a packet of peanuts. Do you expect your financial planner to live in penury and still help you to create durable wealth?
g) Is your love affair with your financial plan a one-time one? It is no good for you. Any financial plan will have a shelf-life and your financial planner should have a clearly defined review process.
h) Certification matters and CFP certification is the gold standard in financial planning on this planet.
The Process of Optimisation 