How to have your first chat with a wealth manager, even if you’re broke

Start planning even before the first bonuses come in. A good expert will work with all kinds of clients, even those drawing their first salaries. An early start sets up a serious attitude to saving, planning, and puts money to work so it grows faster.

Get recommendations from friends and family and find an advisor who understands your interests: Trip to Brazil, a duplex, paying off dad’s loans, Nike Air auctions, whatever. Work with a fiduciary, someone who is legally bound to act in your financial best interest, rather than sell you products for their own commission. These experts charge a fee, usually a percentage of the assets they manage, or a flat or hourly rate. Or, sign up with an investment advisory firm which has representatives bound by fiduciary duty. “Don’t sign up until you are convinced,” Bose says. “And make sure the advisor is invested. You cannot be the one bringing all the ideas to the table or chasing them. Explore their inputs for at least three sessions and then invest the big assets.”

A good planner will know your risk tolerance and investing attitude. They won’t send you low-risk options when you are ready to bet bigger. They won’t press risky choices on the wary. “A good advisor will suggest investments based on your long-term financial goals,” Bose says. “They will hand-hold you through three to four cycles of investments, to help build your confidence.” Check for how much effort a planner puts in and how much they personalise their advice. “Anyone skipping to the recommendations stage is just a salesperson,” says Bose.

Over time, the duplex might take priority over the sneaker sales. Or loans will be paid off, leaving more money to invest. Expert planners usually sort your goals into two categories: ones you can get started on right away, and ones you can revisit later. “Focus a one-time investment plan, in which a lump sum is put into a particular scheme for a specific duration, and get the planner to work out which suits your income and expenditure style,” Bose says. Opt for step-up bonds that keep giving you money at regular intervals. Life insurance or FDs are poor long-term goals, says Bose. “Their returns are quite low.”

Targets should be specific, realistic and time-bound, says Bose. “Wanting ₹50 crore in 10 years sounds great, but if your monthly cash flow does not support that objective, it won’t work.” And keep an eye on what your money is doing. Planners should warn of underperforming funds or policies, and of funds that have lock-in periods and penalty clauses. If you’ve got a bonus, or are making a life change that requires more or less spending, clue them in. “Have a process in place that reminds and enables them to contact you at set intervals,” says Bose.

Vacations and cool cars are also worthy goals. They require a different approach to investment. “Those funds will probably need to flow into a low-risk arbitrage or short-term debt fund,” explains Bose.

Everyone needs to save for retirement. Any planner who invests your retirement savings in debt funds is just taking a shortcut, says Bose.