Where to find a Certified Financial Planner
CFPs are small in number in India. New CFPs are passing out every quarter and you can find the directory of CFPs in India at http://www.fpsbindia.org
Basics of financial planning process
Financial Planning Defined
Financial Planning is the process of :
Examining a client’s personal situation, financial resources, financial objectives and financial problems in a comprehensive manner,
Developing an impartial, integrated plan to utilize the resources to meet objectives and solve problems,
Taking the steps to implement that plan once approved by the client, and
Monitoring the plan performance to take corrective action as necessary to assure that results match the plan projections
Financial Planning Defined
“Financial Planning is planning for and managing life’s financial outcomes”
Financial Planning Process
A formal, six-step process, formulated by the College of Financial Planning (US) in 1972, designed to address, in whole or in part, life’s financial issues and opportunities.
Financial Planning Process Step One: Establish the Client/Planner Engagement
You and Your Planner Should
Discuss your objectives & expectations
Discuss the services available
Clarify responsibilities and time frame
Finalize the scope of the engagement
Determine the fee/compensation arrangement
Financial Planning Process Step Two: Gather Data & Determine Goals
Your Planner Should
Obtain information & documents
Help you “refine” or crystallize goals
Develop an understanding of your values & attitudes
Financial Planning Process Step Three: Examine Current Financial Condition, Problems & Opportunities
Your Planner Should
Analyze information, Identify problems & opportunities across each major financial planning discipline
Finance – Asset & Liability Structure, Cash Flows
Investment Taxation – Ordinary and Income
Risk Management – Insurances & Asset Protection
Law – Estate, Charitable & Legacy Planning
Financial Planning Process Step Four: Develop & Present Financial Plan
Your Planner Should
Prepare & present a personalized financial plan
Establish a review cycle
Financial Planning Process Step Five: Implement Your Plan
Your Planner Should
Assist the Client or manage the process as defined in the Engagement Agreement
Financial Planning Process
Step Six: Monitor the Financial Plan;
You and your Planner Should
Review changes in personal circumstances
Review and evaluate impact of changing tax laws
Review and Discuss changing life circumstances
Make periodic adjustments or recommendations as necessary
Hello world!
Greetings!As part of Procyon Financial Planners’ (www.procyonfp.com) efforts to popularise financial planning in India and to focus on CFPCM, we have started this blog space. Title of the blog aptly describes our mindset. We are passionate about financial planning profession and would like see the movement grow in India. Financial Planning process augurs well for Indian investors who would like to see professionalisation of financial advisory services. Myself and my partner Krishna Kumar, CERTIFIED FINANCIAL PLANNERCM would be contributing our ideas on financial planning in this blog space. We would like to receive your valuable comments/feedbacks from time to time so that this blogspace becomes user friendly and interactive.Wish you a very happy Dasara festivities.
Yours truly
Narendra KN (Naren)
CERTIFIED FINANCIAL PLANNERCM
email:knnarendra@procyonfp.com
