Financial Planning - What is it All About?

14/08/2011 03:45

Financial planning is often an intimidating process for most individuals and families. Thankfully, there are a variety of professionals that are able to sort out the confusion and outline a clear path to successfully managing your money. Different professionals have different sets of skills and it's important to keep a few things in mind when considering which company or individual will work best with your personal and family needs.
Seek out recommendations: Perhaps one of the best SABE501V ways to find an individual suited to your personal finance needs is to listen to what your friends and family have to say. Who do they work with? Who do they trust? Who have they had bad experiences with and would avoid in the future at all costs? A little work on initial research can go a long way to saving you time and money.
Figure out what you need: Whether you are a solo bachelor with a personal business or a growing family, requirements for financial planning vary greatly between individuals and situations. Do you want someone to manage your personal income or personal investments? Are there any special situations that affect you and would be better to have a specialized professional involved in? Do you just need something as simple as retirement advice or are you looking to finance several children through university?
Talk shop - Before trusting anyone with your hopes, goals and dreams, it is a good idea to interview them and get to know them. Do you share common interests? Is it easy for you to communicate with them? Do you feel free to ask questions and share concerns? This introductory meeting should be offered for free and without any strings attached. Other questions you will want to address include thing such as how they are paid. Do they charge flat fees, fees based on assets, or pay themselves via commission?
Finally, it is important to understand the differences between 150-420 professional designations. A Certified Public Accountant (CPA) is an educated and experienced individual that is often the best choice for situations involving taxes. This level of certification meets strict licensing requirements. A Personal Financial Specialist (P.F.S) is a CPA that has undertaken additional education in financial planning. A Certified Financial Planner (C.F.P.) is an individual that has at least three years of experience, follows a strict code of ethics, and has passed a series of stringent exams. A Chartered Financial Consultant (Ch.F.C.) is a professional involved in insurance claims that also specializes in some aspects of financial planning. A Chartered Retirement Planning Counselor (C.R.P.C.) is a special designation that allows professionals to focus on needs surrounding retirement planning.
For many individuals in a wide variety of situations, a little knowledge and information 150-610 is all that is needed to develop a sound financial plan. While most people can manage their finances on their own, there are a few special situations in which a professional will be able to offer sound advice at a reasonable price. Complicated situations can be easily cleared up by a professional with the appropriate education and experience.