Financial Planning

The allocation of scarce resources to meet our monetary wishes, Income Tax Planning


Domain

Parts

Remarks

Financial?

  • Economics, sustaining resource in market economy
  • Allows & enables the allocation of things
  • Our rice bowls
  • Things like money, properties, credit, etc.
  • Anything that can be realized
  • Planning?

    • To design a course of action to reach defined goals
    • Esp. when conflicts, constraints, uncertainty & risks are abundant
  • Many ways of planning
  • Self-directed, others employ professionals
  • Done through methods, experience & trials
  • Financial planning?

    • Correct allocation of our estate, incomes & expenses to meet our needs & wants
    • In modern society, it has become a sophisticated field with trained professionals
  • In knowledge economy, financial planning as a core competence would be more heavily employed by the increasing number of young professionals
  • What are the types of services in financial planning?

    • Investment profile & analysis
    • Insurance planning
    • Estate distribution
    • Retirement planning
    • Tax planning
    • Cashflow analysis
    • Net-worth analysis
    • Financial needs analysis
    • Child education funding
    • Business continuity planning
    • Corporate pension planning
    • Employee benefits/liabilities
  • The scope of financial planning is increasing
  • More personalized & sophisticated products & services can be expected, as the industry becomes more competitive (can be analyzed with Porter's five forces model)
  • What can consumers expect from financial planners?

    • They are the trained professionals engaging in the above services
    • Providing personalized services at a premium commission, often in advanced tertiary economy
    • Help to relieve the clients' attention from the chore of managing their own finances
  • In the New Economy, people tend to focus heavily into their own competence & outsource mediocre tasks to others
  • Also as a way of diverging specialization
  • Note people only employ FP when they feel or realize FP can do a better job than them
  • How to choose financial planners?

    • Same as choosing any agent
    • Competence, experience, quality, price & of course fitness (mutual trust & relations)
  • Go to this link
  • How to become a financial planner?

    • 2 ways:
    • Unorthodox: by word-of-mouth, use their uncertified financial competence to woo your would-be clients
    • Orthodox: diligently take course, be officially certified & either be employed by a firm or start one yourself
  • Certified financial planners
  • FPIA Home Page
  • Kaplan Colleges
  • Singapore College of Insurance (SCI)
  • How to know more about financial planning?

    • Simple … ask the horses
    • Direct: The people in it and about to step in
    • Indirect: resources like exhibitions, institutions, library, Internet (search)
  • About.com
  • Financial planning interactive
  • Financial Planner magazine
  • Yahoo Finance
  • Advisor
  • Asset management
  • FMA Online
  • Hosted by www.Geocities.ws

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