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
The Public’s View
“ 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.
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
-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.”