Fixed Fee-Only Financial Planning:
Financial planning is the first step toward a better financial future for your family. It helps you recognize your current financial situation along with your financial goals and provides a road-map. If you follow this road-map with discipline, it can empower you to live a life you want to live.
A brief about the work I do and the process I follow:
Primarily, I work on financial planning of resident Indians and NRIs who do most of their investments in India (I do not work with US and Canada NRIs). My job as a financial planner is to set your financial house in order and align your savings and investments with your goals and objectives; so that you have enough funds available at the time of need. The emphasis is on avoidance of serious mistakes or losses and to be free from effort, annoyance and the need for making frequent decisions. I suggest Equity Mutual Funds for equity investments. I do not provide stock advice.
The fee for the financial planning engagement is ₹25,000. The duration of the engagement will be six months. I will be available for the need based consultation during the duration of the engagement. The fee for subsequent review will be ₹10,000. The review engagement will also be of six months. There is no compulsion to review immediately after the end of the financial planning engagement. The client can enter into the review engagement when he feels the need for the review.
I will be the sole point of contact for you. I do not delegate financial planning and advice work to anyone else.
If you decide to hire me as your financial planner, I will mail you a formal letter of engagement which details the terms and conditions of the engagement. If you agree with the terms of engagement, you shall mail me the scanned copy of the signed letter of engagement. After receiving the signed copy of the letter of engagement, I will share my bank account details with you. The engagement shall begin once I receive the fee in advance.
After receiving the fee, I will share with you a data sheet in google sheet format. You shall provide all the details required for financial planning in the data sheet.
After receiving the data, we will do 4 financial planning sessions of 1 hour each.
In 1st session, I will try to understand your financial and life situation, your financial aspirations, goals, objectives and your knowledge of personal finance and investing.
In 2nd session, we discuss the equity part of portfolio construction for retail investors.
In 3rd session, we discuss the debt part of portfolio construction for retail investors and the logic of asset allocation.
The 4th session is the financial planning session in which we arrive at a clear financial planning action plan.
In some cases, where client is already at DIY (Do It Yourself) level, 4 sessions are not necessarily required. In few other cases, if required, I take more than 4 sessions. I share a google sheet with the help of which financial planning discussion is done over the phone call. I use Google hangouts for screen sharing. I do not do video calls since I find it distracting and I cannot focus on the work at hand.
I usually mail the financial plan document in PDF format within a couple of days after we complete financial planning sessions.
Please Note : Investing is all about the future, and we do not know exactly how the future will pan out. Therefore, a better approach is to do financial planning calculations using conservative assumptions to get an idea about the savings and investments required to achieve financial goals; and then take money management one year at a time. I try to arrive at an agreed upon action plan for one year and the set of rules for the client to follow. Client’s job is to execute the action plan and stick to the process.
After the financial plan document is delivered, clients can contact me any number of times to discuss anything related to personal finance, investing and their own financial planning during the period of engagement. If the client’s financial or life situation changes and there is a need for modifications in the plan, I do additional sessions.
I work on the advice-only model and will not follow-up with all my clients about the execution of the plan. Therefore, implementation of the recommendations would be the responsibility of the client.
I believe that my primary job as a financial planner is to educate my clients about the basics of money management, practicalities of investing and financial planning heuristics, so that they become capable of managing their investments on their own. You can connect with me over WhatsApp to schedule an introductory call.