On 31st December, it's time to make new commitments. When it comes to financial management, we covered two resolutions here (Bye bye over optimism) and here (Bye bye procrastination).

To our mind, the first resolution about money management should be to take financial advice after understanding the advice. In fact this is a bundle of two resolutions rolled in one!. One, find the right advisor and two, understand the advice before acting on it.

Here are some pointers to help you with the above resolution:

1. Learn to question the advice you receive from your financial advisor.
2. Every piece of advice is not necessarily good advice.
3. Understand your own investment behavior and financial goals.
4. Ask your advisor to help you understand your risk profile.
5. The advisor must be comfortable in disclosing the commissions that he gets for selling the product he is recommending.
6. The product must be aligned to your investment profile.
7. The product must also align with your financial goals.
8. Never get intimidated by the fancy jargons that financial professionals use.

Related links to above story

You may be interested in the following pages on our site:

• Investing/welcome-2012-bye-investing-mistakes.html
• Investing/investing-mistake-over-optimism.html
• Investing/investing-mistakes-procrastination.html
• Investing/what-is-an-investment.html
• Fundamentals/what-are-the-common-investing-mistakes.html

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