Financial planning is a continuous process that requires two parties – an investor (individual or a family) and a financial planner. Both the parties need to work collectively and determine the best course of action. A good financial planner is the one who has a professional approach and inspires confidence. He or she should be able to take the investor along and co-create a financial plan.
Identifying a good Financial Planner
A good financial planner must possess the technical skills that allow him to read the cues, analyze the numbers, leverage professional insights and pre-empt the trends in the economy for providing timely solutions. However, knowledge and experience are not the only attributes that investors should look for. We need our financial planners to listen and not just hear .
The New Age Financial Planner
Most financial planners are pragmatic and number-driven and have an analytical bent of mind. However, the need of the hour is also empathy, intuition and innovation. That is why new age financial planners need to be good, not just at logical reasoning and analysis, but also with emotions, values and relationships.
A financial planner needs to develop the capability to read his clients well and the ability to lead them with innovation and not instruction.
Qualities of a Good Financial Planner:
Clarity: Clients usually demand to know how each piece fits in the bigger picture, and new age financial planners establish the context right at the beginning. This brings a level of clarity in their plans and decisions.
Transparency: A noteworthy trait of a good financial planner is openness to communication. He will help you avoid any hidden charges and stop you from taking uninformed decisions that could impair your financial plan. An ideal financial planner will construct a road map with you not just for you.
Flexible: New age financial planners are creative and they welcome change. They are also flexible and accommodating towards your changing goals. This approach allows them to give you innovative solutions.
Empathy: The ability to express and read emotions is one of the most important qualities a financial planner can have. An empathetic professional is intuitive about your needs and in a better position to decide the type of investments your plan requires.