What do you think about a financial planning camp?

Published: July 25, 2015 at 9:15 am

Last Updated on

I would like to run a crazy idea by you.  What do you think about a financial planning camp in which a fee-only financial planner comes to your city and meets you (and your spouse, if applicable) in private to chalk out a financial plan for you to implement?

If you are DIY investor, such  a camp may not be of interest to you. Nonetheless, please let me know your views, pros and  cons etc.

If you an investor who needs professional help, will you sign up for such a camp?

How does it work?

A small group (5/6) of people sign up for a financial planning camp to consult a fee-only financial planner. On a pre-agreed date, the planner meets those who signed up one by one.

The fee-only planner will be a CFP with SEBI investment advisor registration. He/she will not have any kind of tie-up with a third party (including direct mutual fund plan feed providers). The planner will only recommend direct mutual fund plans and guide the client wrt implementation. There will be a fixed fee for financial plan creation and a fixed fee for review.  Planners who charge a fee which depends on portfolio size will not be considered.

I locate such a planner and find out if he/she is interested. If yes, I announce the camp. Readers who sign up, will contact the financial planner and decide if they are comfortable with such an engagement.

Once there are 4-5 interested parties, the planner travels to the city for the camps.

Read more: Pay for financial advice, but insist on direct mutual fund plans

What do I get out of this?

I only contact the planner and announce the possibility of such a camp. Readers take it up from there.  There is no monetary arrangement between me and the planner.

I get the satisfaction of promoting advisory that is free from conflict of interest.  Nothing else.

Why am I worried?

As of now, this is only an idea. I have not talked about this with anyone in private. I write this with a lot of trepidation.  Something about this worries and I cannot put a finger on it. I need your help to analyze this idea. Am I missing something?

I can think of a few shortcomings:

1) people who sign up, start comparing the planners advice with what I have written here and worry as to why it is different.

2) Competence like comfort level is subjective. I can find financial planners who satisfy the above conditions. In  addition, I will choose a planner who openly promotes direct plans, does not look down upon DIY, and is generally secure about his/her abilities. Beyond this,  it is not possible for me to evaluate their competence. Those interested must determine their comfort level with a planner and take a call based on this.

3) Engaging a financial planner demands a certain level of maturity. The client cannot assume that they would do better that DIY investors or that the planner will prevent notional losses from equity. There are standard legal disclaimers to avoid this possibility and I need to add some too.

Legal disclaimer or no legal disclaimer, my reputation is on the line. The easiest way to protect it is to ‘do nothing’.  I think I must stick my neck out to promote fee-only financial advisory.  It is an itch that I feel like scratching.

Should I satisfy my urge or suppress the itch, will depend on your feedback.

Do share if you found this useful
Share your thoughts on this topic at the  Reddit freefincal_user_forum

Reach your financial goals like a pro! Join our 1600+ Facebook Group on Portfolio Management! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site. Follow us on Google News Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps