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Job Perks of Financial Planning

Jae young Yang - CFP Koreaby Jaeyoung Yang, CFP

It has been quite a while since the profession of financial planning was first introduced to Korea. However, it was only a few years ago that the general public became aware of the term, financial planning, and started to show their desire to receive the service.

When financial planning first came to Korea, high-income earners were considered the only beneficiaries of the service. This notion is partly attributed to the planners’ intention to create revenues by recommending financial products, since the majority of the financial planners’ revenues were based on commissions.

Is financial planning only for the rich, though? Few financial planners would agree with this. Low-income people need financial planning, too.

Continuous Relationships with Clients 

If people understood how financial planning differs from other financial services such as wealth management or investment advising, they would understand why everyone would benefit from financial planning. Financial planning is not meant to be a one-time service for clients to resolve a financial goal of theirs. For example, some financial professionals, such as investment advisors, aim at increasing the client’s wealth or improving the client’s tax techniques to save them money. Investment advisors will see their client relationships end after one or two meetings. In contrast, financial planners will continue to maintain their relationships with clients for a lifetime, assuming their services are satisfactory.

Financial planning is best used as a continuous service that helps clients achieve both their financial and non-financial goals throughout all stages of their lives. This is one trait that makes the financial planning career so attractive. Just as a marine is said to be a ” forever marine,” a financial planning client can be a “forever client.”

Financial Planning is a Family Business  

It is also common for families to all use the same planner. For example, in the course of inheritance planning, which involves handing down a client’s wealth to his or her spouse or descendants, the planner gets exposed to the opportunity of creating subsequent clients. Most of the time, new clients can be added when the financial planner performs investment, insurance, and retirement planning.

It is important to understand that financial planners offer holistic advice to clients, meaning they consider all important aspects of clients’ lives. For instance, when a client passes on their wealth to their descendants, they want to consider, not just tax-saving measures, but also the avoidance of conflict among their loved ones. If this is executed successfully by the planner, then they can likely expect the loved ones to become  future clients. In summary, a huge advantage of being a financial planner, is the relative ease of gaining new clients.

The CFP Certification Differentiates Planners 

As the public becomes more informed, they will realize that they want a certified professional with a license, who is competent and trustworthy. Even though anyone can practice financial planning without a license, financial planners can differentiate themselves with a CFP certification. It appears to be solidifying its position in the financial planning community as the most authoritative and credible license. The CFP credential demonstrates to the client that the planner is competent, has a strong sense of ethics and receives continual education to increase their ability to deliver the best financial planning.

When done correctly, financial planners truly make a difference in their clients’ lives which is what makes the career so attractive.

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