Who am I?
I am a SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process. (SEBI RIA Registration No.INA200010889)
I am a Certified Financial Planner (CFP) since 2011. This is a mark of excellence, in education, examination, experience and ethics, granted by Financial Planning Standards Board, India to individuals who meet the stringent standards of education, examination, experience, and ethics. It is the most prestigious and internationally accepted Financial Planning qualification recognized and respected by the global financial community.
Along with this, I am also running a Financial blog (www.basunivesh.com) since 2011. BasuNivesh Blog is currently considered as one among Top 10 Financial Blogs in India with monthly pageviews of around 4,25,000+ (Google Analytics). Few statistics of my blog are as below.
About Blog Statistics (Last updated on 1st April 2019)–
BasuNivesh is considered as one among Top 10 Personal Finance Blogs in India.
Monthly page views-4,25,000+ (Google Analytics)
Number of articles-680+
Alexa Traffic Rank World-62,228 (lower is better)
Alexa Traffic Rank India-4,374 (lower is better)
What is the meaning of Financial Planning?
Financial Planning is a process that helps you make informed decisions about money that can help you achieve your goals in life. Do remember that it is not just about buying products like Life Insurance, Mutual Funds, FDs or Bonds.
Managing your finances or money matters nowadays a stressful even for the savviest investors. Global research by FPSB (Financial Planning Standards Board) finds that most consumers feel challenged by their finances.
FPSB partnered with GfK, a global research firm, did the survey with more than 19,000 people in 19 territories. The findings are as below.
- Among consumers surveyed, 68% rate “trustworthiness” as a very important consideration when choosing a financial professional – higher than any other consideration. But a similar percentage of consumers say they don’t know whom to trust when it comes to receiving financial advice.
- Consumers with a financial plan are more confident – and those with a written, comprehensive plan are nearly three times more likely to feel strongly confident about achieving their life goals.
- Just 22% of consumers feel strongly confident that they will achieve their financial goals.
Going by the above research, it is confirmed that for the majority of investors TRUSTWORTHINESS is a BIG factor when it comes to money matters. Because nowadays you notice that world is filled with SELLERS in the name of advisers, bankers, planners etc.
Hence, identifying the CONFLICT-FREE planner for you is the biggest task. Luckily due to recent SEBI RIA Regulations, now it is a reality to many of you that you can easily identify the Fee-Only Financial Planners who are registered with SEBI as Registered Investment Advisers.
Difference between Fee-Only Financial Planners and Fee-Based Financial Planners
Let us understand first the difference between Fee-Only Financial Planners and Fee-Based Financial Planners.
A Fee-Only Planner is someone who charges a fee for financial plan creation and advisory and does not receive any kind of commissions/incentives from mutual fund houses, insurers or other financial product sellers. Because he is in no way associated or represented by Mutual Fund Companies, Insurance Companies or any other form of the product. Hence, his only earning is from the fee he charges to his clients upfront.
A Fee-Based Planner receives a fee for financial advisory and also receives commissions from fund houses and/insurers etc. for the products he/she recommends. The investment is done through the planner. Hence, there is always the possibility of CONFLICT of interest when you work with such fee-based planners.
Steps of Financial Planning
The steps of the financial planning process are as below.
# Establish and define financial planning process
During this process, I interact with you to know more about your current financial situation, past experience of investment and also the expectation from your end from a planner. Also, I discuss and define the fee structure and the time horizon it takes to complete the process.
# Data Gathering
Once you agreed for the service, then I will send you the datasheet, which you have to fill and send it to me back. This is the data gathering process. Make sure to share only finance-related data and also accurate.
# Analyze and assess the financial status
Once you share the data with me, then me (the planner) and you must sit together to understand each data you shared with me. Because before I proceed with planning, I must understand what each financial data meant for you and how much important for further steps of financial planning.
# Develop the financial planning recommendations and present
After this process, you have to give me around 10-15 days of time to design and develop a financial plan for you. This is the mirror of your financial life. Hence, once I share this file to you, then you must understand each wordings and steps mentioned there.
You have to list down all your doubts for next meeting.
# Implement the financial planning recommendations
Once you understood the whole concept of financial planning report, then the next step is to implement it. Implementation means rejig your current investments (if necessary) or start afresh investments.
As I already referred, we are not associated with any financial company to sell the products and earn the commission, the implementation part will be at your end. However, I suggest you the best way or implementing based on the products I recommended.
# Review of Financial Condition
Annual review and monitoring will ensure that you are on the correct path. Hence, it is an ongoing process of any financial planning process.
Revise the financial plan required sometimes due to changing circumstances in your lifestyle, family needs, employment and other external factors. Hence, such revision will also be part of financial planning process.
What involves in Fee-Only Financial Planning?
It involves the below services as a glimpse.
- Assess your current Financial Life.
- Review of your existing investments like Mutual Funds, FDs, Life Insurance.
- Helping you to identify the financial goals of your life.
- Creating a Financial Plan to achieve those financial goals. This also includes insurance needs analysis like Life, Health and other types of insurances (if necessary).
- Helping you to implement the financial plan either by rejigging the current investments or by recommending the fresh investments.
- Tax Planning but not ITR filing.
What you can’t expect from me?
# I will not give you GUARANTEE on any products or assets which you will invest.
# I will not suggest you direct stock investments as I am not authorized and also not an expert in that.
# I will not advise you to churn your portfolio once in a week, month or quarterly.
# I will not implement the plan on behalf of you. Becuase I am in no way associated with any company.
# I will not suggest/recommend new and hot investment trends just because you are interested.
# I will not suggest you to change in your portfolio just because there is a huge noise in social media.
# I will not help you in filing IT Returns. However, while investing, I will guide you on the tax-efficient way of investment.
The fee of Financial Planning Process
The upfront fee what you pay to me is the only earning source for me. Because I am practicing a complete Fee-Only Financial Planning Service. This fee is for my availability as your adviser for a year and not only for financial planning and review.
For Resident Indians-
Second year onwards-Rs.6,000.
For Non-Resident Indians (NRIs)-
Second year onwards-Rs.7,000.
How can you contact me?
Distance is not a barrier to us in this current world of technology. Hence, I can work with the clients who stay in Bangalore, Mumbai, Chennai, Kolkotta, Delhi or in any part of India and world. Because now with the advancement of technology like Skype and Whatsapp audio and video calls, it is now easy to meet and fix a meeting online. You can reach me through various means. My contact details are as below.
Sir M Vishweshwarayya Layout,