Do you need a financial planner, and how to choose one?

 

 Many may you think, why am I hiring a financial planner? I can do it myself! Right, you might be able to do it yourself. But how much and how long it takes to learn it. 

Just like when your body condition worsens you will go under the doctor and when your vehicle breaks down you will take it to the repair shop, on the grounds that they are experts in the field. But the question now is what if your finances are unhealthy? What are you doing?

Why do you need a financial planner?

It's like the doctor you need when you're sick. You need a financial planner as a doctor when your financial situation is deteriorating. But unfortunately, there are still many who are reluctant to meet financial planners on the grounds that the amount of deposits is still small, so they do not need their advice, especially by having to pay. In fact, if finances want to be healthy, you need a financial planner.

A financial planner is essentially an expert who helps his clients achieve financial goals, for example education funds, pensions, buying a house, and so on. Financial management and planning must be done from the beginning to be able to achieve your goals and dreams. There are several benefits that can be felt when we hire a financial planner. Arbitrary? Here it is.

1. Provide an Objective Portrait of Financial Condition

Being objective is one that must be done in managing finances. But another story if what we manage is our own finances. It's hard to stay objective. In other issues, we may be able to think clearly and make rational decisions. But often not, when it comes to family finances. Many deny, for example, that finance does not support but still send children to international schools that cost exorbitant. That's why many middle class earn more than enough, but have unmanageable credit card debt.

Unlike you, because it has no emotional connection to your wealth, financial planners can provide an objective analysis. For example, the planner will perform diagnostics (financial check-ups). All financial data is requested, inputted and calculated, then they analyze whether you are financially sound or not. Where the problem will be clearly displayed. Everything is objective, based on numbers and calculations.

2. An Expert in his field

Another advantage of hiring a financial planner is, you have an expert in his field to give advice on how to organize family finances.

Financial planners have education and experience in dealing with financial issues. For example, how to prepare a child's education fund, they know the most efficient and effective way to achieve those goals. Can't you learn on your own? It can be, but the challenge is time and the ability to learn.

3. Help Realize Your Financial Plan

Plans without realization will be useless, useless. Planners present poured the plan into concrete steps of implementation. They try to obey you and be disciplined to follow the steps set out in the plan.

Financial planners have people whose job it is to remind you every month to make investments as planned. They also monitor regularly between results and goals in the plan. In the event of an incompatibility, a review is immediately conducted and, if necessary, the plan is revised.

4. Find a Suitable Financial Product

There are many financial products sold on the market. The number of many has made dizzy, especially products sold through various aggressive promotional strategies. Where do you want to choose? Finally it often happens, because of confusion, we choose the most interesting product promotion or sold by a close relative taken because of bad taste, while quite possibly it is not the right choice.

Because of struggling in the world of finance, financial planners understand all products and do research and collect information regularly. They understand the product that best suits the client's needs. For example, when you need mutual funds

They know which one best fits the client's risk profile. When clients prepare education funds, they already understand how much the cost of education increases every year. You can judge that the small amount of wealth has nothing to do with the need for a financial planner. Facing financial problems or wanting to manage family finances in a healthy manner, that's when you need the services of a financial planner.

5. How to Choose a Financial Planner

Everyone can have their own criteria. But make sure some of the criteria below are included in your criteria.

Trustworthy, There is a strong sense of trust

Why is trust the main thing? In the process of analysis and consultation, you must open up, or even naked, about your financial condition. There can be nothing to hide. Information that is not open will make the analysis inaccurate, the end of which the action taken is wrong.  Openness can only be achieved with a high level of trust. If you do not believe, or suspect, it will be very difficult to open up, especially about sensitive family financial information.

Supported by strong research

In preparing a financial plan requires adequate knowledge support and market information. For example, when compiling education funds, updates on how much the average tuition fee increases per year according to the type of school. Know how mutual funds perform, including the risks, so that they can suggest the most suitable for clients.

Have Varied Services

Client needs can vary. Some need to create a comprehensive financial plan, complete from A to Z to its implementation. However, there are those who do not need to make a plan, only need consultation. There are also those who do not need all that, prefer training because, in addition to wanting to learn on their own, do not want financial information to be opened to others. Financial planners should have a variety of product or service offerings. There are many options for prospective clients to choose as needed.

Independent

Independent means that the advice given is solely aimed at the interests of the client. Not selling products or services from a particular company or institution. The analysis must be objective according to the needs of the client. In consultation, the planner will provide advice on products that should be taken by clients, such as insurance, mutual funds and so on. Well, planners should focus on the client's interests, not selling the product.  Simply put, they do not represent or work for a particular financial company, such as insurance or mutual funds, but are independent.

Have certification

Make sure the financial planner you choose has a certified accredited. It can be easily seen whether you have a Certified financial Planner (CFP) degree, which is one of the financial planner certifications.

Certification is the process of ensuring that planners have the level of knowledge and expertise to carry out a function or discipline in the field of Financial Planning in Indonesia. This is proof that their expertise has been recognized after going through a series of exams by a trusted institution. The certification program ensures to members of the public that the financial planner practitioner has met the standards of competence, ethical standards and standards of practice that are appropriate in providing specialized financial planning services, in one or more areas only in an independent capacity (unsupervised) and they have agreed to submit to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and perseverance when dealing with clients.

Make sure you choose the right financial planner.

Some of the above considerations you can use before finally deciding to choose financial planning that suits your criteria. Make sure the financial planner you choose declares any potential conflicts of interest. Not only that, make sure your financial planner lists which cores he works with as written as it is written. If it is found to violate business ethics, you can report it to the FPSB, the organization that has the power to revoke the CFP or RFP license it has.