Financial Planners

Establishing and defining the client-planner relationship Gathering client data including goals Analyzing and evaluating the client's current financial status Developing and presenting recommendations and/or alternatives Implementing the recommendations Monitoring the recommendations

6 step financial planning process

10-17% of their income

Americans should save how much for retirement

a person who receives something good from someone else such as an inheritance

Beneficiary

can enhance your reputation, broaden your employment and advancement options, as well as increase the types of products with which you're allowed to deal

Certification Exam

Where you work and the level of services you provide clients will determine which licenses and certifications you need to become a financial adviser.

Certification and License

A certified financial planner works with individuals to help them understand their options and make financial decisions suited to their personal financial situation and goals. Because of the nature of their work, people place a good deal of trust in these individuals.

Certified Financial Planner (CFP) Certification

CPA is the gold standard in the accounting world and also plays really well in a finance career path. The CPA curriculum consists of auditing and verification, business environment and concepts, financial accounting and reporting, and regulation. Becoming a Certified Public Accountant (CPA) gives an accountant higher standing in the eyes of business contacts, professional peers, regulators, and clients alike.

Certified Public Accountant (CPA) Certification

candidates must successfully complete three difficult exams and gain at least three years of qualifying work experience, among other requirements. In passing these exams, candidates demonstrate their competence, integrity, and extensive knowledge in accounting, ethical and professional standards, economics, portfolio management, and securities analysis.

Chartered Financial Analyst (CFA) Certification

interviewing clients, analyzing financial information, recommending financial plans and monitoring outcomes

Common Duties

collection of legal documents the specifies property, medical, and family decisions. 5 components: Will, Living Trust, Power of Attorney, Health Care Directive, Beneficiary Designations

Estate Planning

Legal obligation of one party to act in the best interest of their client

Fiducuary Duty

A specialist that works with individuals and businesses to guide them in making budgetary, savings and investment decisions.

Financial Planner

Involved in controlling, analyzing, or evaluating potential credit risk, liquidity(cash) risk and market risk as well as non-market related financial risks. FRM holders perform a large array of functions connected with risk management within asset management firms, investment banks as well as in government agencies and corporations

Financial Risk Manager (FRM) Certification

With a health care directive (sometimes called an advanced directive), you can direct how you'd like your future medical care handled. This includes your wishes regarding life-prolonging care, certain medicines, etc.

Health Care Directive

Gain valuable work experience, explore the career path, develop and refine skills, network with professionals in the field, seek a mentor, gain confidence, transition into a job.

Internship

Assets you register into a revocable living trust can be managed by your named trustee if you become incapacitated and may bypass probate at your death.

Living Trust

decline assistance from a financial planner

Majority of Americans

Allows you to name a person or entity to make decisions on your behalf if you are unable to do so yourself (in cases of incapacity, etc.).

Power of Attorney

Are you a fiduciary FP, types of certifications, compensation, support, etc - Review Lesson 4 for more responses

Questions to ask a financial planner

A bachelors degree - can be in finance, business, accounting, marketing, economics, law, etc.

Required Education

good communication, interpersonal skills, analytical skills, in addition to listening skills

Soft Skills

Suitability rule states that firms and their associated persons "must have a reasonable basis to believe" that a transaction or investment strategy involving securities that they recommend is suitable for the customer.

Suitability

False

True or False: You need to be wealthy to seek guidance from a CFP

move beyond your company;s 401(k), Retirement, personal life change, multiple goals (long-term or short-term), receive a large sum of money, self-employed, estate planning.

When to hire a FP

a will provides direction for the distribution of your property and the care of any minor children after your death.

Will

self-employed, banks, investment firms and other businesses

Work Location