Decision regarding financial planning

POSTED BY sachin l. mulik ON January 15, 2011 3:09 pm COMMENTS (6)

Hi! This is Sachin from mumbai,34,married,wish to go for financial planning to achieve my goals.I work in gems & jewellery industry & my total income is Rs 30k per month & am able to save around 7k per month.My wife (law grad) is jobless currently as she is pregnant and expecting a baby in april 2011.Her income was around 15k per month & she may resume job in nov 2011 (considering the recovery period after pregnancy).For financial planning they usually charge 15-20k for the plan & 12-15k per year for plan review each year.So my queries are-

1)In my case,will it be a wise decision to go for financial planning by spending that much amount? Or

2)Should I save the same fees by planning myself? Or

3)Should I postpone the decision of FP till my wife resumes work?

4)If I should go for FP that planner should be CFP or CFA?

5)He should be INDEPENDANT or FROM the Financial planning firm(corporate-where they operate as a group)?

6)How to select a FP?

Pls guide me.

6 replies on this article “Decision regarding financial planning”

  1. randomguy says:

    There are good financial planners in this world but they very few and far between!!! Most financial planners ‘plan for themselves’ and are more concerned about their fee income/commission. There is a huge ‘conflict of interest’ in what they do and they all talk the same language and no one understands it!!

    Please don’t take it personally FP. All in the best interest of good for all! It was never the case and never will it happen. We are just humans after all…

  2. Ramesh says:

    For a reasonable fee, it is not bad to have a financial planner. Please go through other forum queries regarding this matter.

    also, investing your time to acquire knowledge yourself is a must.

    Both things go hand in hand.


  3. jignesh says:

    First of all this site is fabulous for learning and i am surprise to know still a person need Planner. well other than this site just visit . the complete page is for financial planning. just you need to input your data ( which even CFP will ask you to provide). so only you are the one who can provide data and once data is available you own can generate your asset allocation, your risk factor and do a plan accordingly providing you have your goal decided. khalas…

    why need to pay if you are aware with different options available for investment and insurance.

    Even i came across some planners who first ask 25K for complete planning and then with bargain they are ready with nil amount if i invest through them. How you will take this matter??

    also you are your own boss and you can review your plan ( as plan doesnt require daily review ) i am sure you will get time once in year to review your plan and can do require changes if needed by yourself. ( change in funds, asset allocation , risk factor may reduce, etc etc )

    well i am sharing info and hope FP will not take it personally.


  4. Mukesh Agarwal says:

    And one more important think is that if you save this rs 15,000 P.A for 30 years @ 8% then you get RS 1944660.41.

  5. Mukesh Agarwal says:

    Hi Sachin Ji

    I agree with randomguy and the question no 2 you have asked. Dont pay such huge amount for FP, as i think its wastage of money. You can get much knowledge about Financial Planning from jagoinvestor as Manish ji has publish many articles with good examples. And one more thing that you have almost completed your 90 % of Financial Planning as you started thinkinh about it. If you have any doubt about FP you can ask here in this fourm before investing.


  6. randomguy says:

    My answer is a firm NO to all, but a definite YES to question number 2. Invest in yourself and increase your knowledge. Pay yourself first before helping out others as someone said it!!

    What is your goal? Set goals and try to achieve it one by one. Short term goals to begin with and that is a good start. You will learn fast if you are keen. You will need help from ‘experts’ at some stage in the future but now is not the time-too expensive for you.

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