What Does a Financial Planner Do?
A financial planner offers a variety of services, ranging from comprehensive plans to assisting a team of advisors. A financial planner can work with you to determine your specific goals, such as retirement, saving for a down payment on a house, or paying off your student loans. Many financial planners also sell products, so the advice they give will be related to the products they sell. For example, an insurance agent will probably not discuss other investment options, such as real estate.
The best Sara-Bay Financial planner can help you with your personal finances during major life events, such as getting married, having a child, or even going through a divorce. In addition to helping you make financial decisions, a financial planner can also help you plan for major life events like retirement and minimize taxes. While many financial advisors do the same things, you should still do your research to make sure you're hiring a qualified financial advisor. A good financial planner will put your needs and interests first.
A financial planner should have a physical office. While many people believe that financial advisers can work from home, it's essential that they have a real office and staff. You don't want a planner who uses razzle-dazzle to attract clients. For example, one convicted securities fraudster posed as an adviser and made "international" calls. His clients never discovered the truth. They lost thousands of dollars with this adviser. Financial planners shouldn't promise unrealistically high returns or "guaranteed" investments.
If you're serious about becoming a financial planner, you'll need to have a bachelor's degree. Your coursework should include courses in economics, accounting, and finance. You can also add a certification in the field of financial risk management, which is awarded by the Global Association of Risk Professionals (GARD).
You should look for a planner who has several professional certifications and experience in your specific needs. Typically, financial planners hold the CFP and ChFC certifications, but if you're seeking an advisor who deals in investment, they probably have the CFA. The certifications can be helpful when choosing a financial planner, but you should still choose someone who respects your input and understands your goals. There are many resources and tools from this website to help you find the right financial planner.
Almost a third of American households use a financial planner. According to the Investment Company Institute, $30.5 trillion is under the management of investment companies in the U.S. The majority of this money is held in actively managed mutual funds and ETFs. These funds account for nearly half of all investment accounts in American households. A financial planner may also sell life insurance, mutual funds, and annuities. This is a common way to pay for services.
For additional details regarding this topic, check out this link: https://en.wikipedia.org/wiki/Financial_plan.