Financial planning is the urgency of present word. Financial Planning states that how a person should invest and where a person should invest to reap maximum profit out of his investment. Ongoing with the demand of financial planning, the concept of financial planner came into existence. A Financial planner is somebody who instructs you when to invest and where to invest. His suggestions in investment may vary from Shares, bonds, mutual funds, stocks, Property or even more. Moreover a financial planner will help you completely build your portfolio, to help you file your income tax etc.
In other words a financial planner is a professional who helps individual to manage with financial issues through planning. In carrying out the planning process he keeps in mind the financial planning process to create a best suited strategy for a specific client so that objectives for which an individual financial planning can be met.
Financial planners also need to pursue some certifications and follow some benchmarks to prove that they are competent and trustworthy. Those who suffice to the standards of certification process and ethical standards are awarded with a professional financial planning designation. Certified Financial Planner is one of the most renowned certifications of financial planning area because of its standards and global presence. The Certified Financial Planner was introduced in 1970's to meet the need of individuals
The CFP is intended at providing the certifying candidate the following
Education:-A certificant generally needs to follow the below mentioned steps:-
- Establishing and maintaining Client relationship.
- Gathering data
- In depth knowledge of client's Finance
- Developing and presenting recommendations
- Plan Implementation and Monitoring
Certification Examination Process: This may vary for different Institutions. Generally six exams are held based on six modules.
Experience: Different Institutions require different level of experience in aspiring candidate
Generally the following modules are covered in a Certified Financial Planner course
- Financial Planning: This requires in depth understanding of clients requirement and his finances. This also requires general principles such as budgeting, client relationship, property issues and other legal issues.
- Insurance Planning: This requires candidate to understand the varied insurance products and its legal complications. Along with this application of this to varied client is also required.
- Risk Management: Client relies on their financial planners to give them a detailed knowledge and guidance about the risks involved. This includes varied risks such as risk of death, disability, property lose, legal complications and many others
- Employee Benefits: This involves candidate to understand employee benefits such as Group insurance , Medicare and other Employee benefit schemes
- Retirement Planning: This involves planning related to retirement benefits. Generally this planning is done based on the age of individual and monetary benefits the individual require at the time of retirement.
- Investment Planning: This comprises planning related to whether an individual should invest in Equity, shares, Bonds, mutual funds, Property etc. This also emphasizes whether the investment should be long term or short term
- Tax Planning: This involves Income Tax planning in the best possible way so as to reduce the effect of taxation on individual's wealth and help him manage his taxes
- Financial Plan construction: This involves understanding of all above stated areas so that candidate can come out with a well suited financial plan for varied clients.
Following are some of the advantages of doing a Certified Financial Planning Course
- The Credibility and Expertise of a certified candidate is automatically communicated
- It is because of the certification that a certified candidate gets much more and improved opportunities with large financial firms. Financial planning is a specific division where the certified Financial planner is required
- A certified Financial planner is well versed in its approach thus he becomes a Problem solver which he easily solves through sequential step processing.
- After attaining the certification, because of in depth knowledge of required concepts your clients are now more satisfied. This also gets reflected in your increased earnings and improved personal status.
- While different individuals may bid for the best financial planners around but the certified candidate knows that he has attained the best has more knowledge as compared to his other counterparts