A financial planner is usually a licensed financial adviser. Practicing as an independent financial advisor, they advise customers on financial investments, insurance, estate planning, taxes and retirement. A financial planner should have an MBA, CPA, or other degree that qualifies them as a financial planner. This degree shows an understanding of finances, risk management, and business communication. An MBA is the highest degree to obtain from an accredited university.
Financial planners can also be called wealth managers. They use a mathematical model called the pricing model to determine what investments will earn a return. This type of calculator allows for inputs from current and historical data to provide a high level of accuracy. The pricing model is based on the assumption that future prices of securities will be fixed or vary by a set amount.
A primary function of a financial planner is to advise their clients of sound investments. Their advice may be utilized in purchasing real estate, equities, futures contracts, derivatives, structured settlements, life insurance and pension plans, among others. They work with advisors, stockbrokers, bank officers, insurance agents, and investment advisers. Many financial professionals work independently or as an advisor to large corporations and governments. They may be self-employed or work for a privately owned firm. Read more about cpa network.
A financial planner can help determine the size of an individual's investment portfolio. This depends on their knowledge and experience. Some planners start with a client's assets and financial objectives and then build an investment portfolio to achieve these goals. Other planners build an investment portfolio using simpler methods, often utilizing asset classes and other techniques to create a diversified portfolio.
Some financial planners work only with a specific sector of the financial situation. For example, someone may choose to work with real estate brokers to help them determine the best real estate investments. Other specialists help individuals design and maintain a comprehensive long-term financial situation. These may include 401(k) plans, individual retirement accounts, or variable Annuities.
As a final example, financial planners work with the general public to provide investment advice. Some work as independent consultants. Others may work for large corporations as finance department managers. Still others may work as financial analysis specialists for a wide range of fields including estate planning services, life insurance and pension plans, commodity markets, commodities, foreign investments and more. Regardless of the area of expertise, each financial planner has his or her own specialized area of experience. Read more about WealthAbility network.
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