Apr 14, 2007
Certified Financial Planner.
A certified financial planner is a much-needed for all those who are looking to secure their financial future. There are a number of reputable governing boards that monitor the certification and the continuing education of these planners. These independent boards help make sure that each certified financial planner meets certain necessary requirements. With a certified financial planner, you not only get someone who has a established knowledge of financial planning, but one who has been trained in and is familiar with the ethical issues that surround financial planning.
For all those who wish to become a certified financial planner, one must go through extensive training and answer a test. Many certifications also require that their certified financial planners take a certain amount of continuing education credits in order to keep their credentials up to date. This generally consists of a class or two every year or so, just to keep their knowledge current and so that each certified financial planner can keep his or her skills sharp. Also, in order to become and keep certification, financial planners have to fulfill a certain set of rules and guidelines and act in good faith.
Taking on a certified financial planner has many benefits. With the services they offer you can start with confidence toward your financial goals. A certified financial planner will not only help you figure out how you are going to make payments for your home, send your kids to college, but even if you want have the luxury of retiring.
A financial planner who has been certified can also help you stay updated of all the latest news and trends and help you take advantage of the markets to maximize the returns on your investments. Every certified financial planner is trained to assist you benefit the most out of your financial situation.
Over the past couple of years, many people have become acutely aware of ethics violations among financial planners. Though many financial planners have pleaded ignorance when confronted with violations; for instance trying to get customers to buy a specific stock so that the value of their own stock would rise. While others admit that they simply didn't realize that they were doing anything wrong.
While no certification can guard completely against unethical behavior, a certified financial planner is required to go through extensive training in the law and ethics of financial planning. There are some things about financial planning that can seem morally ambiguous. Teaching a soon-to-be certified financial planner about the pitfalls can avoid problems later on. If you need a certified financial planner, finding one is as simple as asking friends and family to recommend someone. If someone close to you feels convinced and secure with the financial services they are receiving, you can feel confident in making an appointment to meet with them, so you can make your own determination.
ASIA EQUITY FUND
Public Bank’s wholly-owned subsidiary, Public Mutual announced that it has obtained the approval from the Securities Commission (SC) to increase the fund size of its recently launched PB Islamic Asia Equity Fund (PBIAEF) from 1.0 billion units to 2.0 billion units. PBIAEF’s initial 1.0 billion units (or RM250 million) were fully sold within...
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Apr 13, 2007
Certificate in Financial Planning.
The Certified Financial Planner (CFP®) designation is a certification mark for financial planners conferred by the Certified Financial Planner Board of Standards. To receive authorization to use the designation, the candidate must meet education, examination, experience and ethics requirements, and pay an ongoing certification fee
As a first step to CFP® certification, students must master[2] a list of 89 topics on integrated financial planning.[3] The topics cover major planning areas such as:
- General principles of financial planning
- Insurance planning
- Employee benefits planning
- Investment planning
- Income tax planning
- Retirement planning
- Estate planning
Beginning in 2007, students will be required to have at least a bachelor's degree in any discipline from a regionally accredited U.S. college or university in order to become eligible for initial certification.[4]
International degrees may be substituted for a U.S. undergraduate degree if they receive equivalency from a third-party organization such as the Worldwide Educational Services.The CFP® Certification Examination is a 10-hour multiple choice exam, divided into one four-hour session (Friday afternoon) and two three-hour sessions (Saturday). The exam includes three major case problems and is designed to assess the student's ability to apply his or her financial planning education to financial planning situations.[6]
Individuals holding professional designations pre-approved by the CFP Board (like PhDs in business and economics, lawyers, CLUs, ChFCs, Certified Public Accountants (CPA), Chartered Certified Accountants (ACCA), Chartered Accountants (CA), Chartered Wealth Managers (AAFM) ), and Chartered Financial Analysts (CFA) could register and sit for the exam without having to complete the education requirements by using the CFP-board's challenge status.
The CFP Board defines work experience as "the supervision, direct support, teaching or personal delivery of all or part of the personal financial planning process to a client"[7] and such experience must fall within one or more of the following six primary elements of financial planning:
- Establishing and Defining the Client Relationship
- Gathering Client Data and Goals
- Analyzing and Evaluating the Client's Financial Status
- Developing and Presenting Financial Planning Recommendations and Alternatives
- Implementing the Financial Planning Recommendations
- Monitoring the Financial Planning Recommendations
Even after the student passes the exam and meets one or more of the six primary elements of financial planning, he or she must also have completed the following:
- Three years full-time or the equivalent in the financial planning field for students who have an undergraduate degree from an accredited U.S. college or university
- Five years full-time work experience for those who do not have an undergraduate degree
- Be approved by the CFP Board during initial certification, which also involves an extensive background check.
Careers in Financial Planning.
If you are considering a business career, but have no more detailed an idea of what you want to do, then there is much to consider and countless possibilities. The word "business" covers so many diverse activities; any employment activity in which money transactions take place is almost certainly a business, or relates to a business. Medical transactions, for example, can be business to the supplier even if not to the end user, a doctor; if a private doctor, then it is business to the doctor too. Growing food is a business, transport is a business, most sport is a business, and music is often a business. The list could go on and on. If you look at every man made item within your sight, the chances are it is the product of a business, and financial transactions have taken place along the way. Business is reflected all around you.
However, deciding on what type of business it is that you want to have a career in is only one of the main parts of your decision. Another is, what aspect of that business do you want to specialise in? Do you want to be a finance specialist, or marketing, or computing? Or some other job within a business?
Nowadays, a third major decision can easily come to mind. That is, do you want a home business career or to have a separate workplace? Often related to that decision is whether or not you want to be freelance or self employed, rather than an employee?
In this article we will just offer some headings under which you need to start considering your career. But before you even go that far, it is probably worthwhile considering your career objectives and personal objectives. Also, the better you know and understand your own motivation for wanting a business career, the more likely you are to take the best direction for your future.
Deciding on What Aspect of Business to Specialize in For Your Career
Deciding on what aspects of business you want to specialize in is perhaps the best place to start. Each of the main departments of a business will be considered in more detail in separate articles. It is also important to consider your long term goal. If you want to be a business owner or chief executive, then to be effective you will need to understand all the key aspects of running a business, and how they inter-relate. For now, the broad "departments" you will find across all businesses are:
Finance
A business will have financial transactions, therefore a finance function will be essential simply for financial accounting purposes. However, to be an efficient and forward looking business, timely management information will be important too. Financial staff, if they are good, will need to relate easily to other departments within the business and understand their perspectives too. A spell in finance can be an excellent grounding for business management, whether for your own or someone else's business.
From my own experience, studying for professional management accountant status in England many years ago was what helped me to understand business much better than I would otherwise have done. With so many examinations to pass to qualify, in diverse subjects such as company and business law, computing, financial and management accounting, marketing and corporate planning, organisation and production, it provided an excellent grounding indeed.
Marketing
Alongside finance, marketing is a part of business that can inspire and produce business leaders, chief executives and successful business owners. Gaining experience in marketing is not only very interesting for those who are creative, it can become a very powerful asset in a business career. If you can get experience and finance, then you are well placed for a successful business career.
Other Business Departments
Other departments of a business to consider are purchasing, human resources (personnel department), and computing. Depending on the type of business, there may also be research, production and other departments.
Deciding on What Type of Business to Specialize in For Your Career
If your ambition is to become a business manager or owner, then the skills you acquire in the key areas of business will be applicable to any type of business. Marketing, finance and computing figure in every modern business. So, to an extent, it does not matter what the type of business is that you start in as a stepping stone to business management.
There are far too many types of business to consider listing here, and what you decide on will depend on what is available at the time, your personality, likes and dislikes, and long term prospects and salary. However, to be successful it is important to enjoy what you are doing, so choosing a type of business that you feel comfortable with is more likely to serve your career prospects well, than a business where you feel totally out of place.
Career in Financial Planning.
Before you make the leap into starting your own business, ask yourself these four questions:
• Is it really a better personal career choice?
• What do I need to know to decide?
• How can I prepare myself?
• How do I get started?
In this article, I will help you find answers to those key questions by relating to my own experience as both a corporate manager and an entrepreneur in addition to what I have learned from more than 15 years of consulting to owner-managers.
Do really want to own your own business? The advantages are attractive, but don’t forget the disadvantages that are an inevitable part of the choice.
Advantages
• Unlimited opportunity
• Freedom, independence
• Continuous challenge, variety
• Your choice of management style
• Responsible for and involved in the whole business
• If the business does well, you do well
Disadvantages
• Still limits to what you can do or control
• Many people are now dependent on you
• Requires skills and knowledge you probably do not have
• Higher risk, less secure financial future
• Cannot leave it at the office
The next step is to assess whether you are the Entrepreneurial type:
• Personal expectations and preferences – life style, work environment, rewards, compensation method?
• Personal strengths and weaknesses?
• Education, training, contact network?
• Characteristics of an entrepreneur?
• Independent, confident, persistent, action-oriented, risk taker. Passionate, leader, achiever, communicator.
• Solid foundation – family, physical, financial health?
• Additional resources available – partners, suppliers, key customers, employees?
If you are still determined to proceed, consider which business option best meets your entrepreneurial ambitions:
• Home based business, multi-level marketing
• Independent contractor – trade or professional
• Sales agent – insurance, real estate, financial services
• Franchisee – retail, fast food, business services
• Independent business – local, national, global
• Retailer, hospitality, food services, consumer services
• Manufacturer, distributor, service businesses
• Internet or technology business
• Entrepreneurial role in a corporate environment
Once those choices are made, the next question is: What is my business opportunity?
Your selection will be based on your personal knowledge, experience, and contacts:
• Opportunities that match my capabilities?
• Market need?
• Current solutions available?
• What is my proposed solution?
• Confirmed by market test, customer feedback?
• How do I make it profitable?
Now you are ready to document a Business Plan.
Why do I need a Business Plan?
• To develop and document your business concept, strategies, action plans and projected financial results as a guide for management.
• To provide necessary information for potential sources of financing.
• To attract new investors, strategic partners, or key employees.
When do I need a Business Plan?
• New Business Start-up
• Launch a new product/service
• Enter a new market
• Strategic review and performance diagnostic of an existing business
• Prepare a business for sale, merger, acquisition or succession
Business Planning Process and Checklist:
• Assess Personal Objectives
• Identify the Business Opportunity
• Define your Business Concept & Model
• Conduct sufficient Market Research
• Develop the Strategic Plan
• Define Operating Plans
• Prepare Financial Projections.
Business Plan – Recommended Table of Contents
1. Executive summary
2. Concept and business opportunity
3. Mission, Vision, Values
4. Market analysis
5. Competition
6. Strategic plan
7. Management team and Organisation Plan
8. Product and Service offering
9. Marketing and Sales plan
10. Operations plan
11. Risk analysis
12. Financial plan
13. Appendices
With all that preparation and analysis completed you will be ready to look at financing your Business Plan. There are many alternatives available, but you will probably go through these sources of financing as you proceed with your plan:
• Personal investment, cold cash
• “Sweat equity” – time and effort, not paid
• “Love money” – willing friends & family
• Bank financing – term loans, line of credit
• Angel investors – passive, active, added values
• Government funding, special loans, grants
• Venture capital – private equity
• IPO – Initial Public Offering
Capital Financial Planning.
If your company is at a point in its history and experiencing solid growth where you are considering looking for outside investors for your capital needs, then you want to know if your business will be or can be attractive to investors. If you plan to search for equity investors, you should know that they will expect a significant return on their investment (20% to 50% is not uncommon) and many times within 5 years. These investors will look carefully at the candidate company to characteristics that include, but are not limited to: a solid and proven management team; potential company growth; solid business plan; and evidence of strategic thinking and planning in a strategic plan with vision, mission core values and short term & long term goals.
And the equity investors will expect you to give up a portion of your business. So, one needs to carefully consider: Do I need equity investors as a source of capital to grow the business? If you decide to obtain equity financing, here are 5 major actions you will need to take and probably in this order (although they can be done simultaneously to some degree):
1. Build a trusted advisory team. Select an attorney, accountant/financial advisor and business coach to build that team. This advisory team will be a key resource to your business and will help you develop your business plan, guide you through this process, provide introductions to key contacts and networking for you.
2. Develop a strategic plan and a business plan. The strategic plan includes the vision and mission for your business, along with the core values or guiding principles of your business and the short & long-term goals for the business. The business plan is the action plan and will include an executive summary, your business strategy, a SWOT analysis, market research, financial projections, etc. My advice is to try to find out what the investors like to see in the business plan and customize it and tailor it to their needs.
3. Determine the value of your business. You will need t enlist a professional to assist in this and would recommend that you seek referrals from your advisory team as to who may best be prepared to do the valuation.
4. Network! Again, use your advisory team for contacts. There are many investors in the network that are not “publicly” known or advertised or that only work from referrals from trusted sources.
5. Interview and select an equity partner. Carefully plan for an interview process and use the talents of your advisory team again. Prepare a list of questions to ask each prospective investor. Explore multiple revenue sources to get the best deal. You want to find the best personal fit and the best business fit when selecting the equity partner.
You will need to “keep the faith” and not get discouraged in your pursuit, as you will encounter disappointments. My advice is to use those disappointments as a learning tool and to identify the “lessons learned” in each disappointment. Use strategic thinking and planning to re-write parts of your business plan if necessary or to develop specific aspects of your business. Always stay focused on your vision, mission and goals for your business. And always remain patient, persistent and positive in your search!
If you want to learn more about what resources are available to entrepreneurs and business owners looking for investors and other insights into this process, please contact Glenn Ebersole through his web site at www.businesscoach4u.com or by email at jgecoach@aol.com
Glenn Ebersole, Jr. is a multi-faceted professional, who is recognized as a visionary, guide and facilitator in the fields of business coaching, marketing, public relations, management, strategic planning and engineering. Glenn is the Founder and Chief Executive of two Lancaster, PA based consulting practices: The Renaissance Group, a creative marketing, public relations, strategic planning and business development consulting firm and J. G. Ebersole Associates, an independent professional engineering, marketing, and management consulting firm. He is a Certified Facilitator and serves as a business coach and a strategic planning facilitator and consultant to a diverse list of clients. Glenn is also the author of a monthly newsletter, “Glenn’s Guiding Lines – Thoughts From Your Strategic Thinking Business Coach” and has published more than 250 articles on business.
Business Plan Financial
Financial investing starts when you establish your first investment goals, and establishing your first goals should come from reviewing and deciding upon your short term and long term investment strategy. No business that is financially viable would embark upon a strategy without first doing short and long term planning and goal setting nor should you decide your future investment goals without at least some of the very same planning. Obviously you wouldn’t need to go to the lengths of a Dell or IBM but you should at least do some planning and goal setting before you launch your investment projects.
Remember that planning and goal setting comes under the umbrella of due diligence for you and your financial resources. You do not have to have a lot of money nor hold a certain type of job in order to be involved in beginning financial investing. Actual investing in whatever medium you have decided upon should only come after the planning and goal setting. The following will discuss and help you to set up your planning and goal setting in a milieu that is hopefully not pressured by buying or selling or concern with financial pressures of that nature. One final note as a cautionary one; when or if you decide to utilize the services of a Certified Financial Planner hire one that is not part of a larger insurance or mutual fund company. Get one who is independent and not under an obligation to steer you to required in-house instruments or insurance policies or basket of mutual funds. Remember that he may have an agenda that is driven by company policies and fees and not necessarily driven by concerns for you .
· Lets start by doing some preliminary planning. Listing income and expenses are a good start. First do you have an excess of income over short term (monthly) expenses. Once you are through reviewing your income and expenses, and determine that you have some excess income over expenses that are not allocated to monthly obligations you can then determine some investment goals · .Start with a longer range goal and establish some shorter steps to meet that goal. Starting with employee benefits such as a 401K Plan is a good start along your investment path. If one is available you should try and max that out. If you already have a “rainy-day” savings account you need to continue that one as well. Remember from a small account you can move up to the Money Market Funds and Certificates of Deposit in your bank. The interest may not be spectacular but the accounts are safe and always available in case of need. · For some education you can scan articles like this one to give you some ideas and guidelines There are plenty of articles available on the internet covering planning, goal setting, and financial investing. Visit the links of the good investment websites for good educational tutorials in all aspects of investing. · After defining your goals you could then take all your data to a reputable Financial Planner and work with him on developing an action plan. The best of them will review your goals with you and then suggest ways to meet your goals. Whatever he suggests you should know that all of these probably have some degree of risk and that should be explained fully to you.. There are many benefits to working with a planner not the least being his intimate knowledge of the investment market and all of the instruments that would be available to you.
Finally make sure that you review your progress at least semi-annually or more often if your planner suggests it.. At the very least you should see your planner once a year to review your goals and update them or change them if you decide that things are not going your way.. Either way, with or without a Financial Planner it makes sense to review and update your goals on an annual basis.
Business Financial Planning.
Financial Planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.
The Financial Planning activity involves the following tasks;-
- Assess the business environment
- Confirm the business vision and objectives
- Identify the types of resources needed to achieve these objectives
- Quantify the amount of resource (labor, equipment, materials)
- Calculate the total cost of each type of resource
- Summarize the costs to create a budget
- Identify any risks and issues with the budget set
Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.
Budget Financial Planning
A budget is a tool to help manage and control your family’s finances. As with many situations, having a plan of action can help you understand, focus and succeed. In this case your family’s financial well being is extremely important and budget planning is a major cornerstone of that financial well being.
It is important to understand that budget planning should not be viewed negatively; many people assume that when they are on a budget, the things they like to do and buy the most will be off limits or severely minimized. This is not the case; in fact budget planning allows you to enjoy these things guilt free, without living beyond your means.
When planning a budget it is important to sit down with your spouse and talk about income and expenses that you and your family have. Budgeting should always start as a rough outline, just to get a broad idea of what your expenses are, what are your largest expenses and how effective your monthly or yearly income or investments are at affording these expenses. You should never plan your budget and set it in stone. Just as your income and expenses change, so should your budget change. Your budget is a tool that should help you live within your means and to allow you to free up money for the things that you want to do, instead of freely spending it on the things that are not necessary or impractical.
When budget planning, most families realize that they have been spending a significant amount of money on items that they have little use for, which then can be focused on things that will ultimately make them happier. In this way, budget planning can have an extremely positive affect. Budget planning is an extremely important factor in your family’s financial health; by planning your budget wisely, you can attain the things that mean the most to you and your family.
Best Financial Planning.
The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization.
Companies plan their various and multilevel activities. A company's strategic planning is a row of elements that describe how the company uses its resources concerning its inner and outer environments to reach its objectives. Resources contain financial, human, facilities and technology. Resources are limited that is why they are prioritized at GE to support the company's goals. The positioning and usage of resources includes all elements of the company and develops into strategic decisions of the company.
GE strategic planning objective is to increase its economies and at the same time to apply its advantages concerning company’s clients. There are three basic steps of gaining strategic planning within GE: The formulating of a major business strategy. This is the basis of efforts to build a serious competitive advantage.
The adaptation of the major business strategy to all the markets where the company’s products are presented.
The globalization of the major business strategy. It means the company has to integrate the strategy in all the places of business operation.
In order to implement all these factors of strategic planning into practice one should make the SWOT analysis. SWOT analysis is a set of major factors - Company’s Strengths, Weaknesses, Opportunities and Threats - for formulating strategic alternatives. The GE SWOT analysis shows its strengths, weaknesses, opportunities and threats in order to use this information in the Strategic Planning. When the SWOT analysis is done, it is used as the foundation of objective setting, strategy setting and usage. The SWOT analysis is concentrated upon the most important factors and it is useful in a difficult strategic situation. The strengths are analyzed to reach opportunities and to avoid threats. The search of weaknesses is of importance as it allows the manager to minimize them.
At the beginning of the 1980s General Electric, the big USA electronics company determined a goal of increasing its market share. This aim was achieved by acquiring Radio Corporation of America and advanced satellites divisions and disposing of its consumer electronics divisions. This was General Electric’s effective strategic planning that helped to increase the annual income. These are the GE strengths, weaknesses, opportunities, and threats that still form the basis of strategic planning. The developed GE culture is its strength as well as human resources. The competition is great that is why the competitive advantage is the strength too. Technology is an essential part of any business and its usage presents great opportunities to GE Company.
GE developed a vision, mission, and general objectives of the company to develop a strategic plan. Vision is the posibility of the manager to organize people together with a common idea. The mission is a broad notion of the company's vision. GE’s mission consists of severs factors: history, present preferences, the market environment, resources and competencies. The mission gives the company a reason for existence. A good strategic planning process means sharing the "vision" of the company with the employees and creation of a strong corporal culture. When GE goals are defined, strategies are developed to help in achieving its purposes. The GE culture is shapes under the strategic plan. The GE’s information systems are created to successfully use the strengths of human and other resources within the GE.
GE Strategic planning is the process of developing and analyzing the company's mission, near and long term goals, strategies and resources. The strategic planning process passes at the business and product level. It starts with the analysis of the GE's present strategic planning and goes on with the making up future perspectives. Strategic planning defines the methods of meeting the company’s future challenges and opportunities.
The strategic planning is necessary as it helps to create good decisions and affect the future of GE Company. It becomes obvious that effective strategic planning is a constant environmental analysis for applying the changes in the environment and turning them into the opportunities. It allows GE Company to manage or avoid undesirable environment effects.
Using the GE Strategic planning the near and long term goals are developed. GE strategy is a set of actions developed to gain long-term goals. Goals focus on vital changes. Two, three, or five years passes till the strategy is achieved. In general, GE has long-term goals for such factors as return on investment, earnings per share, or size. Purposes elaborate on the mission statement and constitute a specific set of policy, programmatic, or management objectives for the programs and operations covered in the strategic plan.
Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. Operational plans support tactical plans and are the tools for executing daily, weekly, and monthly activities. They include policies, procedures, methods, and rules. GE has essentially grown in size and benefits since 1980’s. GE centralized financial management and strategic planning control, and practiced strategic planning management.
Best Financial Planner.
How do you go about finding the best financial planner for your money? Well, like many people, you are probably very skittish when it comes to trusting just anyone with your money and for good reason. However, the skittishness could work to your advantage, when it comes to finding the best financial planner.
In these times, any person walking down the street can proclaim themselves a financial planner, the key is to knowing the good from the bad. Many people have found the market for financial planners is strong because the demand grows with each passing day for financial product advice as people are readying themselves for retirement and other issues become more complex.
Attorneys, accountants, insurance agents, and brokers are all becoming financial planners in addition to their current titles; this may not mean they have your best interests at heart either. This may come at a surprise to you; however, as unfortunate as it is, it is a reality. It is extremely important that you conduct full research to avoid running into an instance where your money has suddenly disappeared without an explanation.
It is also important that you keep in mind, just because a person claims to be a financial planner, does not mean that they have guidelines, or processes that they follow. Therefore, the first thing you must do is find potential financial planners. This can be done easily by searching online, using your favorite search engine, and locating financial planners organizations or you could also talk to you friends, family members, or colleagues and find out whom they recommend. It is important that you trust the judgment of any person you are seeking advice from, when it comes to finding the best financial planner.
After you have gathered a list of prospective financial planners, it is time to start contacting them. Telephone contact should be the first step, through this contact you can ask a variety of questions and eliminate those that do not meet your needs. Some things you should paying attention to during these telephone calls include if they sound to rushed, you will want to dismiss them as potentials. Furthermore, if their asset minimums are simply too much for you, you should dismiss them as well.
Personal and in person meetings are required before you decide on the best financial planner. You will not simply want to make a decision based on telephone conversations and contact. Meeting with the financial planner yourself is the only way to fully determine if you feel good about that specific person. It is suggested that you have at least three meetings before making a decision.
During the meetings, in order to help you determine who the best financial planner is ask the following questions. How many years have you been a financial planner? Do you have any specialty areas? Educational Funding? Estate Planning? You should also be asking what their typical client has in financial and assets needs. This question will help you determine if they are the best financial planner for you.
Become a Certified Financial Planner.
To become a financial planner, you first must know what their job profile is. Financial planners help in determining the financial resources required to meet the company’s operating program. They also help in forecasting the extent to which these requirements will be met by the internal generation of funds, and the extent to which they will be met from external sources. It’s the job of financial planners to develop the best plans to obtain the required external funds. They also help in establishing and maintaining a system of financial control governing the allocation and use of funds. Financial planners formulate programs to provide the most effective cost-volume-profit relationship. It’s the job of financial planners to analyze the financial results of operations, report the facts to the top management and make recommendations on future operations of the firm.
To do all these functions efficiently, financial planners first need to establish the financial objectives of the enterprise. Both long-term and short-term objectives should be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration and distribution of business funds. The next step financial planners have to do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives decide about the control system, develop standards of performance and evaluate the performance. Lastly, they have to forecast the future. In order to take proper action to achieve the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.
While doing these activities, financial planners must take into perspective the cost of finance and nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive cash flow can be selected.
Association of Financial Planners.
Choosing a financial planner is a very important decision. Who will you trust to handle your life savings and plan your financial future? The fact that someone claims to be a financial planner does not qualify him or her to handle your money. They must have the proper certification, experience and knowledge.
The Four Cs of choosing a financial planner
1. Credentials
·What certifications, college /university degrees and experience does he/she have?
·How many clients or how much money does he/she handle?
·Make sure the planner is registered with the Investment Dealers Association in your area or Certified by a Government body
2.Compensation
·How are you compensated? Flat fees, salary or commission? (Beware of those who earn big commissions for placing you in high risk funds)
·Are there any hidden underwriting fees with my investment fund?
·Will you explain all the cost involved with each investment?
·What is the cost of liquidating or canceling my account with your firm? (Good to know, if you decide to switch funds or investment companies)
3.Characteristics
·What is your investment philosophy?
·Do you focus on domestic markets, foreign market or both? (Answer should be both)
·What is your specialty? Your strongest area? (Global portfolio management, no load mutual funds, stocks, bonds etc)
·How do you view risk and how does your philosophy fit my risk tolerance?
4.Customer service
·What services does your firm offer?
·How accessible will you (the agent) be?
·Will you review the funds last 5 to 10year performance in the prospectus?
·What has been your year-to-year investment performance?
·What was you worst year? Best year? And why? (Look for defensiveness or humility after raising this question, it reveals personality type)
·Do you offer financial planning, money management or both?
In conclusion, a financial planner works for you, and should be compatible with your personality, risk tolerance and financial goals. Make sure that your hard earn money is in good hands. Interview potential planners, ask for references and call at least 3 of those references.
Alexander Hamilton's Financial plan.
Alexander Hamilton’s plan implemented ideas of public credit, a national bank, and tariffs and manufactures to promote a fully republican economic system that was directly related to the federal government.
Hamilton’s Report supported ideas of war debt assumption, redemption of Confederate securities at face value, and funding of new national securities as a permanent national debt, in order to enhance the revenue and fiscal system of the national government, creating a large body to which many wealthy citizens would belong and support, bringing about its prosperity. Jeffersonians thought that, because the public credit system was focused on the wealthy class, it would give them power over the agricultural, lower class which made up the majority of the population, thereby denying democratic ideals.
Hamilton believed that a national bank would make loans, handle government funds, issue financial notes, provide national currency, and overall considerably help the national government to accurately and efficiently govern financially. Jeffersonians believed that creating such a power, if not now, then soon enough would cause the elastic clause to be stretched too far, causing all the state divisions to be subsumed under a single, powerful national government.
Additionally, Hamilton supported the manufacturing economy because he believed it to be more efficient and fruitful for the nation itself. Jefferson thought it was improper and cruel to center such industrial activity in factories and such, and encouraged the use of technology in open spaces (such as farming fields) that the agricultural family could make use of, for the addition of such a labor force would be beneficial in his mind.
Apr 2, 2007
What Is Financial Planning?
Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement.
The financial planning process consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
The financial planning process consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
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