Source/Contribution by : NJ Publications
As the year-end approaches, we have all begun to look at the past year and think of the new things we want to do in 2019. We begin to make resolutions and try to stick to them. But this year, don't just make new resolutions but also learn from the past years. Resolve to sit and look at the year gone and what you did and what you didn't do. Look at all the things you wanted to achieve at the beginning of the year and where do these goals stand today. Have they been achieved? Are they still pending? Did you change your mind about some of them? And which one of these goals do you want to carry to the next year?
To review your financial goals as an advisor, ask yourself these questions
Have I achieved my targets?
At the beginning or even during the year, you must have thought of reaching a particular amount for the corpus or hitting a number for total clients you wanted to achieve during the year. Look at these goals. Are you close to the total corpus amount? Were you able to achieve the desired number of clients?
If your answer is yes, it may be just the right moment to pat yourself on the back, but also the right time to review what worked for you. What I mean here is, what is the strategy and building blocks that helped you achieved these goals and are these strategies feasible for the future?
If your answer is no, look at the reasons why you were not able to achieve them and analyse solutions which will help you overcome these blocks. Was there something that you should have tried or something which you tried but shouldn't have? Make a plan as to how you will achieve this goal in the coming year and the new or old and revised techniques you will be using.
Have my clients achieved their targets?
One of the important aspects of being a good advisor is being in communication with your client and being approachable. Your clients have certain expectations from their investments and also needs. As an advisor, your job is not only to advise them with their money once, but also look whether the advice is working or there are changes that need to be made.
Another reason why you should take time out and speak to your client, if you already haven't, is the volatility that the market has portrayed this year. Lingering effects of demonetization and GST, elections, global market cues, rising and falling crude prices, changes in growth expectations etc, have all been bundled in 2018 and thus has affected the markets. The returns have been volatile and in fact, the returns for 2018 may be below expectations for a lot of portfolios. Thus, as an advisor, you should speak to your clients, especially the new ones, about the performance of their investments this year and help them understand that this is all short-term and they need to cut out the noise. It is the right time to teach them patience with their investments and make them understand that it is important to stick to their investment philosophies unless a fundamental change in the philosophy is required.
Reviewing that the investments are in line with the client's long-term goals
As the new year begins, also begins the last three months of the financial year and gives you just the right time not only to see your performance but also make amends to it. It gives you the time to make or re-balance investments for your clients which helps them with maximum tax savings and also enough time to undertake portfolio review and re-balancing, if required, in order to make sure that the investments are working towards the big picture i.e. their long-term goals.
On 1 January 2019, one has three months to the end of the financial year which is enough time for one to project his or her earnings and expenses for the year, make tax calculations and see what deductions and exemptions one can avail. It also gives one enough time to compare various investments and their risks and returns to make sure they choose the right product for saving tax. Tax planning should be a major objective at the calendar year start. The review also gives one enough time to re-evaluate the long terms goals and needs and formulate a plan on how to go about for the next year.
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