Getting to Know the Profession of Financial Planning

financialtreat – will explain about Getting to Know the Profession of Financial Planning that you will get in the following article. Let’s look at this article carefully!

The profession of Financial Planner is actually a profession that is not so unfamiliar anymore, especially in the present day. It seems that the more here, the more people feel the need to be helped by financial planners.

Not without reason, this is proof again that more and more people are aware that financial planning is essential. Still, for one reason or another, they find it impossible to do it themselves so they need an expert partner to help.

Yes, this is where a financial planner comes into play. Not much different from doctors who will help you recover from illness, financial planners will help make your finances healthier. So, when do you need the help of a financial planner? Your finances should “hurt” first. If it doesn’t hurt? Yes, you don’t need the help of a financial planner.

Indonesians need a Financial Planning Profession

The profession of financial planning grew and began to develop in countries that have a large number of middle classes. Indonesia in 2008 showed signs of increasing the number of middle classes. This sign has been confirmed by the development of the number of Indonesian middle class in 2010 which continues to increase sharply.

The middle class needs financial planning assistance because the middle class with a sizable income, they have big lifestyle challenges, has dreams and new financial goals (home, car, health, education, and retirement). Without good financial planning, of course, what they dream of will be difficult to realize.

In addition, there is also a new challenge for the middle class, namely the number of financial products is very large. Did you know Indonesia has more than 500 mutual funds, and more than 500 issuers (companies listed as public companies and their shares are traded)? The data is based on data as of January 5, 2015. In addition, there are also many scams under the guise of bonding investment. OJK on November 7, 2014, released 262 investments that were suspected of problems.

There are many things about finances that must be considered by the people of Indonesia. Strategies to meet financial goals, strategies for investing, strategies for proper insurance, strategies for being financially free and others. The profession of a financial planner is here to help the community to manage its current finances and its financial future.

What is the Financial Planner Profession

A financial planner is someone who is professionally asked for help by people who have difficulty in managing finances, in order to achieve financial goals in accordance with the wishes of the client. The “product” offered is in the form of a complete financial planning scheme but of course, one that suits the needs of its clients.

So, for example, if the client needs help to make investment planning for the assets he has, then the financial planner will make an investment plan scheme, including various investment instrument recommendations that have been adjusted also to the client’s risk profile.

Well, if the client needs help to solve the debt problem, then the financial planner will create a financial planning scheme so that the client’s debts can be paid until paid off.

Simply put, financial planning is a realistic process that we need to do to achieve our financial goals. So, what is a financial goal? That is something or condition that we want or aspire to achieve in life, and need funds (which are not small) to make it happen. So you could say, when we are talking about financial goals, then at that time we are talking about life goals. When we make a financial plan, then at that time we are making a life plan.

Which is better independent financial planner or tied financial planner?

If you want to consult a financial planner, set your goals. What do you need or what are your expectations of consulting a financial planner? If you want to know a financial product more deeply, you are more suitable for discussions with financial planners who work for the company.

If you want to get more in-depth information you can consult an independent financial planner. More in-depth here means: You not only want to talk about insurance needs, but also investments, managing finances, inheritance and others.

Financial Planner Function

From the explanation above, we also get an idea of the function of a financial planner here. Among them:

Provide expert advice

Of course, a financial planner aka a professional financial planner is a person who is more expert about finance than ordinary people in general. There is a special certification for financial planners, called CFP–although the existence of CFP remains not a person’s main guarantee for experts in providing financial advice or consulting to others. However, at least financial planners have more experience because they have an educational background in this field or because they are passionate in their fields.

For example, the client has a problem to build a pension fund. So, they have the most effective and efficient way to make a realistic plan to realize these financial goals. Simply put, they already have a formula that is usually quite valid, from starting to calculate investment needs to how to use what is there in order to achieve goals.

Provide an objective assessment of our financial condition

Remember the saying goes, the ants at the end of the ocean appear, the elephant in front of his own nose is invisible? yes, that’s it. We need the “eyes” of others to be able to see our mistakes, to then be correcte according to their needs.

Financial planners or financial planners will be able to provide an objective assessment of our financial condition that may indee be sick, and can help to find the root and location of the disease where.

We ourselves may have trie to find the point of mismanagement of finances where, but yes difficult. Because basically, seeing mistakes from afar is inde easier, than looking for mistakes that are near us.

With their formula, financial planners will be able to show where our mismanagement lies, with numbers that will never lie. They will make us literate — for example, actually we can’t afford to send children to expensive international schools. But, we are quite capable of sending children to private schools whose quality remains good. Well, financial planners can make us literate about such things.

Help create a suitable financial plan

The function of a financial planner is to assist clients in creating a financial plan that suits their needs. Because they have made a “diagnosis” of the financial illness experience, they can then provide a plan or proposal for treatment or improvement. They plan the best treatments to solve the problems experience by the client.

Not only that, financial planners will also help so that the repair plan and problem solving can be realize properly. They will ensure the implementation of the financial plan can be do concretely. There are even financial planners who do not hesitate to “punish” recalcitrant clients.

If anyone is “misse” how? Because indee financial planners are still human beings who do not escape from mistakes, of course they must also have mistakes in the plans they make. When it comes to it, they will evaluate, and if necessary, they will also make changes to the plan scheme to make the results more optimal.

So, the existence of a miss in a plan is a natural thing. With a note, the miss is not fatal. If it turns out that the error is fatal, you can file a complaint and ask for compensation.

Also read more about financial service:

The profession of Financial Planner: Provide recommendations for financial instruments or products

Most ordinary people will not have time to study and recognize the character of various financial products one by one in depth to then decide which one is the most suitable for his financial plan. Whatever the reason, it can be because of busyness, feeling incompetent, or just lazy.

Financial planners — with all their knowledge and a lot of experience — certainly master it more, so they can provide the best recommendations to clients. They will try their best to get kllien the best.

Well, here what the client must understand really is. Even though a financial planner is already in charge of providing recommendations, the client is still a decision maker. Supposedly, a good financial planner will not force clients to comply with his recommendations. If the client feels any objection to his recommendation. The financial planner must accommodate this, so that an agreement is reache again.

So, financial planners can indee recommend products, but the final decision remains in the hands of the client. Well, until here, hopefully you have become more familiar with the profession and tasks of financial planners. So you can recognize the times when you need their help to solve the financial problems and problems you face.

Again, not everyone needs a financial planner. Your financial condition must be “sick” first to be able to utilize their services optimally.

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