Financial Planner: Is your financial planner really useful? Learn how to identify the right advisor...

Hiring a financial advisor is a big decision. You trust them not just with your money, but with your entire financial future. But the question is, is the fee you're paying really worth it? Here are some easy ways to identify whether your financial planner is truly providing value.

Transparency in Fees and Services is Essential
A reputable advisor clearly discloses their fee structure. Whether they charge a flat fee, earn a commission, or both. If your advisor starts to misinterpret this or you're confused about where they're making a profit, it's a red flag.
Check SEBI Registration and Certification

In India, only SEBI-registered investment advisors (RIAs) are legally authorized to provide financial advice. So, first, check that your advisor is registered on the SEBI website. Additionally, certifications like CFP (Certified Financial Planner) enhance their credibility.

The plan should be tailored to your needs.
If an advisor offers the same portfolio to every client, they don't understand your individual needs. A good financial planner provides advice tailored to your income, risk tolerance, and goals.

Staying in touch and providing updates as changes occur
Making a plan just once isn't enough. The right advisor provides regular updates and adjusts the strategy based on changes in your life (such as a job change or tax updates).

Evaluate by results
No advisor can guarantee returns, but over time, you should see things like tax savings, a balanced portfolio, and progress toward your goals. If they're simply trying to sell expensive products, you're probably paying too much for too little value.

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