The financial planning ecosystem can prove complex. A credible financial advisor or financial coach should help you manage your money and meet your financial goals.

However, nearly anyone can market themselves as professional today. It is important that you select your coach carefully. With the pressures of investment commoditization, advisors are now adopting financial planning and wealth management for clients. A credible advisor should be able to explain the value you as the client will get from their services, clearly and concisely. The value proposition of the coach should touch on the benefits of their financial advice.  

What Should a Value Proposition Do?

The value proposition offered by your advisor should help you answer the following:

  1. In a long-term plan, how will you get help in organizing your financial affairs?
  2. How will the planner manage your investments to ensure the strategy continues to support the objective of the investment plan?
Plans on a paper with a calculator and a pen on the table

The 5 Pillars of Value Proposition

As mentioned in this Viral Mummy editorial, there is a wide array of financial services available to you, the client. That includes banks, insurance companies, and investment companies, among others. If you are to use one or several of these, then you need to face them with information and proper planning to ensure you are making the right decision. When choosing your financial advisor, ensure they meet the following key value proposition pillars.

  • Organization: They should have a good record of introducing financial order in insurance, investments, taxes, and etcetera.
  • Objectivity: The advisor should be able to help you make sound decisions by ensuring you have all the information needed.
  • Accountability: The advisor should help you prioritize your financial goals. They should also monitor the progress regularly.
  • Education: Your advisor can only help you win financially if they completely understand your situation. They should then be in a position to give you options and explain risks linked to each choice.
  • Partnership: Your advisor should help you meet the objectives of your financial plan by working with you. They should be meticulous in understanding your needs and objectives, as well as your philosophies.

These core pillars highlight what financial planning is all about. Unfortunately, not all financial advisors can live up to them because require a lot focus and effort.

Does a Financial Planner Really Matter?

As you get busier and acquire more property, your finances get more complicated. This is where a financial advisor comes in. A financial planner should help you maintain discipline in your financial strategies. They should also help you determine your short-term and long-term financial goals.

If a proper plan is devised, all financial decisions can be monitored, and a strong capital base can be built. A proper financial plan puts income and expenditure into consideration, enabling the client to make the right investment policy choice. A good financial planner should encourage you to have investments with high liquidity to use them in emergencies.  

The bottom line is; your financial planner should offer ethical advice and quality results guiding you towards a financially secure future.

Leave a Reply

Your email address will not be published. Required fields are marked *