Getting to know the Financial Planner Profession - Today, financial planning as a career is becoming more and more well-liked. Wondering who they are and what they do? Come on, let's learn!
When you hear the term "financial planner," what comes to mind? Perhaps a person who is persistent in imparting valuable financial management advice so that others might reach a prosperous financial state comes to mind.
It must be acknowledged that, contrary to what many of us are aware of, the profession of financial planner or financial planner is not as well-known in Indonesia.
You could say that financial planners, along with the existence of international financial services corporations and independent financial planning firms, are a form of contemporary profession that has only recently become recognized to the general public.
It is impossible to separate the popularity of this profession from Indonesia's growing middle class. To be able to achieve the dream of financial wealth, the middle class group in Indonesia that benefits from economic production must overcome a number of financial obstacles. To make the most of a significant salary, appropriate administration is necessary.
However, financial literacy in Indonesia is still comparatively low, therefore it is typical to hear tales of people with sufficient incomes who were unable to achieve financial prosperity.
The ability to manage and plan one's finances in order to reach desired financial goals is what drives the growing need for the financial planning profession.
The significance of money management
Everyone needs financial planning in order to be able to attain the anticipated financial conditions. That's a happy, profitable situation. In fact, financial planning is required at some point during practically every phase of a person's life.
For instance, when you first start working (first jobber), you start to gradually wean yourself off of your parents' support. Planning your finances will be necessary in this situation so that you may attain your financial objectives, such as covering the cost of your future wedding or purchasing your first home.
When you first get married, when you become a parent, and until you retire, financial planning will become more and more important. The obstacles you face financially, for instance, increase when you become a parent.
Beginning with the responsibility to provide for children's everyday needs, prepare for the requirements of children's educational funding in the future. Not to mention the necessity of protection as a strategy to control financial risks affecting the family.
By establishing attainable financial goals, a professional financial planner's assistance might make it easier for you to manage your finances at this stage of life. You can use financial planning as a key tool to meet your current and future financial demands.
All of this is done with the intention that you may achieve financial freedom, which includes being debt-free, having a reliable income from investments, paying off house loans, and being financially secure till later.
Learn more about the financial advisor
Simply put, a financial planner is a professional who uses sound financial planning to assist people or families in managing various types of resources. A financial planner may assist you with more than just short-term financial objectives, insurance protection planning, and cash flow management. Retirement planning, investment planning, tax planning, and asset distribution planning are all parts of the financial sector, which is also the domain of financial planners.
In Indonesia, there are two categories of financial advisors. First, independent financial planners, or financial planners who do not have affiliations with or employment with specific organizations or businesses. Second, financial planners who are associated with or employed by certain organizations, such as banks, securities firms, or life insurance companies.
The Financial Planning Standards Board's competency standards must be met in order to become a financial planner (FPSB). If someone wishes to become a Certified Financial Planner, they must meet three common FPSB requirements (CFP). Next, there are Standards of Ethics, which are composed of 8 ethical principles and 37 ethical regulations. Competency Standards are attained through instruction (education) and assessments (examination). The Standards of Practice, which are mirrored in the CFP financial planning process's six phases, come last.
According to the Scottish Credit and Qualification Framework, a professional's competency criteria must encompass the following: knowledge and comprehension, practice, cognitive and numeracy abilities, communication skills, and job skills.
As a result, being a financial advisor requires more than simply financial knowledge and comprehension. Additionally, financial advisors must be proficient in both communication and math.
A financial planner's ability to accomplish his job is also constrained by a rigid work ethic. A financial planner must, among other things, prioritize the needs of his clients, refrain from giving counsel where he lacks expertise, avoid giving inaccurate advice, protect the privacy of client information, and so on. The CFP certification of a financial planner may be revoked if certain ethical standards are broken.
How a financial planner works
A financial planner typically completes the following six steps of financial planning while providing his services:
Set financial goals first. To properly complete financial planning, it is crucial to establish financial goals. The financial planner will assist you in determining your financial objectives at this point. Goals for money are also encouraged to be precise so that plans can be formed to reach them.
Next, gather pertinent information. Financial planners must also get accurate and pertinent data and information from their clients. Beginning with monthly and annual cash flow data, asset and liability ownership, customer risk profiles, and other pertinent information required so that financial planners can describe client conditions and what can be done to accomplish financial target.
At this point, a customer must be prepared to invest the time and dedication necessary to fully reveal all relevant information to financial advisers, even though doing so may be difficult and highly confidential.
Analyze the information. In order to ascertain the relationship between the customer's state and the goal to be attained, the financial planner will examine the customer data that has been gathered.
Create a strategy to reach the goal in the fourth step. At this point, the financial planner creates a practical financial plan based on the client's actual financial situation and the desired financial outcomes.
The financial plan that is created must be detailed, outlining who will do what when and with what resources. Here, financial advisors can also offer product or financial instrument recommendations that can aid clients in achieving their financial objectives.
Fifth, carry out the strategy. No matter how well your financial planning is done, if you don't put it into action, it will be for nothing. The financial planner is in charge of ensuring that the client follows the financial plan exactly.
Keep an eye on the plan. The financial planner needs to check on the customer's strategy one last time at this stage. Possibly, along with routine assessment every six months or once a year. This assessment is crucial to see whether any plans or tactics need to be altered as the client's condition changes or how successfully the financial plan has been carried out.
Financial planning will function well and accomplish its primary objective, which is to assist clients in realizing their financial goals.
Belum ada tanggapan untuk "Getting to know the Financial Planner Profession"
Posting Komentar