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 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
 TDM Consulting INTRODUCTION: THE PRACTICE OF
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TDM Consulting INTRODUCTION: THE PRACTICE OF

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  • 1. INTRODUCTION: THE PRACTICE OF PERSONAL FINANCIAL PLANNING
  • 2. THE NEED FOR FINANCIAL PLANNING
    • Demographics
    • The “pig through the snake” phenomenon
    • The advent of the “super middle class”
    • Increasing average lifespan and the aging of the population
    • The “sandwich” generation
  • 3. THE NEED FOR FINANCIAL PLANNING
    • Economic Complexity
    • The explosion in financial instruments
    • Increased financial market volatility and unpredictability
    • The changing nature of health care - HMOs, PPOs, POSs
    • Changes in retirement funding - DBs,DCs, SSI, and “DIY”
    • Changing retirement ages
    • Changing tax laws
    • Changing pension plans
    • Results: Changing plans and no plans
  • 4. EBRI SURVEY: RETIREMENT PLANS AND REALITY
  • 5. THE NEED FOR FINANCIAL PLANNING
    • Societal Changes
    • Labor market changes
    • Downsizing, rightsizing, and the disappearance of long-term employment
    • Reduced employee benefits, greater uncertainty
    • Changing attitudes toward post-retirement lifestyle
    • Changing attitudes toward borrowing
    • The trend toward specialization
  • 6. CHANGING RETIREMENT PLANS BOOMERS’ POST-RETIREMENT PLANS 23 percent 35 percent 16 percent 22 percent Source:1998 AARP/Roper Starch Worldwide, Inc. study
  • 7. THE TREND TOWARD SPECIALIZATION: WHAT IS FINANCIAL PLANNING?
    • “ We could all do our own plumbing - but should we?”
    • “ Generally Accepted” Definitions of Financial Planning
    • Legal Definitions of Financial Planning
    • Professional Designations
    • The Public’s View
  • 8. “ GENERALLY ACCEPTED” DEFINITIONS OF FINANCIAL PLANNING
    • “ Financial planning is the organization of an individual’s financial and personal data for the purpose of developing a strategic plan to constructively manage income, assets, and liabilities to meet near- and long-term goals and objectives.”
    • Source: Position paper - Institute of Certified Financial Planners
    • “ Financial planning is the process of determining whether and how an individual can meet his or her goals through proper management of financial sources. [This] . . . demands a willingness to stay abreast of new financial strategies and instruments. The other side of the process requires that all the planner’s knowledge of financial strategies and instruments be brought to the surface of the client’s goals.”
    • Source: Financial Planning: A Career Profile, Int’l. Board of Standards and Practices for Certified Financial Planners, Inc.
  • 9. LEGAL DEFINITIONS OF PERSONAL FINANCIAL PLANNING: THE SEC’S VIEW
    • “ A financial planner is a person who does business in the following manner:
    • Provides advisory service regarding the management of financial resources.
    • Provides analysis of individual client needs.
    • Prepares a financial program based on the client’s financial circumstances and objectives, including:
    • -Present and anticipated assets and liabilities
    • -Insurance
    • -Savings
    • -Investments
    • -Retirement and employee benefits
    • Additionally, most planners:
    • Provide special recommendations for client action.
    • Assist the client in implementing recommendations.
    • Periodically review the program and recommends revisions.”
    • Source: SEC Release 1092

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