Lecture Overhead Set 2

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Lecture Overhead Set 2

  1. 1. THE PROCESS OF FINANCIAL PLANNING I: THE PLANNER’S ROLE
  2. 2. FINANCIAL PLANNING: PROFESSIONAL DESIGNATIONS <ul><li>CFP (Certified Financial Planner) </li></ul><ul><li>CPA/PFS (CPA/Personal Financial Specialist) </li></ul><ul><li>ChFC (Chartered Financial Consultant) </li></ul>
  3. 3. THE AREAS OF PERSONAL FINANCIAL PLANNING <ul><li>Financial Assessment </li></ul><ul><li>Investment Planning/Portfolio Management </li></ul><ul><li>Tax Planning </li></ul><ul><li>Risk Management/Insurance Portfolio </li></ul><ul><li>Retirement Planning & Employee Benefits </li></ul><ul><li>Estate Planning </li></ul>
  4. 4. THE FINANCIAL PLANNING PROCESS Client Financial Goals Comprehensive Financial Plan Financial Position Analysis Risk Manage-ment Investment Planning RetirementPlanning Tax Planning Estate Planning
  5. 5. THE ROLE OF THE FINANCIAL PLANNER CPA/Tax Preparer Broker Banker Attorney Employer Client and Planner Insurance Agent
  6. 6. FINANCIAL PLANNING HELPS THE CLIENT FOCUS ON FUNDAMENTAL QUESTIONS <ul><li>What does the client want to achieve? </li></ul><ul><li>When does s/he want to achieve it? </li></ul><ul><li>What resources are/will be available? </li></ul><ul><li>What is the client’s level of risk tolerance ? </li></ul><ul><li>What other factors should be considered in the development of the financial plan? </li></ul>
  7. 7. CLIENT FACTORS <ul><li>What Other Factors Merit Consideration in the Planning Process? </li></ul>
  8. 8. THE FINANCIAL PLANNING PROCESS: CFP BOARD PRACTICE STANDARDS 1. Establish and define planner-client relationship 2. Gather client data; develop financial goals 3. Prepare fin’l stmts., analyze and evaluate client fin’l status 4. Develop and present fin’l planning recommendations 5. Implement fin’l planning recommendations 6. Monitor fin’l planning recommendations
  9. 9. ELEMENTS OF A COMPREHENSIVE FINANCIAL PLAN <ul><li>Statement of Client Goals </li></ul><ul><li>Executive Summary </li></ul><ul><li>Plan Body - Analysis and Commentary </li></ul><ul><li>Key Recommendations </li></ul><ul><li>Implementation Plan </li></ul><ul><li>Summary and Conclusions </li></ul>
  10. 10. SIX RULES FOR FINANCIAL PLANNERS <ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul><ul><li>4. </li></ul><ul><li>5. </li></ul><ul><li>6. </li></ul>

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