A reader once asked me if it is possible for a financial planner to grow her portfolio for her, but pay her for any losses if her money shrinks for any reason. It was a jaw-dropping email.
People are attracted to the idea of having a financial planner, but the expectations have to be clear from the very beginning. This video should give you an idea what financial planners should and cannot do for you.
July 23rd, 2008 at 9:33 pm
@alijeffty.
long time no “chat” in these forums : )
anyway, some comments:
- in my experience annual portfolio reviews are the minimum, semi-annual, the norm, and quarterly, optional, depending on the portfolio and the client.
- aside from a monthly retainer fee, how else are fin. planners in the phils. compensated?
July 23rd, 2008 at 4:16 pm
@joef and allijeffty
thanks for the detailed info. My real problem is i have plenty of cash but dont know exactly what to do with them coz im afraid to invest it here abroad. Another problem is im still out of the country as for the moment but i would like to get hold of your contact details once i hit town. will be glad to talk to you guys. Re. frequency of meeting tamang-tama coz i’m going home for vacation annually.
Once again thanks.
July 23rd, 2008 at 8:18 am
Hi Salve,
Do you have any article on the recently offered RTB for small investors like us? Thank you
July 23rd, 2008 at 6:08 am
Hi dinarman,
the initial “getting-to-know-you” meeting is usually free of charge, this is where the prospective client and planner establish whether a mutually trusting relationship is possible as you may have to disclose personal information such as your current financial status, household income/expense experience, goals and objectives etc. and the planner on the other hand would have to show proof of his competence.
then the planner would prepare a proposed financial plan based on the info you provide on a set of questionaires a planner would ask you to accomplish
the fee for independent financial planners ranges from a straightforward monthly retainer of Php 2,000 up (plus 12% VAT)depending on the complexity of your requirements and the number of consultative meetings required (usually one hour sessions) or as a percentage of assets under management (size of investible funds)
after the initial plan has been implemented you can now decide how often you meet for a review and possible “rebalancing” of your portfolio (suggested frequency is once a year)
then you should be on your way to financial security
thanks,
July 22nd, 2008 at 9:28 pm
the fee can range from a cup of coffee, a fixed retainer for the duration of the work, a percentage of your problem or at best a time and charge based on the amount of time you spend with the FP. I have seen doctors in the early years of their career go on house calls. As they become more prominent, they dont do that anymore but patients go to them now. Since financial planning is in its infancy stage in this country today I dare say its not that expensive. If its not that complicated a question, you can send me an email. Salve can provide you my address if you are nice to her. If it requires extended work, I can direct you to a Financial Planner. I have a list of people in the practise. If you want it free then you can volunteer for a second round of the money maker,that is if Salve will do it one more time.