by Sanjeev Kumar Gopalakrishnan, Investing
16 Oct , 2018

Why do you need an expert financial advisor?

Most of us have a laser-sharp idea about the short- and long-term life goals we would need to achieve and the kind of lifestyle we would love to lead. We are also equally aware that we need a steady source of income to ensure that our life goals are met and that our lifestyle is not compromised. But just focusing on earning or receiving a steady source of income is not enough, we need to plan our finances so it delivers its best to us at all times – be it to meet our dreams or to manage a contingency. But all of us are not experts at handling the complexities of financial planning and implementation. We need a professional expert who can help us with this activity. That’s where the financial advisors or investment advisors come in. Who is a financial advisor? How can this expert help us solve our financial planning puzzle? Let’s find out.

Who is a financial advisor?

A financial advisor is a professional who guides us in understanding our current financial health, the financial gap between our current reality and future dreams, the general and specific life and financial goals that we should be focusing on, the package of investments and savings that will fit our requirement, tax planning, retirement planning, asset allocation, and wealth management. Our  financial advisors thus use their expertise and intelligent technology to help us understand our net worth and support us plan our lives, mapping our financial goals to our life goals.

How can a financial advisor help us?

A financial advisor or financial planner is our best buddy who can organize our finances and teach us the following elements

a.       Balancing our income against our expenses, savings, and spends

b.      Planning to reach our life goals such as children’s education, travel, home, etc.

c.       Planning for post-retirement life

d.      Setting aside a percentage of income as health and emergency funds

e.      Ensuring a healthy cash flow and tax planning

f.        Managing repayment of loans

Through a detailed and customized financial plan that takes into consideration your current financial situation and future financial goals, your financial advisors can help you gain, manage and retain wealth so you can comfortably reach your financial goals.

A financial advisor can also warn you in case your financial portfolio looks weak and suggest robust solutions to overcome the weak links. Such expert advice is precious especially in case of individuals who have limited equity exposure or hardly any knowledge of the financial landscape.

A financial advisor is your money specialist who can accurately assess your risk profile and suggest a perfect-fit investment profile including a healthy balance of short- and long-term investments, high- and low-risk plans, and completely help you manage your finances.

Steps in financial planning

An expert financial planner gets work done using a smart 6-step approach

 Step 1 – determine your current financial health

Yes, having goals is a healthy approach, but you should equally be a realist. So financial advisors start by performing an in-depth analysis of your current financial situation, so you can understand your weakness and strengths. They then provide solutions that help you refocus your priorities; for example, organizing repayment of multiple loans, spending a greater percentage of savings on home than on education, etc.

Step 2 – Create a goal-specific plan

Your financial advisors then help you come up with a clear road map for every goal – the time it should take, the percentage of income that you should allocate, and the risks involved in the journey, with milestones and review periods.

Step 3 – Define critical investment zones

They will help you define absolutely critical areas of focus – such as health plans, education plans, retirement plans, etc. All these are mandatory financial planning areas that you cannot ignore. They will also teach you how to calculate the value of returns.

Step 4 – Prepare a risk-based investment portfolio

With so many investment options available, you are often confused about the right mix of long- and short-term and high- and low-risk investments. Your financial advisors do this assessment based on your risk appetite and then plan your investment package. This will be a balanced package of equity and debt, assets and low-risk savings, and aggressive and traditional investment options.

Step 5 – Regular review and replanning

Your life goals, life situation, and the market changes – that’s not something that you can control. Hence your financial planners will also help you regularly monitor your investments and revisit the package to make critical changes that can help you gain despite any changes.


Final words …

Not all of us have the ability to master the art of financial planning. Hence ensure that you take the support of a registered investment advisor or financial advisory services with a strong track record who is trustworthy and capable. Your money will then be in safe hands

PrognoAdvisor is your trusted online financial planning service from India, with extensive expertise in understanding your specific financial and life goals and guiding you achieve these goals with confidence. Connect with our financial advisors at



 About The Author

Sanjeev Kumar G, an IBS Chennai Alumni, is a Certified Financial Planner (CFP) from India, since 2005. He has 22 years of experience and is an expert in various personal finance areas like portfolio construction, investment research, life insurance and financial planning.


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