1 / 12

Financial Planners – What do they do?

Financial Planners – What do they do?. Financial Planning Mr. Yates. What do they do?. A financial planner is like having a personal coach for your money. 

pomona
Download Presentation

Financial Planners – What do they do?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Financial Planners – What do they do? Financial Planning Mr. Yates

  2. What do they do? • A financial planner is like having a personal coach for your money.  • Their aim is to help you protect and get more out of the money you have, so you can have more of the things you want – today and in the future.

  3. Financial Planner • After finding out who you are, your current circumstances and where you want to be, • your financial planner will help you make informed decisions about how to make the most of your money, • investing and protecting it to your advantage and using financial products that suit your needs.

  4. With the background  Plan • summarize the client’s financial position • list their goals • explain how they will reach those goals • show how carefully chosen investments mesh together as working parts of an overall strategy • disclose and explain any risks and how they can be overcome • state all the costs • reveal the commissions the financial planner might receive from the investments they recommend. 

  5. The First Meeting… • At the first meeting, a financial planner will ask the client about themselves – about where they are now, about their expectations, about how they would like to live their life. • Then they will conduct something called "fact finding" - they will ask about their personal circumstances and help them to determine your attitude towards risk. • Your attitude to risk means whether they are conservative in the way they invest, aggressive or somewhere in between.

  6. Financial Planner Needs • Don’t be surprised when a financial planner asks for detailed personal information; they need it to put together a financial plan. Hence, they will ask things like a client’s: • age • current personal income • family income • future income (inheritances included) • day-to-day expenses • your family circumstances (number and health of dependants, dependants from previous relationships etc) • future expenses • assets and liabilities • tax paid and tax owed • insurance situation • current investments • state of health.

  7. More… • A financial planner will also need to have considered the client’s goals and current financial position. Financial planner will ask you things like: • when they want to retire • how they want to educate their children • whether a second home, like a vacation home, is important • do they have dependents they need to provide for if they are unable to work or if the unforseen happens • whether they have an up-to-date will • whether they are expecting any large expenses.

  8. How do they get paid? • Many advisers get paid through commissions on investments they recommend. • (The law allows this, as long as the client knows about it.) • Only a few advisers charge simply by the hour, but the client may be able to negotiate this arrangement. • Most charge a combination of fees and commissions.

  9. Financial Planner Fees • As a rough guide, if a client invested about $100,000, they should expect to pay from $1,500 to $2,500 (or from 1.5% to 2.5% commission, • or $15 to $25 for every $1,000 you invest) for the normal range of products, assuming their finances are reasonably straightforward. • Fees for service can range from about $100 per hour to $400 per hour. • Around $200 an hour is common if they are paying only for the time spent and no commissions.

  10. Questions asked prior of FP’s • They include questions like: • Is the planner licensed or do they represent a licensee? • Do they have experience in advising clients with similar needs? • What products can they advise on (ask to see their Approved Products and Services list)? • What qualifications do they have? • What processes do they follow? • What are their professional development plans? • What are their fees?

  11. How they become FP’s • In addition to completing courses that cover the financial planning topics required for CFP® certification, a bachelor's degree (or higher), in any discipline, from a regionally-accredited* U.S. college or university** is required to attain CFP® certification. • The bachelor's degree requirement is a condition of initial certification; it is not a requirement to be eligible to take the CFP® Certification Examination. • After you pass the CFP® Certification Examination, you will be required to provide evidence (photocopy of degree) that you hold a qualified bachelor’s degree or higher degree.

  12. In addition… • There is a focus of study for financial planners in: • General principles of financial planning • Insurance planning and risk management • Employee benefits planning • Investment planning • Income tax planning • Retirement planning • Estate planning

More Related