Just like we face health and emotional problems, we are knocked over by our financial problems too. And Just as we seek professional help for our health and emotional setbacks, so must we imperatively hand over our financial problems to a person who has the immense and specialized knowledge to dole out our sinking ship. If you want to get rid of such unnecessary, yet awkward complications, you should seek the help of finance brokers. But before moving ahead with any such contemplation.
Also Read: What Does Net Asset Value Of Mutual Fund Mean?
It is essential that we avoid the 5 mistakes that we tend to commit:
1. Get confused between brokers and planners
Most of the times, people confuse finance brokers with planners, considering them to be one and the same. This misconception that the duties of these two are the same, leads you to hire only one and rely on the one hired, with the entire job thereby making it messy and chaotic.
But, there is a marked difference between the two and it is essential that we understand what that is to avoid any confusions. A finance broker is someone who handles just a single part of your financial problem whereas the job of a financial planner is to supervise your entire financial portfolio which includes taking care of insurance, planning of estate and tax, investment management, etc.
2. Avoid a background check
Since we are leading a fastidious life, many a time we forget to discuss and plan carefully before we hire finance brokers. This can end in a real disaster. Nobody should take financial matters casually. It is essential that any financial planner or broker is engaged only after intensive research on them. If you have someone in your mind, you can always go online and look up their reputation, career graph, background and success rates. You can always ask around for recommendations to seek the best in case of financial matters. Recommendations are extremely beneficial as they give you an insight into the modus operandi of the finance broker.
3. Are not clear about what we are being offered
This is the most common mistake one tends to commit before he hires somebody like a finance broker. A bad broker can cheat you while feeding you with lies about your financial issues. Therefore, it is important that you know about the services you will be getting in return for your money. Once you know about these matters in detail, the finance broker will not be able to mislead you.
4. Misguided by the personality of the broker
This is a very silly mistake to commit, to begin with. If the person appears to possess a charming personality, we often forget to verify the essential qualifications of the person. This is prohibited, a strict ‘no’. You need to know whether the applicants possess sufficient knowledge before you them. If you are not satisfied with their qualifications, you don’t have to hire them. Interview more than one person until you are satisfied and find what you are looking for in a finance broker.
5. Clueless about the current market trend
If you don’t know about the latest market price trend, the kinds of service the finance broker offer, you won’t be able to know what kind of compensation you should mention to the brokers. You must be aware of the current compensation amount so that you can offer something valid and legitimate to the broker.
It is only when we seriously approach a financial broker that we will be able to rid ourselves of any contingent financial situation we are stuck in. A little carelessness may cause us to lose our hard earned money in a jiffy.
Once you get the kids raised and the mortgage paid off and accomplish what you wanted to do in life, there’s a great feeling of: ‘Hey, I’m free as a bird.’
By – Dick Van Dyke