Fee-only Financial Planning
The Financial planning service provided by me is based on an up-front fee chargeable at the time of start of service. There is no commission received by me from any of the products like Life Insurance, Fixed deposits, Mutual funds etc. Your fee is the only source of remuneration.
The life insurance agent sells their Life insurance plans and are paid commission from the premium paid by you. What this means is that the agent has a vested interest in selling the product which pays him/her the maximum commission. This may not be in your interest.
The mutual fund distributor sells regular plans of mutual funds. These regular plans bear a higher expense ratio when compared to the direct plan of the same fund. The additional expense ratio is charged to pay commissions to the fund distributor. This compromises the returns for you and is not in your interest.
- The first step in financial planning is the letter of engagement. This needs to be signed by the client to start the engagement
- KYC is a the second step. For KYC, you need to share PAN and an address proof
- You will need to fill in your data in the client networth data template. I will share this template. You need to share your personal data, Income/expenses, assets/liabilities, goals, insurances etc in this template
- You need to fill and submit the Risk profiling questionnaire. This will enable me to categorize you as a conservative or moderate or a high risk taker
- in the first meeting, we will discuss and review your data, your assets/liabilities and your goals
- there will be a total of 4 meetings, each of 1 hour duration, 1 per week. At the end of 4 weeks, the financial plan will be finalized
- I will share the financial plan as a google sheet with an investment plan for each of your goals. You will need to implement the plan
- The data which you have given will be the basis for the financial plan. So please provide the complete financial data
- there will be a review meeting after 6 months
- You can reach out over email or whatsapp in case of any questions anytime
- Review of life insurance; I will give my recommendation if additional term insurance is required
- Review of Health insurance
- Review of personal accident insurance
- Risk profiling to understand you risk profile
- Review of Endowment policies and ULIP policies if you have them in your portfolio; I will review and give you advice when you need to continue the policies or make them paid up or surrender them
- Review of goals; whether all goals can be supported by the current assets and the monthly savings
- Plan of monthly investment required for each goal
- Review of emergency fund
- Tax efficient investment advice
- Knowledge sharing on equity mutual funds and debt mutual funds
- Knowledge sharing session on direct equity for those who are interested
- Generic advice on will preparation
1. I will only give you advise and recommendations. Each product that I recommend will have its own risk/return and I will not be able to guarantee any of the returns.
2. Direct stock investing advise will not be covered.
3. The implementation of the advice is to be done entirely by you. I will give you generic guidance on this.
4. The tax planning is restricted to efficient tax related advise; I will not be helping you to file your income tax return.
5. If I recommend the services of another professional such as Insurance adviser or Chartered Accountant, I take no responsibility in the quality of their service. You are free to choose any other service provider.
The fee for the first year is Rs. 20,000.
The fee for the second year onward is Rs. 10,000 per year.
Yes, there is a one-time review of your portfolio if you do not require financial planning. The fee is Rs. 6,000. This includes the below:
- Review of mutual funds/stock portfolio
- Specific investment related questions
- Specific lifestyle choice related questions
- Insurance related questions
- Tax planning related questions
- There is only one meeting of 1 hour in this plan
- Document of advice is included
No, I do not meet any clients face-to-face. All the meetings will be online only
I am based in Bengaluru. You can contact me on the email firstname.lastname@example.org or write a note on the contact page. You can also reach me on 9901022744 or WhatsApp on the same number. All the meetings are online using Google meeting. If you like to book a free intro meeting, please click here.