Certified financial planner is a professional who uses the financial planning process to help individuals work out a plan to meet their life goals. Basically they are known with a qualification such as Certified Financial Planner (CFP) or Chartered Financial Consultants (ChFC).
In financial planning, there are 3 categories. Single purpose, multi-purpose and comprehensive financial planning. For single purpose financial planning, they are basically the person who sell insurance and unit trust / mutual fund. The current development shows there also a person who will help you particularly in estate planning.
The independent CFPs and ChFCs usually can show you more holistic plan because they are not tied-agents who are attached with any financial institutions.
It is very important to seek for a certified financial planner because if you have any problems with your agent or financial planner, you can always seek a recourse from central bank or securities exchange commission, particularly in Malaysia, Bank Negara Malaysia and Securities Commission.
You should find a financial planner for a specific advice on your financial matter especially when you are in these situations:
1. In need of expertise in certain areas of your finances for example how to evaluate the risk level of your financial portfolio, retirement plan and so on;
2. You want to get a professional opinion about the financial plan that you have developed for yourself;
3. You don’t have time to do your own financial planning;
4. You have an immediate need or face an unexpected life event such as a birth, inheritance or major illness;
5. You feel that a professional adviser can help you improve you current financial portfolio; or
6. You know that you have to improve your financial position but don’t know where to start.
Knowledge is Power - Francis Bacon
3 Comments
Thanks for a very informative post.
I’d just like to add that our customers have had great success by applying the snow-ball method to any bad debt.
The idea is simply, yet really effective…
You start of by making a list of all your debts with the lowest amount owed on top. You then put ALL surplus cash you have available into paying back the smallest debt first.
Once this has been settled in full you then move onto the next debt in the list, and so on until all your debts have been settled in full.
It’s called the snow-ball method because once the smallest debt has been paid, any extra money you have left gets offset against the next balance. The effect is like just like a snow-ball.
Really simple and yet anyone in debt can easily apply it.
Regards
Rob
This post is quite informative, with this recession and all, point 6 is really needed. cheers. DC
I agree as well. Thanks Rob, I have researched about getting financial planning… and I’d just like to add my tips on choosing a financial planner. We may already know that saving and investing can be much more effective when you have a solid financial plan. But should you put a plan together yourself? Here are some of my tips to figure it out…
* Did you do your homework? — There are plenty of helpful calculators and articles on the Internet, and in books and magazines. You can even buy software to help you put a financial plan together yourself. But, if you don’t have the time or just want to find out if you’re headed in the right direction, maybe it’s time to turn to a pro.
* CPA, CFP or RFC? — Now that’s some alphabet soup. These stand for Certified Public Accountant, Certified Financial Planner and Registered Financial Consultant. They are all different types of financial service professionals that are offered by a variety of sources including banks and insurance companies. Do your research ahead of time and figure out which type fits your needs. Some of the best planners often combine knowledge about accounting, investing, tax and insurance.
* Take it personally — Ask friends and family members if they use a financial planner. Then, call the people they’ve recommended. Take the time to find out what they offer and how they could help you meet your goals. That way you’re able to choose someone who’s a good match for your needs and personality.
* Money talks — Get clear on fees and commissions up front — by which method (or combination of methods) do they bill? Do they have hourly rates or charge a flat fee for an entire plan?
* Check them out — Make sure they’re licensed - ask to see their Form ADV. If the planner is a lawyer or a CPA, check the state bar association or accountancy board. Also call the Better Business Bureau to see if any complaints have been filed.
All of this may seem to be as much work as doing the planning yourself, but you’re entrusting your future to your financial planner. Be sure to pick the right one.