A Financial Sermon
No matter the needs or wants, we will need someone who is skilled on a particular area.
When we are sick, we consult our doctor. When we want to put up a house, we discuss things with our engineer. When we need an accounting service, we check with our accountant. When we need to have a good haircut, we seek for a barber. When we need someone to take care of our kids, we look for a nanny. When we need someone to drive for us, we get a driver.
No matter the needs or wants, we will need someone who is skilled on a particular area. And, most of the time, even if we are experts on the same field, we would still consider the idea of another practitioner.
The Problem
Not like with doctors, engineers, lawyers, etc., only a few realize the significance of consulting with experts on matters concerning finances or plans involving money. Sometimes, we are too confident of ourselves that we rely solely on our personal inputs in making decisions. We are very much attached to our personal beliefs and past experiences, and tend to relate everything to them; forgetting to keep abreast with the present state of things. We are fond of,
“This is my money and not your money…”
and, when things get wrong, it can all be over in an instant.
The financial professionals’ foremost enemy is the unmoving financial mind-set. For instance, a financial advisor who would advocate insurance for other people would say,
“I don’t need insurance!”
When this same person is struck by disability, critical illness or death in the family, he ends up saying,
“I should have had a contract!”
A financial professional would caution against investing in high-yield instruments offered by companies with questionable background and operations, yet people would still “invest” their hard-earned money. And so, people get ruined by scam. An investor who has not consulted a financial expert might end up putting a hundred percent of his portfolio in stocks, because he learned in a seminar that money is in stocks. When the financial turmoil comes in, who is to blame? These and many more poor mind-sets need the assistance of a financial practitioner.
Prepare Yourself
If you are to get a financial advice, prepare for it.
When you start thinking of the future and plan for it, you will need a consultant whom you can get advice for a particular financial goal. I always lay emphasis on “individual learning” or educating ourselves before meeting an advisor. This can be in the form of personal experience, reliable research you have or information fed to you. With these, you have at least the foundation for what you are getting into. When talking with finance professionals, be very vocal of the things you know. Yet, be open-minded with what he advises, especially if these differs from what you know. If you have no prior knowledge of the subject, you need to study.
Remember that this plan is for you. You should not just say “yes” to your advisor all the time during the conversation.
What You Need to Meet
The financial-planning industry has been producing competent financial planners to help you achieve your financial goals in life. Whether you want to effectively cut off excessive cash outflow; set up an investment plan; plan the college education of children; prepare the plan for retirement needs, plan for insurance needs or design an estate plan, a financial planner can help you plot the route you need to take to achieve the stated goals. Financial planners have links to many professionals who can help in materializing the plan, like accountants, financial advisors, estate planners and the like.
We need someone other than ourselves. We are not all-knowing. We need a mentor. Discussing your financial goals and other queries with a financial practitioner will give you the advantage of vigilantly preparing your future. This gives you a road map of your voyage wherever that is.
And so I say that when we are sick, we still consult a doctor; when we want to put up a house, we discuss things with an engineer; when we need an accounting service, we check with an accountant; when we need to have a good haircut, we seek the services of a barber; when we need someone to take care of our kids, we look for a nanny; when we need someone to drive for us, we get a driver; and when we need financial advice, we need to consult a financial planner/practitioner.
Don-Don Crisostomo is a registered financial planner of RFP Philippines. He is a Operations Senior Analyst of Deutsche Bank Group.
Source: http://www.businessmirror.com.ph/a-financial-sermon/
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