Key Problems Plaguing The Financial Planning Industry

This solutions manual provides the answers to all the review questions and end-of-chapter problems in Financial Management: Principles and Practice, by Timothy Gallagher. The answers and the steps taken to obtain the answers are shown. Readers are reminded that in finance there is often more than one answer to a question or to a problem, depending on one‘s viewpoint and assumptions. One answer is

In the article, Advisors Involved in Financial Planning, authors Mendlowitz and Kess talks about how financial advisors are people oriented and want what is best for their clients. The authors prove that the difficulty of the financial advising processes is typically overlooked by others by stating, “The different kinds of financial advisors and their role in the overall financial planning process is difficult” (Pg.66). Many might think that financial advisors have an easy job, but there is more to it than telling people to save small amounts of money here and there. Advisors must go through several specific steps to figure out the exact amounts their clients must save. The author of this article talks about situations that a financial advisor might go through as well as how the advisor should

Bank of Green is a mid-tier bank that focuses primarily on consumers and small business lending. Originally, the bank provided loans through traditional bank deposits. However, in the more recent years, the bank has broadened its consumer base by offering a larger range of financial products and advice to more wealthy customers. This includes mutual funds, annuities, insurance products, and even financial planning courses. Although the bank just starts offering new financial products, the economic situation is making it hard for the bank to grow. In a recent decline in consumer confidence, investors are getting really concerned and uncertain about their investments. With a very wide range of investors, we need to clearly define a strategy that will incorporate future actions from the Federal Reserve and build back trust into the bank and its financial products. This strategy should help boost the confidence back into our investors and keep them to continue investing.

Nobody thought problem was too much regulation before this year. Financial advisors could be looking out for themselves instead of their clients. It wouldn’t be in favor of the vast majority in america. It will also be harder for the federal reserve to pursue the US interest in international negotiations because the party on the other side will not know what to make of it.

In my Career Explorations and Opportunities (CEO) class, we have just completed a financial unit. Before this unit I didn’t understand many banking terms, I wasn't aware of the difference between savings and chequing and did not know what was available to me through banks being a student. Throughout the unit I was constantly learning new things and realized how important saving is! Savings can really be a great safety net in case of emergency. Throughout this unit I have learned a lot about savings, savings skills, savings mindset, investing, types of investments and my risk appetite. In the following paragraphs I would like to tell you on what I learned throughout this unit.

iv. Assume a five-year forecast period (1998-2002) and the terminal growth of 4%. Note, however, that the market for supplemental education will likely be very competitive in the long run.

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.

When it comes to investing, millennials have a different approach than their parents. Young investors, who have been through two market crashes, have developed skepticism and mistrust towards banks and traditional advisory services. Many millennials prefer to save and forgo investing all together. For those willing to test the market, technology and social trends play a significant impact on their decision making. With millennials now outnumbering baby boomers in the U.S., many traditional financial services strive to connect with the younger generation. This comes on the heels of a noticeable upward trend in financial technology and online wealth management. Through the use of technology, robo-advisors have built a successful foundation for attracting young investors.

The Australian financial industry underwent a comprehensive overhaul in the administration of both financial based products and services introduced in July 2012 under guidelines referred to as the Future of Financial Advice Reforms, (Van Eekelen, 2014, p. 1.6). All avenues involving the dissemination of financial advice to clients have been affected by the new compulsory guidelines since July 2013. Under new guidelines, financial advisors need to maintain the highest standards of professionalism when soliciting investment advice that is readily available and contains reliable information demonstrating awareness for client diversity within the financial services industry, (Home: Future of

 The Bancassurance sector faces Human Resource Challenges and requires a change in mindset. In spite of the availability of a large talent pool, the inability to sell complex insurance products on the part of bank professionals and their reluctance to learn can be a severe setback.

Kess, Sidney and Edward Mendlowitz. "Advisors Involved in Financial Planning." CPA Journal, vol. 86, no. 9, Sept. 2016, pp. 66-69. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=bth&AN=118419527&site=ehost-live.

There are many different definitions for the profession of a financial planner. The services that financial planners offer usually vary widely. Some financial planners look at every aspect of a client’s life and show the client how he or she can spend and save money more wisely. Other financial planners show clients where and how to invest money (“Financial planners,” 2008). Four of the major specialty areas of financial planners include major life changes, personal finances, investments, and business finances (“Financial planning association,” 2012). Because there are so many types of financial planners, the best definition would be anyone who provides financial advice, investment management, or brokerage deals in exchange for money (“How

 Roth Financial ADVISORS (RFA), founded nearly 10 years ago, is a financial services firm which has a diverse base of clients,some of them were quite sophisticated,financiallyand others were just starting to invest. As the firm grew, Hugo Roth, developed a reputation for training his associates and helping themselves in the finincial industry. RFA’s reputation ,had built a large number of customers, during its short life because of Hugo Roth’s personal reputation for honesty and fair dealing .

     As and investor, you are overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful retirement nest egg, when to start saving for retirement and who to invest with. There are millions of people who realize that an investment portfolio for retirement is necessary, but do they really understand the investment instruments and the amount they must invest for tomorrow? The subject of retirement is a fascinating area but it also could be a fuzzy subject without the correct amount of knowledge, understanding and professional guidance. The number one question of concern for individuals facing retirement issues is whether or not they

“Describe the essential element to be a successful financial planner in Hong Kong and China. Explain the challenges of practicing ethical financial planning in Hong Kong and China.”