Dreaming about a career that gives you a secure job, fame, money, career growth and satisfaction? A career as a financial planner can be your ideal career option. As a financial planner you need to work with numbers and with people. A course in financial planning teaches you how to save, spend and invest intelligently.
History of Financial Planning
The financial service sector has come a long way the last decade. Earlier there were distinct divisions within the industry such as banks, brokers, agents, mutual fund agents and so on. So an individual needed to go to the bank for taking loans, consult brokers for investments. Mutual funds were a completely different sector.
This made people long for a holistic approach towards financial planning. There was need for planning for children’s education, retirement, emergencies etc. Thus, financial planning, a relatively young profession, emerged.
Professional financial planning takes money management a holistic approach towards managing an individual’s financial resources. Financial planners make recommendations for growing and preserving wealth, minimizing tax, retirement benefits, insurance, investment planning – and more, depending on the client’s financial status.
Financial Planning – an Overview
“Financial Planning is the process of managing the financial resources of an individual in a manner that helps him save and invest wisely.” As a financial planner you need to interact with people and find out about their needs.
Based on each individual’s financial strength, you will need to plan for their savings, taxes, retirement planning, investments and so on. Financial Planning equips you to create a comprehensive strategy to manage the financial resources.
A good financial planner has a deep understanding of investments, taxes, retirement issues, insurance, benefits and more. One of the most important assets of a financial planner is the ability to listen.
A Financial Planner helps his clients figure out their financial needs and work out a strategy to fulfill those needs. The various responsibilities include:
- Defining client-planner relationship
- Establishing the client-planner relationship
- Gathering data for clients
- Analyzing the financial resources
- Evaluating client’s financial status
- Developing and presenting Financial Planning Strategies
- Reviewing of Financial strategies
- Implementing the strategy
- Monitoring the growth level of funds
- Giving advice about investment and savings
Financial planners need to constantly interact with advisors, attorneys, accountants, trust officers, investment bankers, and tax officers.
Financial planning is an intensive research-based and stressful profession. Many financial planners device comprehensive plans for their clients, handle a specific interest and financial goal, planning for retirement, buying a home, investments, taxes etc.
A financial planner uses questionnaires and personal interviews to put together a client profile. The profile includes details on major issues like financial objectives, current income, investments, risk, expenses, tax returns, insurance coverage, retirement programs, estate plans, inheritance, benefits and more.