FINANCIAL PLANNER

by Thanakrit Lersmethasakullersmethasakul@live.com

A financial planner or personal financial planner is a practicing professional who prepares financial plans for people covering various aspects of personal finance which includes:

Risk Management and Insurance PlanningInvestment and Planning IssuesRetirement PlanningTax PlanningEstate PlanningCash Flow and Liability ManagementRelationship ManagementEducation Planning for kids and the family members

Personal financial planning is broadly defined as …

“A process of determining an individual's financial goals, purposes in life and life's priorities, and after considering his resources, risk profile and current lifestyle, to detail a balanced and realistic plan to meet those goals”.

Objectives

- To create the greatest probability that all financial goals (anything requiring both money and planning to achieve) are

accomplished by the target date.

- To have a frequently-updated sensible plan that is proactive enough to accommodate any major unexpected financial event that could negatively affect the plan.

- To make intelligent financial choices along the way (whether to "buy or lease" whether to "refinance or pay-off" etc.).

CFP® Certification: The Standard of Excellence

CFP Board’s coursework:

General principles of financial planningInsurance planningInvestment planningIncome tax planningRetirement planningEstate planningInterpersonal communicationProfessional conduct and fiduciary responsibilityFinancial plan development (capstone)

The Four E'sEducation

ExaminationExperience

Ethics

Demographic breakdown Report 2011

Demographic breakdown Report 2011

Demographic breakdown Report 2011

Industry Outlook 2008

Potential barriers to growth for consideration

1. Supply of suitably qualified professionalsA large number of respondents identified the lack of supply of local

experienced financial planning professionals as a potential significant barrier to future growth.

2. Professional standardsThe complexity of the Hong Kong regulatory framework, which made the

establishment of a series of uniform professional standards across the financial planning industry difficult.

Industry Skill Review

Insurance industry- Strong in business development skills.- Need to develop additional technical skills.

Retail banking- Need to develop a stronger technical skill base.- Need to develop the skills to distinguish what is

the most appropriate product(s) for their clients’ financial plan.

Service Offering Outlook for the Future

In many international markets, as the financial planning industry matures and consumers developed a more comprehensive understanding about the importance of

seeking professional financial advice, the industry remuneration methods changed from a commission based income to a fee based one.

In general, Hong Kong consumers typically did not like paying up front fees. The lack of regulatory pressure on the issue of fee disclosure was also considered significant.

THANK YOU