Planning is a management function which involves formulation of detailed plans to achieve desired goals. Financial goals can be achieved through financial planning via process which involves:
- Identification of goals or objectives: Many individuals suffer as they are unable to manage their financial matters. People have always looked up to a financial planner to identify their financial goals and objectives.
- Formation of financial strategies to achieve them: Financial planner helps an individual to form proper investment strategies and also help in managing their expenses.
- Arrangement and creation of models and techniques required: For achieving the goals and objectives drawn, a planner has to develop different investment models and draw techniques to control expenditures.
- Implementation to monitor all the steps in proper sequence: After developing models and techniques it's very important to monitor them as there may be a situation in which a developed model or technique is not functioning the way it was predicted. In these situations it's very important to update them in order to achieve desired goals and objectives.
Do you want to be a financial planner?
Planners usually enjoy a high degree of professional autonomy which varies from firm to firm. The role appeals to those who enjoy to teach inexperienced clients who need guidance in managing their personal finance. This role also provides a chance to improve their client's life through financial stability.
Personal financial management requires keeping up-to-date records of current developments in financial products, tax laws and strategies, particularly with respect to retirement plans and estates. This role is dynamic in nature which requires the ability of sales to acquire new clients and development of new ideas to enhance the financial situation of current clients.
What does it take to be a financial planner?
Setting goals and implementing strategies to accumulate wealth, through creating personal budgets and controlling expenses is the basic role of a financial planner. For actual investment of client's funds a planner needs to have relationships with financial advisors and investment managers on a regular basis and also with mutual fund companies if required.
To become a planner a minimum bachelor's degree is expected with course work in finance, accounting and economics which is not mandatory but it can help in adding up to your educational assets. Strong analytical and quantitative skills are a must. An MBA will be an added advantage during hiring processes. A highly advisable certification certification for financial planner is Certified Financial Planner (CFP). By this certificate a planner's creditability and marketability increases for both employers and clients.
Earning scope for a financial planner
In US, financial planning is one of the fastest growing career opportunities delivering high salary ranges. As per research and statistics, planners starting salary ranges from $ 10000 to $ 30000. A professional with 5 years of experience can earn an average salary up to $ 40000 and financial planners with an experience of ten to fifteen years can earn up to $ 90000.