Selecting a financial planner

Ideally, each person develops their own personal financial plan. However, do not be discouraged if you have difficulty preparing a financial plan for yourself. Understandably, the reality is that many of us do not have the time or sufficient knowledge to become a financial planner for our self. There are also people who have difficulty keeping commitments. Well, if so, you can enlist the services of financial planners.

Admittedly, the financial plan is not easy. There are people who can advance the company's finances, but cannot manage finances for himself.

Broadly speaking, financial planners' job is to help clients measure the financial capabilities as well as provide assistance in choosing a financial product or type of investment. You do not need to worry about calculating and projecting the allocation of funds to achieve your financial goals. With the assistance of financial planners, clients have a grip. Not be confused with the issue or what people say.

A financial planner must present his rights and obligations to his client in the first meeting. Furthermore, the financial planner will gather data and information of clients, ranging from basics such as biographical information to financial information, such earnings and expenditures. Then, financial planner will develop the analytical results against his client becomes a recommendation strategy.

The next phase is to implement a strategy that had been prepared. Of course, financial planner is also obliged to monitor the implementation of that plan. Does the client's target have been reached? Or, are there any expenditure items that need to be trimmed?

In the personal financial planning activity itself, there are two of the most important goals, investment and protection. A financial planner must help the client not only achieve one main goal, while others are not achieved.

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If you are interested in using the services of financial planner, of course you have to choose the most appropriate. In addition to knowing basic things, such as the type of service or rates, you also need to understand the relationship between financial planner and financial services companies. Currently, there is an independent financial planner or not related to financial institutions. While there are also affiliated financial planners or working for certain financial companies.

Of course, an independent financial planner has wider latitude in providing financial product advice to clients. The way of work of an independent financial planner does not necessarily identical. There are independent financial planners who are willing to give advice to clients regarding investment products that fit. Indeed, the task of the planner here was limited to give input or advice. The client remains in control.

However, there is also an independent financial planner who prefers to give general recommendations. If clients already have a reference for a product and they asked some advice, then the planner will give.

In terms of cost, using the services of independent financial planners is more expensive than the services of affiliated financial planners. Affiliated financial planners usually work for banks, securities firms or insurance companies.

Of course, an affiliated financial planner will only offer products that are owned by the company where he worked. The cost of his services for free because it can compensate the company.

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