As we understand the value of money and explore ways of creating and preserving wealth, it is of pertinent importance that we appreciate the strong and positive correlation between the amount of wealth we are able to amass and the financial planner/advisor we choose.

Investment and management of your finances can be done in two ways. You can either manage your finances on your own or else can get professional help to manage your affairs.

Investment of one’s funds is a serious business as it can make or break one’s financial life. Just like when you are diagnosed with a medical problem, you start taking references and evaluating the reputation of various qualified doctors and hospitals. Similarly, at the time of making investment decisions, you should make a prudent decision while selecting your personal financial planner.

Financial Planning forms the core of rendering Investment Advice. How can one plan his/her investments without knowing his/her financial needs and goals? Investing without a financial plan is like roaming about the streets of a war torn foreign country without a road map or a guide. It is fraught with dangers which can be potentially fatal. One can end up investing large chunks of money but might not be able to meet his/her financial needs and goals in the future if he/she has not followed the financial planning route.

Imagine a person who has invested a considerable sum of money in equity markets though he will need the same in the next 6 months. Equities by nature are long term investments which might even show negative returns in the short term. After 6 months, if need arises, the person might have to sell his investments at a loss to meet his obligations. Had he been to a qualified financial planner to ask for advice, he would have been advised to invest his money in highly liquid money market or short term debt funds which would have given him low but positive and stable returns. The losses could have been entirely avoided.

Thus it is very important to have a personal financial planner who understands your needs, financial goals, existing financial position and income streams. Only then can one hope of creating, preserving and multiplying one’s wealth over the long term.

The key to effective money management is time and expertise. The more time you are prepared to invest in managing your financial affairs, the greater is the return on that investment. It therefore follows that the earlier you start managing your money, the more effective the process becomes.

Times certainly have changed. Not only has there been an advent of plethora of opportunities for the regular investor, but it also has made him / her spoilt for choice. Robust macro- economic fundamentals and the attendant spurt in investment avenues are attracting a host of investors. The investors are much more knowledgeable today and are very much willing to go that extra mile.