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
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Broker/Dealer
Broker/dealer is a term used to describe an individual or company that is licensed to buy and sell investment products for clients. Some large companies sell securities they own (dealers), while others only buy and sell secuirities for investors (broker).
Chartered Financial Analyst® (CFA®)
CFAs are securities analysts, money managers and investment advisers who have completed the CFA program. CFA® chartered holders are required to commit to high ethical standards just like a CFP®.
Chartered Financial Consultant (ChFC)
ChFCs are financial professionals who have passed The American College's eight course education program, met experience requirements and agreed to the code of ethics.
Fee-Based Financial Adviser
An Adviser who is compensated both by fees paid by the client and commissions that are contingent on the purchase or sale of financial products.
Fee-Only Financial Adviser
An adviser who is compensated solely by the client, with neither the adviser nor any related party receiving compensation that is contingent on the purchase or sale of financial products.
Financial (Securities) Analyst
These are professionals usually employed by investment institutions to conduct research and analyze the value of securities and financial condition of a company, group of companies or industry sector. Based on their analysis, analysts with make investment recommendation to buy, sell or hold a given stock.
Investment Adviser
Investment advisers
The role of the wealth manager is not to simply sell a financial product to a prospect. Instead, a wealth manager’s first concern is developing a comprehensive understanding of the client, a client-centric approach to providing financial solutions. Next the wealth manager must match the right solutions to the client’s needs and desires and ensure he or she receives an exceptional service experience. After that, product and service sales opportunities will naturally follow. Making the transition is clearly a trade-off between short-term results and long-term success. Financial security through goals-based wealth management. As a wealth manager with Merrill Lynch,
List and describe the three career opportunities in the field of finance. Finance has three main career paths: financial management, financial markets and institutions, and investments. Financial management involves managing the finances of a business. Financial managers—people who manage a business firm's finances—perform a number of tasks. They analyze and forecast a firm's finances; assess risk, evaluate investment opportunities, decide when and where to find money sources and how much money to raise, and decide how much money to return to the firm's investors. Bankers, stockbrokers, and others who work in financial markets and institutions focus on the flow of money through financial institutions and the markets in which financial assets are exchanged. They track the impact of interest rates on the flow of that money. People who work in the field of investments locate, select, and manage income-producing assets. For instance, security analysts and mutual fund managers both operate in the investment field.
Investors: These are people who invest money into an organisation to obtain a particular number of shares and earn dividends relative to their proportion of investment.
Just Graduate’s financial planner, Just Graduated has a job and makes $32, 000 after tax per year and he has a $25, 000 school loan. Student debt is to be paid off and monthly combined expenses of $2, 000 every month, with rent. Just Graduated has no credit card and is look for help to help him manage his financial expenses.
An insured dividend paying account that may be opened with a minimum amount and may be added to or withdrawn from as the member so chooses.
Becoming a financial advisor will be a challenge but not impossible because of my demanding high school schedule that I have maintain with a cumulative GPA of 3.7. I maintained that GPA by studying hard, managing my social, academic, and sports life all together. Numerous AP and honors classes has shaped my ability to work under pressure and survive rigorous curriculum. Being certified in five programs have demonstrated a range in my academic abilities. I also had the opportunity to gain some insight in the business field because of a summer intern. I learned computer application, such as QuickBooks and also acquired the skills to conduct payroll. Learning how to work in QuickBooks and conducting payroll has open my perspective of the jobs of a financial
In financial analysis, analysts use the financial data to monitor and evaluate a firm’s financial position, to plan the future financing, and to reallocate the size of the company and its rate of growth. Financial analysis involves examination of the historical data to achieve the information about the current and future the financial health of the company. They may work in the forecasting and profit analysis. They, like the accountants, prepare the reports. They prepare budget report, work in cost and general account. They analyze the changes in production and service to determine the effects on costs. They work on the graphs. They use statistic to compare the standard costs to the actual costs. They also study the significances of alternative ways of investing money in a particular field. They usually work for the large financial institutions. Particularly, they work
Servicing as financial advisors, banks help customers manage their money by recommending different opportunities and serving as a securities intermediary.
An MSc in finance will help to enhance my knowledge of fundamental finance theories and models; understanding the complex financial problems; and also analyze and evaluate investment decisions.
Investment Banker: An intermediary who arranges the sale of stock and bonds to raise capital for corporations. Also involved in arranging mergers and acquisitions of companies.
I am interested in being a Financial Advisor/Planner for a variety of reasons. The first reason is that ever since I was young, I always knew that one day I wanted to work myself. It seems appealing to have the time and effort that I put forth in a job directly benefitting me. This particular career path would allow me to one day essentially be running my own business, which is my end goal. Another reason I am interested in this position is because the idea of helping people is really rewarding to me. I want to be able to help people reach their financial goals, whether it’s trying to retire by 65 or trying to save up to send their child to college.
Both Blunt and Mathas knew this would be an uphill battle, however. Historically, investment advisors preferred to actively manage their clients’ funds, whereas an immediate annuity represented an irrevocable one-time transaction. In addition, most advisors favored a fee-based business model rather than one in which they would receive only a one-time commission. Complicating matters, research suggested that consumers were almost completely unaware of the existence or benefits of immediate annuities. Yet Mathas had faced doubts about this product before, and he genuinely believed that, in the ever-changing landscape of retirement planning, immediate annuities offered great benefits for those in or approaching their retirement years.
Financial Planning Financial planning is an appraisal of those financial aspects that may or are likely too occur in future but need immediate decision making. It involves setting financial objectives in terms of profits, sales or acquistion of assets along with financial foorecasting for the organisation. This includes estimation in the areas of: Ø
It is a trust which helps investors to achieve their investment goals through the way of funds.
High ethical standards are imperative in preserving the public’s faith in economic markets and in the investments profession as a whole. CFA Institute members must follow the Code and Standards. If members do not abide by the code, sanctions may be imposed. Sanctions consist of cancelation of membership to the CFA institute, withdrawal of suitable candidacy in the CFA program, and lastly prohibition of use of the CFA (Chartered financial analyst) designation.