Successful financial planning is a collaborative effort between you and your trusted advisor. Long-term investing success will depend on the effectiveness of the client and the planner and role each one of them plays.
In this article, I would like to highlight the importance of understanding your role in a financial plan and your responsibilities.
Goal Setting
The client has the most important role to play in this aspect of financial planning. For the success of a financial plan, the client has to be absolutely clear about the goals and objectives s/he would like to achieve.
Accurate information
Just as you don't hide anything from your doctor when you want to get the best treatment, you should provide all the accurate information required to making a successful financial plan. Doing it can hamper the making of a successful financial plan.
Once the above two responsibilities are done and over with, do you think your role is over and the rest rests with the planner? Well, wake up and smell the coffee. In fact, the client has to be involved in each and every stage during the making of a financial plan. Why? Let us have a look:
Photograph: MIKE CLARKE/AFP/Getty Images
Also read: Lump sum or SIP? How to invest in bad times?
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