Fee-only Financial Planning
The Financial planning service provided by us is based on an up-front fee chargeable at the time of start of service. There is no commission received by us from any of the products like Life Insurance, Fixed deposits, Mutual funds etc. Your fee is the only source of remuneration for us.
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.
1. Identify your risk profile based on the past/current investing habits using a questionnaire.
2. Identify your life goals. For example Retirement, Children Higher education expenses. The current cost of each goal and expected time for each goal is defined.
3. We will gather information on your current net worth which includes real estate assets, outstanding loan amount, current financial assets etc.
4. We will work on the data given and prepare a customized financial plan for you in a period of 1 to 2 weeks.
5. Based on our recommendations, you need to work on changing your investments.
6. We will review the progress of the investments on a periodic basis.
1. We will only give you advise and recommendations. Each product that we recommend will have its own risk/return and we will not be able to guarantee any of the returns.
2. Direct stock investing advise will not be covered.
3. The implementation of the advise is to be done entirely by you. We will give you generic guidance on this.
4. The tax planning is restricted to efficient tax related advise; we will not be helping you to file your income tax return.
5. If we recommend the services of another professional such as Insurance adviser or Chartered Accountant, we take no responsibility in the quality of their service. You are free to choose any other service provider.
There are two services which are part of financial planning. The first one is the one-time fee for preparation of financial plan is Rs. 10,000. The second is the quarterly retainer fee of Rs. 2,500 and it is billed half yearly. The fee to be paid at the start of the engagement is Rs. 15,000. There is a 20% discount for single women with net financial assets of less than 1 crore.
At the end of the first six months, the retainer fee of Rs. 5,000 is applicable for the next six months.
Yes, there is an hourly fee model if you do not require comprehensive planning. The fee is Rs. 3,000 per hour which can cover specific questions regarding:
- Review of mutual funds
- Specific investment related questions
- Specific lifestyle choice related questions
- Insurance related questions
- Tax planning related questions etc.
We are based in Bengaluru. You can contact us on the email email@example.com or write a note on the contact page. You can also reach us on 9901022744 or WhatsApp on the same number. If you reside in another city, we can still provide the financial planning service through Skype video conferencing.