How to select a good financial advisor? 👇

Caveat: I've not used a financial advisor and learnt things the hard way and / or with tons of research. I wish I had used a fee only advisor earlier. I may have avoided at least some mistakes.

Feel free to add.
1. Pick a fee only financial planner / advisor. That way they have no conflict of interest and no interest to peddle products to you.
2. Ask what they will discuss with you in the first session. Anyone who doesn't start with wanting to know your goals, aspirations, fears should be a red flag.

Money must fit into life. Life shouldn't revolve around money.
3. Ask their philosophy of investing / money. A good financial planner must find a balance between growing wealth and preserving it. Beware of those who brag about beating the market.
4. Ask what kind of clients they work with. If they work with HNIs and you have only a few lakhs, you both might not be a good fit for each other.
5. Ask for references. This is not a deal-breaker; many people want their planner to maitain their confidentiality but if a planner can give you references to 2-3 satisfied clients, that's a good sign.
Attn @K_R_Sushil as you'd asked for this. Hope you find it of use. Sorry for the delay in addressing this.

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More from @LifeAfterFI

3 Jan
Q: Why do you continue with a full time job when you've reached #financialindependence?

Answer below:

👇
First, I've reached FI only a few months ago. Yes, I had a buffer in my target number and felt FI only once I reached 105% of that "buffered" target.

Nonetheless, it's been a raging bull market and I'm aware that a deep correction can reduce my net worth to non-FI status.
Second, assuming market stays flat or goes up, my savings rate will get me to #financialfreedom in next few years.

By FF, I mean that I will have a fat(ter) emergency fund, enough saved up to go for a few dream vacations, plus some other life goals.
Read 5 tweets
11 Dec 20
Have had many ask how much money is enough for (presumably early) #financialindependence in India. Is it 25x, 30x, or 40x of current annual expenses?

My opinion.

//THREAD// 👇
1/ The first thing we come across when researching financial independence is the 4% rule – 25x your current annual expenses saved = FI. Many early retirement bloggers also preach this so let’s dig into this a little bit.
2/ This is the result of the 1998 US-based Trinity University study which found that using a 4% withdrawal rate on a 75:25 stock:bond portfolio over 30 years had a success rate of 98%.

Let’s understand the assumptions therein.
Read 26 tweets
7 Dec 20
Nothing worthwhile is achieved without mistakes. I’ve made my fair share on the path to #financialindependence

//THREAD// 👇
1/ When I first started investing, I didn’t have clear goals. I’d simply save up. While that’s not the worst thing, it meant my capital allocation was not in line with (then non existent) time-based goals and hence, I didn’t take enough risks for first 1-2 years.
2/ At one point, I probably had 30-40 different funds but without enough understanding of the underlying investment strategy, ideal investment horizon, risk, or tax implications. I was a sucker for NFOs. It took me over 12 years to prune my MF portfolio
Read 15 tweets
1 Jan 20
Started the new year by watching Playing With Fire documentary (@PlayWithFIRECo). Very well made with many nuggets of #FinancialFreedom wisdom which I'm putting down here as thread for handy reading. (1/n)
@PlayWithFIRECo It's more important to be rich than look rich because it allows you to focus on the things important in your life. (2/n)
@PlayWithFIRECo Spend lavishly on things that you care about, but cut back ruthlessly in other areas. Don't get swayed by society's expectations of what you should spend on. (3/n)
Read 18 tweets

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