The last year and a half has taught us many lessons. One that no one can deny the need to have a better knowledge and management of our money. What we have witnessed in the past year has also had far-reaching implications for our finances. We have seen people in vulnerable situations with the wrong insurance policies or no idea how to access them. Families, whose wealth was being used for medical bills. And the general uncertainty among active professionals and young people, who did not feel prepared for this situation.
During the lockdown, people who worked from home also began to think about saving and investing more. This led to an understanding of the value of paid advice versus free tickets (often not tailored to your needs) on your money. This expanded the opportunity for personal financial advisors. So what role does a personal finance advisor play?
“Help me to help you”. Jerry Maguire’s famous quote pretty much sums up the role of a financial planner or advisor. This person is qualified to help you better manage his money, understands his patterns of income, expenses, liabilities and everything else that has to do with his money. What is your risk tolerance? How will that determine his investment decisions? How will your investments align with your future financial goals? What is the path you should take in the future? What is your current asset allocation and what changes are needed? The advisor is an expert in financial products and how they can fit into our lives.
The opportunities for Certified Financial Planners or SEBI Certified Registered Investment Advisers (RIAs) are many. “For a country as big as ours, there are only around 1,400 RIAs and around 2,000 CFPs in India,” says Rajesh Krishnamoorthy, Country Director, Financial Planning Standards Board (FPSB) Ltd India Liaison Office. .
In the CFP course, you can choose to go through all qualification levels or specifically select Investment Planning, Retirement and Estate Planning, or Tax Planning. Alternatively, a good place to start is also by completing the NISM-Series-XA: Investment Advisor Certification Exam (Level 1) and NISM-Series-XB: Investment Advisor (Level 2) and working with a practicing RIA or a certified financial planner. . Each of these courses has a cost attached to it and you can opt for one based on where you are in your career. Some may want to take these courses to better manage their family’s money.
In terms of compensation, different advisors charge based on the depth and breadth of services provided. Standardized services and practices to be followed specifically as SEBI RIA are provided and this professional practice is regulated by SEBI. You can practice on your own or pursue opportunities with various entities. These qualifications also open up a number of opportunities for job seekers.
Sure: Insurance companies have recently begun hiring qualified experts to help individuals and families analyze, identify and select policies that fit their financial and future needs.
Financial institutions: Banks and financial institutions now have advisors to guide people in selecting the financial products that are right for them.
Family wealth management notices: Here, one person can help families make detailed financial plans, with meticulous scenario and outcome planning to provide the right investments/insurance, and assist in areas such as debt management.
New age outfits: Fintech and technology-enabled financial services platforms also need these experts to work on behalf of the customer.
The writer is the co-founder and COO of Basis, a financial services app and community platform for women.