While they might manage successful advisory business, these financial experts take advice from another advisor for their own financial decisions. We spoke to them to understand the rationale behind their decision and the advantages of having an advisor take care of their finances.
Sadique Neelgund, Network FP
I think every advisor must think about having their finance managed by an advisor. Firstly, this inculcates investment discipline and accountability. Often I have found that though advisors coach their clients and give them periodic reminders about their financial goals, they fail to transform the same discipline for their own portfolios. By hiring an advisor to take care of such things, you are free to give your undivided attention to your clients.
Another important reason to hire an advisor is to cover your blind spots. Often because of the innate bias that comes with handling our own finances, we might miss some glaring holes in our investment; you can overcome this problem by asking another expert to go through your portfolio.
PV Subramanian, subramoney.com
IFAs must hire advisors for the same reason their clients hire them. There is nothing wrong in this. Even an established dentist will have to visit another for getting his tooth extracted.
By hiring or consulting with another advisor, I feel IFAs will be able to eliminate any possibility of error in judgement.
In addition, I feel IFAs lack time to concentrate fully on their profile. They spend more time with their client’s finances than their own. By hiring an advisor to look at their portfolio, an IFA will be free to take care of his client’s needs.
Just as in the case of an external audit for a company, by having a dedicated advisor, an IFA can benefit from expert advice and ensure he has not missed anything.
Ramesh Bhat, Aniram
I think it is best to have another advisor look at your financial plan. Even if you have decided where to invest, a second opinion is always good. I have also found that by consulting with another advisor, you will get a fresh perspective.
I do not just take opinions of other advisors; in fact, I too advise them on their financial plan. If you are not comfortable asking another advisor to make your financial plan, you could always seek their opinion on a plan you create for yourself.