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essay about financial planning
financial planning summary
personal financial planning assignment
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What is a Financial Planner?
A Financial Planner is one who helps manage money and is involved with the overall success in achieving financial needs, goals, and will guide one to a better and more secure retirement. The process of Financial Planning is:
1. Determine financial situation
2. Develop financial goals
3. Identify alternative courses of action
4. Evaluate your alternatives
5. Create and implement your financial plan
6. Review and revise your plan. (1)
Financial Planning Careers
There are a number of financial service careers and two that are growing and critical in the field of finance are becoming a Financial Adviser (FA) and Certified Financial Planner (CFP®). An FA may have some of the same licenses as a CFP®; however, the CFP® will have further knowledge and skills to set the two apart, and the people who want a financial planner that they can trust and know their money is in the right hands will select the more qualified worker. Clients may refer to their wanting a CFP® who is a fiduciary; having the clients needs in front of their own. "Brokers and advisers should be bound by similar fiduciary standards," commented Arthur Levitt Jr., former SEC commissioner (2).
Many financial planners are also registered as investment advisers or hold insurance or securities licenses that allow them to buy or sell products. Ethical financial planners should send you to a more specialized financial adviser for services they cannot provide and should disclose any referrel fees they receive in the process. These advisers should also refer you to a planner if they cannot meet your financial planning needs.
One of the issues of becoming a financial planner is deciding what car...
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...f your compensation based on selling products?
o Yes
o No
Explain:
c. Do professionals and sales agents to whom you may refer me send business, fees or any other benefits to you?
o Yes
o No
Explain:
d. Do you have an affiliation with a broker/dealer?
o Yes
o No
e. Are you an owner of, or connected with, any other company whose services or products I will use?
o Yes
o No
Explain:
16. Do you provide a written client engagement agreement?
o Yes
o No
If no, why not? (5)
Resources cited
(1) Kapoor, Dlaboy, Hughes. Personal Finance, 8th Edition. Pg 5
(2) "Merrill Rule" a Bad Deal for Individual Investors. www.bloomberg.com. 11/7/06.
(3) www.sec.gov
(4) Gevlin, Kathy. "RIAs Decry Merrill Lynch' Rule." Nov. 1, 2005.
(5) Checklist for Interviewing a Financial Planner. http://www.cfp.com/learn/knowledgebase.asp?id=8
Ethical Behaviour includes obeying the law and specific regulatory rules (CII, 2013), it is necessary that Paraplanners are aware of relevant laws and regulations including: the Financial Conduct Authority’s Principles for Business and Statements of Principle for Approved Persons (CII, 2013) and the Chartered Insurance Institute Code (CII’s code) (CII, 2014) as well as the Data Protection Act 1998 (Data Protection GOV.UK, 2013), Money Laundering Regulations (Office of Fair Trading, 2009) and the Financial Conduct Authority’s six Treating Customers Fairly Outcomes (FCA, 2013). Paraplanners must act with the highest ethical standards and integrity as well as acting in the best interests of each clients (CII, 2014). It is important that paraplanners are aware of the data protection act as clients have a right to expect complete confidentiality about their personal lives such as income and identity (CII, 2013). If paraplanner has a role to play in adviser charging, then paraplanner need to be aware of the anti-money laundering rules, a paraplanner is most likely to be in charge of implementing these rules (CII, 2013). Paraplanners are very much involved in the identification procedures for client, by making sure there are copies of “acceptable” identity kept on file, therefore the paraplanner needs to have received the appropriate training on verification and identification of clients (CII, 2013)
... sure the client needs are taken care of. That leaves the remaining sales agents to be mainly concerned with the selling of the Merbatty’s products.
“FINRA’s mission is to safeguard the investing public against fraud and bad practices. We pursue that mission by writing and enforcing rules and regulations for every single brokerage firm and broker in the United States, and by examining broker-dealers for compliance with our own rules, federal securities laws and rules of the Municipal Securities Rulemaking Board”.
Summary: The book “Complete Guide to Money” is written by a financial planning expert and a radio talk show Host Dave Ramsey. Mr. Ramsey also conducts “Financial Piece University”, where he teaches people how to be smart with their money. The book that I read is actually a textbook for one of the courses of the program that Dave teaches. The author introduces himself in the book as someone who was making good money at one point of his life and later lost it all because he made some foolish choices. A valuable life lesson that he learned that in order for “The money to work for you, you need to know how the money works”. Dave Ramsey received his degree in Personal Finances and got his life, as well as finances back in order to be able to teach others about managing money. The “Complete Guide to Money” discusses the Baby Steps of Savings, the importance of having a plan and sticking with it. It prepares the reader to manage finances in a family setting or as a single individual. Going over the income, expenses and the importance of the budget, makes it easy for the reader to understand how to create a budget (the actual template at the end of the book is also very valuable). The material also covers how to get rid of debt, the meaning of credit scores and functionality of the credit reports. It goes on to discuss different types of insurances, how to negotiate a good deal, and saving for the future. Each chapter has real life examples and quotes from the actual clients of the Financial Peace University, as well as their stories about how they got their finances in order by following the simple ...
These laws allow prosecution of people who manage other people’s money, they are the Investment Advisors Act of 1940 and the Investment Company Act of 1940. These two laws monitor and regulate the activities of investment advisors and regulates and impacts the operations of hedge funds, mutual funds, private equity funds and the holding companies. Some people have speculated that the SEC is overworked and underfunded, while others think there is corruption or that the SEC is ineffective, inefficient and just missed all the “Red Flags”. While a conclusion will not be drawn here, many of these ideas can apply as the information is laid out within the time line of investigations.
The essay, “How a Financial Pro Lost His Finances,” was published by Carl Richards in 2011. It discussed the situation of the financial crisis in 2008 when the value of homes and mortgages dropped and how people lost their cash. The purpose of the article is to explain how people lost their fortunes during the financial crisis and the housing boom, some of whom were financial experts. The boom came unexpected and did not spare the investors in the real estate industry. The author highlights different cases of investors who lost their fortunes in the aftermath of the housing boom. Although the author is a financial expert, he also lost his resources like other investors who did not have financial and economic knowledge. The author is among those who lost their homes. He explains the mistakes that he learned from the loss and made him better in understanding the economic trends.
Many Personal Financial Advisors will choose later on to obtain different arrays of licenses, certifications and registrations. These allow the Advisor to sell or buy different stocks, to sell insurance, or to advise on specific cases in the financial world. These licenses and certifications can also help to build a resume, bring in more clients, and to improve the reputation of a Personal Financial Advisor. On common such certification is the Certified Financial Planner Board of Standards In addition to these, many larger firms or government regulations will require Personal Financial Advisors to register for things such as the Securities and Exchange Commision, or the North American Securities Administrators Association. There is always room to grow and improve in the field of Personal Financial Advising, and Ronald E. Osborne sums up the potential for growing in this industry by saying, “Unless you do something beyond what you’ve already mastered, you will never
Various researches can determine possible reasons as to why consumers have quite a lot of trouble making financial decisions that can be the most beneficial later in life. In the context of savings for retirement, conclusions from a test reveal that self-regulatory state, possible future orientation and more and better financial knowledge can and most likely will influence a consumers intentions for retirement investments, for example, setting up a 401K in the USA. Other studies suggest consumers who show higher amounts of future orientation are usually more likely to start up a retirement plan. Studies also show that financial knowledge and financial orientation toward ones future can help to influence the chances of one participating in a 401K plan.
* When you hire a planner they become your personal wedding bookkeeper. They go to you for approval on the budget and make sure you 're within your budget. Wedding planners usually know wedding finance101. They typically know people in the wedding industry know people in the event industry. They know prices, who or what is in your budget, who can give you what you’re looking for, what is worth it, what is not wirth it and in the long run they can save you a lot of money. In the end, all responsibilities of payments lie on you, but all responsibilities of keeping track will lie on the planner.
Financial Advisor The program of study that I would like to study is to be a financial advisor. Related programs of study may be an accounting jobs, or any job that is related to working with money. Basically the description of the program I would like to study is about telling people how to deal with their money. It is about telling each individual with investments, tax laws, and insurance decisions. This will help clients try for short-term and long-term goals on how to use their money.
When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. They record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. “The role of the financial manager has expanded beyond traditional responsibilities related to company's finances. A financial manager, through his/her understanding of the company's financial health, the current market, and the goals of the company, helps set direction and guides decision making.” Financial managers perform several different task related to finance for their organization they normally oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
The future is always uncertain. However, having a financial plan for the future can save a person a lot of grief. More importantly, it can help tremendously for that young adult who is fresh out of college, and at the beginning stages of life; for the young adult who is preparing to attain his or her Doctorate, and will be living, most likely, completely on his or her own.
One can accurately state that the role of the competent and capable financial manager is figuratively worth its weight in gold. As global markets today's financial markets increase in complexity, the tradition of learning by doing will not suffice. The financial manager today must hit the ground running with ready expertise to be used effectively as the CFO or as part of a team of financial experts within the ranks of the CFO's office. In navigating the international marketplace effectively, financial managers find themselves in a technology driven, real time information deluge which helps them to satiate the knowledge demands of investors, commercial and investment bankers, shareholders, employees, brokers, traders et al who must know particular companies, their products and the markets wherein they operate. The financial manager is charged with providing the information necessary to fulfill this relentless demand for a range of financial information that literally runs the gamut.
Retirement planning is a way to insure that you will have enough income to live comfortably when you retire. Most people will be retired 25 years or more, and careful planning is the key to successful retirement. Why would you want to have bill pressures and mortgages when all you really want to do is relax, or follow that dream of traveling the country in an RV?
A reflection of the work done to date in this course has given me much clarity on the goals that I wish to achieve in my life and the directions that I need to take to achieve them. In module three, I was able to start a financial planning process, in which I was able to determine my current financial situation concerning income, savings, living expenses, and debts through the utilization of a balance and income statement; financial objectives and personal goals sheet. I prepared a list of current asset and debt balances and amounts spent for various items providing me with a foundation for financial planning activities. In module Five, my financial process continued through the evaluation of a home affordability in which I used Maximum Mortgage