What Is Wealth Management And Financial Planning?
March 4, 2015|Posted in: Finance
You may personally handle some of your financial affairs but at times you need the services of a financial professional. These professionals include financial planners, securities brokers, insurance agents, attorneys and other specialists. Still, you may be wondering what wealth management and financial planning is and how their services come in handy. Financial Planning is a professional service that specifically deals with planning for your finances. Wealth Management on the other hand is a combination of both financial/investment advice, legal/estate planning and accounting/tax services all for one fee. Wealth Management basically encompasses all aspects of your financial life. These professionals will apply a set of specialized knowledge and skills to help you achieve your goals and objectives related to the accumulation, protection and distribution of wealth.
Why Hire An Expert To Help You
A financial planner being a professional adviser will help you set financial goals, write and also implement a comprehensive plan to manage all aspects of your finances. They will give you information and advice on how to manage your cash, obtain credit and buy or even manage a home. A planner with specialized knowledge in areas such as tax planning or estate laws will coordinate a team of experts who can help you. He may handle only a single issue but unlike other financial advisers, he will also look into your finances as a whole and then help you plan accordingly.
What To Consider Or Credentials To Look For
Some financial professionals who use this title may not be truly qualified to give comprehensive financial planning advice. Therefore, evaluate the services they can offer and their credentials. This is to find an expert whom you can rely on to give you sound advice particularly if you lack the expertise to completely handle your financial affairs. They may be trained in only one area of expertise or are just salespeople marketing themselves as planners. Generally, a financial planner will have one or more credentials. A Certified Financial Planner with more than 3 years of experience, Chartered Financial Consultant and Chartered Life Underwriter, Accredited Personal Financial Specialist or a Registered Financial Consultant. Some financial planners also specialize in certain areas. Therefore, you may not rely on them to provide general financial planning advice unless they are qualified financial planners.
A financial planner is usually paid a flat fee or an hourly rate to develop a financial plan with no asset management or commissions required. Where the planner manages your assets, then his fee may be equivalent to a small percentage of your income and/or assets or by receiving commissions from products he sells to you. There are also other related expenses you have to consider such as transaction fees and management fees related to the products they recommend. This will help you calculate the cost of using their services.