Financial planning isn’t rocket science, go for it

Many people waste a lot of time thinking when and how to begin a plan. This could prove costly in the long run
Madhu T TNN
Rajesh and Sona have been planning to meet a financial advisor for the last three years. They have, in fact, called up a few. But couldn’t meet them due to different reasons. One, they couldn’t find a convenient time. Two, they really didn’t have any idea about finance. They thought they would cut a sorry figure before the so-called expert. Then they thought it would be better if they meet the person after they improved their finances. Both husband and wife splurged on all good things in life and their finances were always a delicate topic. They hardly had a month’s expense in their savings account. So, both of them decided to cut down on their expenses and save up a bit. Then, they would meet an advisor, who would guide them how to save for their impending world tour. And, of course, help them save for their retirement, too. Three years later, the couple has discovered that they haven’t been able to mend their ways. They are still spending the way they used to, and they also have a few loans outstanding. They had taken loan to buy a car, an expensive audio system and a plasma television. Now, what to do. That was the situation when we came across the couple recently. They wanted to know how financial advisors treat people like them. They were also curious about the entire process of financial planning. They said they had no idea about finances, and didn’t want to make a fool of themselves before any financial expert. But they know one thing for sure. They didn’t want to waste their time doing things on their way. Well, we asked a few financial advisors how they deal with couple like our protagonists. Surprise, they are not alone in the world. Apparently, there are many people who dread going to financial advisors. Thank god, dentists are not the only dreaded ones in the world. “We have seen that a lot of people have this misconception about finances. They think their ignorance could lead to funny situations. It is not true,’’ says an investment advisor. “In fact, I tell them I pray everyday that people should be ignorant of finances, so that I would get a lot clients.’’ He is quick to add on a serious note that some people make this as an excuse because they don’t want to face the reality. Says a certified financial planner, “most of these vows of ‘I will clean up my act before meeting a financial advisor’ just stay as a mere thought. If you don’t know what to achieve or how to save or invest, how would you ever learn to clean up your act. You would continue the way you are and then you would waste precious time.’’ He then recounts the story of one of his recent client, a retired person, who was shattered when told that he didn’t have enough savings to maintain his lifestyle. “Most people think they are doing well, because they don’t work with real numbers. When you are faced with such a situation after retirement, there is very little you can do about it.’’ Well, the moral of the story is: nobody is sitting behind a glass door, waiting for you to open your mouth for free entertainment. Financial planning is not rocket science. It is just putting a plan to make sure that you meet your various life goals without much trouble. You don’t stop going to the gym because you don’t know anything about exercising. Similarly, you don’t have to be ashamed of your lack of knowledge about financial matters. Yes, you don’t know much about it. That is why you are hiring a professional to do the job. Why cringe then?