When an advisor approaches a client, the initial conversation is most vital. It is also the most difficult conversation that often decides whether the prospect becomes a client and this is where the advisors face hardship. Jayshree Pyasi lists what you need to tell an investor on why they need an advisor
Shortage of time for financial matters
Many people simply don’t have the time or inclination to give their personal finances the time and attention it deserves. After working hard to earn a living they don’t want to sit down and plan how they are going to invest or spend their money. Apart from living expenses and basic bills there is little financial planning going on in most households. This is where you come in.
Investment expertise
Using a portion of savings to start investing is a great idea but a lot of investors shirk from doing so as they do not want to get into the hassles of paper work. Also, many investors shy away from investing as they find it too risky. This is where you as an advisor can help as you can guide the investor in the best way to make their hard earned money work.
You will be able to discuss with your investor the different types of investments and the risks involved in them. Riskier investments generally yield bigger returns when successful while safe investments yield small and steady returns. A combination of both is possible and usually a good idea.
Asset allocation
An advisor is not only in position to check investor’s overall goals and objectives but can also make them think about it. As an advisor you are qualified to give him/her alternatives. We all know there are many financial investment products out there and you are one who can choose the right product in the right proportion to give the client the optimum mix to reach his/her goals..
Can help in planning for retirement
It is essential for investors to put money aside for retirement. Whatever the situation, it can only be beneficial to have money set aside for the day when the pay checks are no longer coming in regularly. In India there is no welfare scheme for senior citizens. As an advisor, you can help set up the right plan for their retirement.
Tax considerations
IFAs like you are familiar with tax laws as you know about the different tax- advantages and can help them design a portfolio that is tax-efficient.
Future planning
A financial planner can be worth his weight in gold here by taking the guess work out of planning for family’s future. Different accounts can be set up to ensure that they can put aside money for their goals such as children’s education, retirement.
