Introduction to Financial Planning
Financial Planning is a process of providing advice and assistance to clients to determine whether and how clients can meet their personal financial needs and life’s goal through proper management of financial resources.
It is a six-step process as given below:
Step 1: Establishing and defining the client planner relationship
Step 2: Gathering client data and goals
Step 3: Analyzing and evaluating the financial status of the clients
Step 4: Developing and presenting Financial Planning recommendations and/or alternatives
Step 5: Implementing the Financial Planning recommendations
Step 6: Monitoring the Financial Planning recommendations
Certified Financial Planner (CFP) Certification
FPSB India is the principal licensing body that certifies the CFPCM / AFP Education program in India. Anyone who wishes to undergo the CFPCM/AFP Program, will have to first get registered with one of the FPSB India approved Education Providers. This model establishes the delivery structure of one of the 4 Es viz., Education, Examination, Experience and Ethics. Education is an integral component of the CFPCM Certification program and any one aspiring to become CFPCM / AFP has to register himself with any of the FPSB India’s approved Education Providers (visit http://www.fpsb.co.in for details of education providers in your vicinity). However, certain candidates having specified qualifications and work experience have an option of applying through Challenge Status wherein they can challenge the CFPCM Certification Education Programme subject to conditions.
A unique feature of the course is that it can be pursued in both formats, classroom study as well as distance learning.
Eligibility
There are two options for CFP certification eligibility:
. for 10+2 pass, the candidate needs to have a minimum work experience of 6 years in the financial sector,
. for Graduates, the candidate needs to have a minimum work experience of 3 years in the financial sector.
Career Options
Candidate with any background can strive for CFPCM designation, it is one of the most prestigious qualifications within the Financial Planning Industry can only be obtain in India with FPSB India. This program is specially designed for working professionals as well as for prospective Finance Professional. Financial Planner can establish their own financial planning practice either by themselves or together with other planners. Successful candidates can also work for:
• Banks
• Financial Planning Organization
• Life Insurance Companies
• Accounting or Law Firms
• Stocks & Securities Brokers
• Asset Management Companies
• Credit Counselling Organizations
• Large Companies to look after Employee Benefits
Remuneration
Practising CFP can earn agency commission from various financial services companies whom they represent. They can also earn fees from their clients for such financial planning. CFP working for companies can expect a starting salary upwards of Rs.15000/-.
Cost of Course
This could vary across education providers and can range between Rs.50,000/- to as high as Rs.75,000/-.
Course Contents
Module I Introduction to Financial Planning
Module II Risk Management and Insurance Planning
Module III Retirement Planning and Employee Benefit
Module IV Investment Planning
Module V Tax and Estate Planning Module VI Advanced Financial Planning
Institutes/ Colleges/ Academy
Nodal body conferring the CFP certification is Financial Planning Standards Board (FPSB). Candidates can visit http://www.fpsb.co.in for more information.
