Thread by @Crazynaval

Around 2017, I dabbled in to seeking financial advise. From a well known Chennai based planner. While I was decently well read on the subject but I still want to see what that advisor had to offer. Read on [A thread]

1/n

Goal 1: I was planning to buy a new car in few years. Target was to replace old one at 8-9th year.

I had money year marked in a low duration debt fund/ liquid fund.

Advise: put in a balanced fund for 4 years at 12% !!

No sequence of risk offcourse because planner is superb!!

Goal 2: that time I was blind about buying a home

My plan: create down payment in 4 years along with existing saving, rest take loan. Mode of saving: liquid funds

My planner: hey maccha, equity maccha

Equity for a goal 4 years away In full blown plan of 24 pages.

Hmmm

Just like that goal 3 and goal 4 were about child education and all. And now you know the story ;)

SIP, SIP, SIP...

So I asked, which Mutual fund I will invest in?

He said Rs 2040 me itna hi milega, invest thru us, we charge 2% on portfolio.

I kept thinking..

And then I read their assumption sheets.

I thought a lot and then I further thought a lot and I decided, nahi ho payega.

And that's how we never met again.

So all people who planning to outsource your financial advisory

Here is what I will recommend

1. Prepare yourself with basic first.
2. Read a lot about risk
3. Then read about sequence of risk
4. Read more about asset allocation

Don't find the best fund or best planner

First find the best YOU who is well informed and knows what is other speaking. If you are scared of maths and excel, imagine how scary it will be lose actual money.

There is tons of reading material to get you started. To absorb/learn/ being aware but it's important..

Don't connect till you are prepared. Here is what I will recommend first/ helped me a lot

1. Read subramoney.com
2. Read stableinvestor.com
3. Read Let's talk money

These 3 are enough to get you to grasp knowledge
@StableInvestor @pvsubramanyam @monikahalan

And then sit across a planner, question about the choices you are making and he is making for you.

Financial planner is not a remedy if you are unaware..

Financial planner will be margdarshak only if you are ready to see the path.

Borrowed conviction don't work

Learn .. do it your self.. pose questions, prioritize your goals and then meet the planner.

The good one will be instant connection, the bad ones will get filtered out if you are aware.

I rejected 2 before I became a DIY

The end :)