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I have been trying to think what to write so that the subject picks up and there is continuity and also if somebody reads only this page then it should be complete in itself. 

So here I go…..

You know when somebody asks me What do I do as a profession, I am say I am a Certified Financial Planner (CFP).

For a lay person, it means nothing. So the next question I get, what does your work involve ? (Actually it is a polite way of saying what does it mean ? )

Then I explain that in today’s times managing investments has a new meaning. It is not like it used to be earlier. 

I get a puzzled look.

So what has changed in so many years ? You keep money in a bank and then you get interest and that’s it. 

For people who have tasted equity, the highs and lows know it all. Atleast that what is communicated…..I know it all…been there, seen it, experienced it….

But then I have to explain the basics of investing…and how it impacts our real wealth today…..

Saving is so easy for an don’t need to explain to them…they know all of that. Its when you tell them what is investing and the difference of simple and compound interest ….they start realising how it impacts them. Some still don’t realise. 

In my workshops I give them examples : Have they ticked simple interest or cumulative on a Bank Fixed deposit form and they say they think it is cumulative but they don’t seem sure. They say they will go to the bank and check. This is because they have not filled the form themselves, the young MBA banker has done that as per his thinking.

So this way I give a simple example and go to explain further what is my role ? It is like handholding them at every stage where there is a financial decision involved mainly with big goals like education, marriage, divorce, retirement, dependents and so on. 

A CFP or a Financial Planner has  a generalist and a specialist role to play many a time. He is there at every event to take the person ( the client – though I don’t like to use that word)  through various events in a person’s life. For me, a client is an extended family. 

The banks have specialised areas / departments called Priority Banking, Private Banking , Preferred Banking and many similar sounding terms. 

A small boutique firm is like a family doctor attending to you to help / aid you in your life’s financial decisions, be it a loan or an investment. Its important to see the credentials and the number of years of experience behind the firm. This is an evolving area and an important one which can impact your family’s wealth. 

We have seen what is a role of a Financial Planner. Will get more in to detail next time…..sounds interesting ….wait….but study the above….and keep it in mind….



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