tailieunhanh - Lecture Personal financial planning – Web chapter B: Career basics

This chapter’s objectives are to: Evaluate financial planning as a business, construct a business plan for a PFP business, define the major types of planner compensation, appreciate the importance of marketing and the ways of doing it, classify common profiles for planning as a career. | Lecture Personal financial planning Web chapter B Career basics Web Chapter B Career Basics 1 Chapter Goals Evaluate financial planning as a business. Construct a business plan for a PFP business. Define the major types of planner compensation. Appreciate the importance of marketing and the ways of doing it. Classify common profiles for planning as a career. 2 The Business Plan An initial business plan is an outline or more often a detailed description of how you expect to establish and grow your firm over the next one to five years. In a sense it is the financial planner s financial plan for the business. It provides the structure and mandates the thinking process and approach necessary to be successful in a new or existing financial planning activity. We next will discuss the various steps in the business plan individually. 3 Obtain Proper Education and Experience Planners should Have an undergraduate degree. Complete a specialization in personal financial planning either as part of your degree program or through an adult education program. Have practical professional experience in planning. This can be done by working for someone else or beginning on your own perhaps by performing your first plan at no charge. Have a planning designation. The CFP certification is the most prominent among planners. 4 Obtain Proper Education and Experience cont. The CFP certification requires a college degree a minimum of a five-course 15-credit curriculum passing a comprehensive exam and three years of related business experience. Other designations include The Chartered Financial Consultant ChFC which is often for people with insurance backgrounds. The Personal Financial Specials PFS for CPA financial planners. The Chartered Financial Analyst CFA for investment specialists. 5 Secure the Services of Advisors Every business or career can benefit from advisors. In PFP advisors include An attorney perhaps one that specializes in small businesses. The attorney or attorneys will .