A finance planner is needed because it is not easy to plan and manage finances. Not everyone is able to manage their finances well.
A financial planner is truly beneficial for those who want to optimally manage their finance but do not have enough proficiency.
With the help from this profession, it is hoped that their financial conditions get better and secure so that they can fulfil their needs and achieve their financial goals.
In this article, we will let you know everything about financial planners, including how to choose the trusted one.
What is a Financial Planner?
Financial planners are a profession whose duty is to help companies or individuals to plan and manage their finances to meet their long-term financial goals. This profession is part of financial advisors.
They help clients to project their returns on investments and savings so that clients have insights and knowledge related to how ready and secure their financial conditions are. Financial planners who work individually are called a personal finance planner.
Personal financial planners are professional and have the ability to help clients to manage their finances by providing the right financial planning.
There are also other types of financial planners for different purposes, for example, retirement financial planner.
Shortly, the finance planner job description is involved in financial management aspects that cover various things, including taxes, insurance, investment, cash flow, to long-term financial planning like retirement and education fund.
What Does a Financial Planner Do?
So, what does a financial planner do? Financial planners help to manage their clients’ finances. They can also help to plan their clients’ business development.
How does a financial planner work? First, they will learn about their clients’ financial conditions. They will ask you about your income, lifestyle, and possible risks that you may face in the future.
Based on the information they got, financial planners will analyse in order to make financial plannings that the client can apply.
Their financial plannings include priority scales and goal settings as well as fixing any mistakes in your daily financial management.
The tasks of financial planners are quite similar to the tasks of fund managers. Both professions help clients to manage their money to distribute into several investment instruments.
But financial planners have wider responsibilities. They help clients to make an investment projection in the future.
You have to remember that financial planners do not have the right to directly manage clients’ finances.
They should only provide suggestions to their clients so that they can make the right financial decision based on the suggestions.
You can apply all these suggestions to achieve certain financial goals. If you want to pursue a financial planner career, there are requirements you have to meet. For example, educational background, training, experience, and certification.
The certification is what differentiates financial planners from financial advisors. With various qualifications they have, financial planners will have the right proficiency, analytical skills, and reliable qualities to give the right suggestions for their clients.
The Duties of Financial Planners
Below are the major duties of family financial planners:
- Helping clients to set goals, dreams, and priority scales that the clients want to achieve.
- Helping clients to be able to organize and manage their finances properly, including providing insights about fund allocations, how to adjust lifestyles to financial conditions, and how to prepare savings and investments for retirement.
- Re-monitoring all the financial plannings that have been decided to know if the clients have implemented it correctly.
- Providing solutions for clients when they have financial problems.
How to Choose the Best Financial Planner
Here are the tips that you can follow to choose the best finance planner.
- Know the Right Time to Use a Financial Planner
The right time to hire a financial planner is when you already have income, yet you cannot manage it well. You can also hire one when you already have financial goals that you want to achieve. For instance, when you want to buy a car, house, invest in property, and so on.
- Prepare a Budget to Hire a Financial Planner
When you have already decided to get help from a financial planner, then you need to prepare a budget to pay them. Each financial planner surely has a different price.
Some cost hundreds to thousands of dollars while some others are paid based on a certain percentage of the client’s income. Choose one that meets your budget.
- Choose Certified Financial Planners
Each profession must carry out their duties in accordance with the code of ethics that applies in each profession.
The code of ethics for certified financial planners is regulated by the Financial Planning Standard Board (FPSB), including integrity, objectivity, fairness, professionalism, competence, confidentiality, and diligence. You can check the official website of FPSB to see if your financial planner is certified or not.
- Figure Out Their Track Record
It is important to check the financial planner’s track record so that you will not fall for scams. See how long they have been in the industry.
This way, you will be able to figure out how experienced and professional they are. You can see on the financial planner’s official website, in which they reveal all important information related to their performance.
For example, their contact, achievement, history, and so on. You can also read clients’ reviews on the official website.
- Choose Independent Financial Planner Companies
Independent financial planner companies indicate that they are a good company. These independent companies certainly have a clear work contract from the beginning of the agreement to the end.
Generally, trusted financial planner platforms have 3 stages of cooperation contracts between financial planners and clients, which are sheets of obligations and rights of each party, troubleshooting or solution sheets when an issue happens, and contract termination sheets.
In this digital era, there is also finance planner software and finance planner online. These are practical as you do not need to meet the financial planner in person. So, do you think you need a finance planner to help you manage your finances?