Introduction – Certified Financial Planners
can you manage your own money? Can you invest in right stocks/ funds, save tax, opt for right insurance, or plan for your retirement? Probably yes, if you have excelled in the financial planning field. However, the rest 80% of the lot need an advisor’s help in this regard.
Certified Financial Planners are your guys’ next door if you belong to the rest 80% of the population. These guys have an expertise in most of the areas of personal finance. Many of These Certified Financial Planners (CFPs) have other feathers in their hat as well – MBAs, research analysts, Chartered Accountant, etc.
As per Financial Planning Standards Board India, “CERTIFIED FINANCIAL PLANNERCM Certification is a mark of excellence granted to individuals who meet the stringent standards of education, examination, experience and ethics. It is the most prestigious and internationally accepted Financial Planning qualification recognized and respected by the global financial community. The CFPCM Certification wins trust and presents opportunities worldwide.”
This certification, not only gives a kick start to their career but will also add to the professional worth of the advisors. Also, they cater to the population that earns well.
This high earning population will definitely look up to advisors who have an expertise in the same.
These advisors can effectively manage your wealth. This includes financial planning, financial management, tax planning, estate planning, debt and risk management.
Certified Financial Planners: The demand-supply gap
Certified Financial Planner is no doubt a golden feather in the hat.
So, for any advice related to your wealth or goal planning, you should definitely look up to a Certified Financial Planner.
However, as far as budding advisors are concerned, there is a bit difficult. Since this world of advisors is settled, having a population of years of experience holders, you might find difficulty in not only entering this space but also in surviving. To add to their woes, the initial pay scale is not good enough.
However, since the opportunities are immense, and there is a bright future ahead, many are applying for this course. Further, as CFPs are getting more popular, people are getting to know about them, and hence since there are not many in the world of advisors, people are looking for someone, whom they can trust.
What the data says
If data is to be believed, there are more than 1 lakh Certified Financial Planners across the globe, and more than 350 CFPs are there in India. There 8000 applicants who are pursuing.
Hence, there will more certified advisors available in the coming years to cater the needs of rest of the population.
Mr Mukesh Gupta is one such Certified Financial Advisor. He is Fellow Chartered Accountant as well. So for any kind of Financial Planning or wealth management need you can connect to him.
What Certified Financial Planners do?
A certified financial planner will build your financial plan in depth. However, you need to be open with him as far as financial scenario is concerned, because he’ll build a plan accordingly.
Any CFP, will analyze your current financial situation first, measure the gap between your goals and current financial health and suggest you the investments accordingly.
With his help, you’ll be able to bridge the gap between your goals and your current financial status.
In short, he will:
- Establish financial goals & make a blueprint to achieve them.
- Evaluate your financials with the thorough analysis of your assets, liabilities, income tax &investments.
- Suggest the model portfolio considering risk appetite, tax suitability and execute the plan.
- Review your plan performance regularly & modify accordingly
Hence, he is your one stop shop for any kind of financial advice you need.
Traits of Certified Financial Planner
They have expertise in Financial Planning and wealth management
The qualification of Certified Financial Planner is hard to achieve. A candidate has to get the exam cleared and along with it needs at least 3 years of experience in the wealth management and financial planning field. Hence, these guys have expertise in this very field. Further, this industry is always developing- there are new laws coming up, performances of the funds change with respect to markets ups and downs, the standards, etc. Further, CFP should also be able to predict to an extent how a market is going to work in at least coming few years.
A complete financial plan includes tax planning, cash flow planning, retirement planning and investment management. A good certified financial planner is a pioneer in these respective areas. He is also able to analyze how and where to invest, keeping in mind the risk bearing capacity of the client.
They put clients’ interests first
Whenever there is a conflict of interest between the clients’ and his, a good financial advisor should be able to choose what’s best for his client. Further, as per rules and regulations of Financial Planning Standard Board India, all the Certified Financial Planners have to follow the code of ethics. This code states that all the CFPs have to put their client’s interest first, they should provide professional services with integrity and objectivity (among others).
They work with you
Any good certified financial planner (CFP) will patiently hear your plans, analyze facts and figures and while formulating your financial plan, he will discuss what’s and why’s with you as well. A good financial planner will work with you to make your dreams come true!