Financial planner information about the basic financial concepts that sets a professional financial planner apart from any other types of financial planner advisors.
A personal financial planner who helps you prepare a personalized financial planner program, assists you in making the proper adjustments when necessary and helps you reach your personal short term and long term financial goals.
In short, you and your financial planner will determine the scope of your financial planning association, establish the responsibilities towards each other, set a time frame, agree on a financial planner fee and sign an agreement.
You will both discuss your personal requirements, your priorities and your objectives. Your financial planner will then analyze the information you supplied, evaluate your financial situation and determine if your financial objectives can be attained and to what extent.
A financial planner who understands your requirements, your dreams, your objectives and your timeframe. Who masters finances and who has an up to date knowledge of the changing economy. Who truly listens to you and who answers all your questions. Who obtains meaningful results.
According to the Autorité des marchés, your personal financial planner must be familiar with the legal requirements related to financial planning, must properly explain your rights and your responsibilities and must establish an ethical and trustful relationship with you.
Also recommended by the Autorité des marchés financiers, is the integration of the six (6) fundamental financial components that clearly distinguish financial planning from product recommendation.
Component #1 describes your general financial situation in relation with your income, your living expenses, your debts and your savings. A personal financial detailed description and a strong basis for all your present and future financial planning activities.
Component #2 establishes your financial goals and clearly sets apart your desires from your requirements. Financial goals such as establishing an extensive savings and investment program and preparing your financial security and your retirement.
Component #3 outlines possible courses of action and considers various alternatives. Alternatives such as continuing on the same line, expanding the present situation, changing the current situation or taking a new and different course of action.
Component #4 evaluates potential risks using specific and reliable sources of market and financial information to identify your risks and evaluate your alternatives based on credible and dependable financial planning information.
Component #5 creates and implements your financial action plan starting with your immediate and short-term goals. It then refers to the services of an insurance agent to purchase property insurance, and those of an investment broker to purchase stocks, bonds and/or mutual funds.
Component #6 appraises your financial decisions on a regular basis. A decision-making process that enables you and your financial planner to make the necessary adjustments when necessary and to adjust your financial decisions and activities according to your current situation.
Montreal PROFESSIONALS KIT
Financial Planner Information by Rachel Louise Barry