- Financial Planning
Author: Pratham Wagh
Empowering Women: Financial Planners’ Role in Building Financial Independence
“Empowering Women: How Financial Planners Can Help Female Clients Build Financial Independence” by Lindsey McKay, CFP®, highlights the increasing role of women in shaping the financial landscape and the importance of addressing their specific needs and concerns in financial planning. It discusses how historical gender roles and societal norms have influenced women’s attitudes towards money, leading to behaviors such as risk aversion and a focus on financial security. The article emphasizes the need for financial planners to understand these perspectives and tailor their approach accordingly, including personalized interactions, clear communication, and practical guidance. It also suggests strategies for building trust, empowering women through education, and addressing barriers to financial independence.
by actively prioritizing women’s needs and perspectives, financial planners can help women take control of their financial futures and contribute to broader societal impacts.
Embracing Universal Design: Enhancing Comfort, Convenience, and Safety in Housing Decisions
The article discusses the importance of universal design principles in housing decisions, particularly for older persons, focusing on comfort, convenience and safety. It highlights the challenges in traditional housing solutions and presents universal design as a solution. The universal design ensures ease of use for all, regardless of age, size or ability, with an emphasis on fit and style. The benefits of universal design are described, including improved convenience and safety for all occupants. Provides practical tips for integrating universal design into remodeling projects and home searches. Financial professionals are encouraged to educate clients about the financial implications of universal design and help incorporate it into their overall financial plan. Universal Design Professionals and Resources are recommended for further assistance and guidance.
Comprehensive Retirement Planning: Beyond Finances to Lifestyle Goals
The article discusses the importance of CPA financial planners helping clients prepare for retirement not only financially but also in nonfinancial ways. It emphasizes the need for conversations about clients’ goals, dreams, and lifestyle preferences during retirement. By discussing these aspects early on, planners can assist clients in envisioning and planning for their retired life. Practical suggestions include encouraging clients to map out their retirement goals, suggesting test runs of retirement activities, regularly checking in on clients’ evolving plans, and providing referrals to experts in various retirement-related areas such as health insurance and housing options. Additionally, the article highlights the importance of ongoing support and adjustments during the early years of retirement to ensure clients’ financial and lifestyle goals are being met.
Unlocking the Potential: The Pursuit of a Ph.D. in Financial Planning
The article discusses the pursuit of a Ph.D. in Financial Planning, authored by Brendan Pheasant, Mikel Van Cleve, and Turner Amacher. It outlines the importance and objectives of obtaining a Ph.D. in personal financial planning, highlighting its focus on research, teaching, and advancing the theory and practice of financial planning. The authors explore the curriculum, coursework, and contributions of Ph.D. holders to the profession, emphasizing their role in academia, research, and industry demand for financial planning research. The article also addresses the challenges and commitments involved in pursuing a Ph.D., including financial considerations, time management, and balancing professional and family responsibilities. Despite these challenges, the authors argue that obtaining a Ph.D. empowers individuals to make profound contributions to the financial planning landscape and society as a whole.
The Importance of End-of-Life Planning in Financial Advising
“Knowing the Whole Truth, the Worst, and Providing for It” by David F. Pierce discusses the importance of financial advisors discussing end-of-life planning with their clients. The author highlights the discomfort and reluctance many individuals have in discussing death and dying, but emphasizes the necessity for such conversations given the aging population and advancements in medical science leading to longer life expectancies.Pierce explores various reasons why discussing death and dying is difficult, including cultural differences and psychological barriers. He suggests that financial professionals should be prepared to have these conversations with clients and provides strategies for broaching the topic in a professional and caring manner.The article offers insights into how advisors can initiate discussions about end-of-life planning, including using real-life examples, appealing to clients’ desire for control and protection of their assets, and using quotes or anecdotes to illustrate the importance of facing uncomfortable truths.
Pierce advocates for financial professionals to address end-of-life planning with their clients as part of a holistic approach to financial and advanced planning. He encourages advisors to familiarize themselves with resources and tools available for end-of-life planning and to tailor their approach to suit the individual needs and preferences of each client.
Expanding Financial Planning Services: Integrating Tax Planning and Preparation
This article, written by Luis Rosa, CFP®, EA, discusses the considerations and implications of incorporating tax planning and preparation services into a financial planning practice. Recognizing the inevitable need for tax guidance in client interactions, Rosa emphasizes the importance of integrating tax advice into financial planning. He distinguishes between tax preparation, which involves gathering client documents and filing tax returns, and tax planning, which focuses on proactive strategies throughout the year to optimize a client’s tax situation.
Rosa provides a series of questions for financial planners to consider before offering tax services, including whether to offer tax preparation, tax planning or both; how to structure pricing for these services; Do the work yourself or hire additional staff; and become a CPA or Enrolled Agent. He also discusses the potential benefits and challenges of incorporating tax services into a practice, such as increased revenue opportunities, potential conflicts with other core services, and the need for additional education and compliance considerations.
this article provides insight and practical advice for financial planners to expand their services to include tax planning and preparation, highlights the importance of aligning such services with broader goals and client needs, and considers the impact on planners’ business models and workloads.
ADVICE FOR THE YOUNG PLANNER
“Helping Clients Uncover Their True Cash Flow” by Matthew M. Stranix, CFP, RICP, published in the January 2024 issue of the Journal of Financial Service Professionals, emphasizes the importance of cash-flow planning in financial planning. Stranix provides insights and strategies for financial planners to help clients accurately identify, organize, and confirm their current cash flow.
The article begins by highlighting the significance of understanding a client’s income and expenses thoroughly. Stranix suggests various methods for identifying income, such as analyzing pay stubs for W-2 employees or examining tax returns for business owners. He illustrates potential challenges and misconceptions that may arise when interpreting income data, emphasizing the need for direct communication with clients to clarify any discrepancies.
Next, Stranix discusses strategies for identifying expenses, including the use of itemized expense worksheets and qualitative questioning techniques. He emphasizes the importance of client buy-in and self-awareness in the cash-flow planning process, noting that clients may gain valuable insights by actively participating in expense analysis.
The article also introduces alternative methods for assessing cash flow, such as the “What Is Left?” method and the “Assume Spent” method, which provide more conceptual approaches to understanding available cash flow. Stranix acknowledges the limitations of these methods but suggests they can be valuable tools for engaging clients who may not be inclined to complete detailed expense worksheets.
Stranix emphasizes the importance of employing a combination of strategies tailored to individual client needs and preferences. He encourages financial planners to adapt their approach to fit the personality and communication style of each client, ultimately aiming to empower clients to make informed financial decisions.
Strategies for Advanced Long-Term Care Planning: Beyond Insurance
“Advanced Planning for Long-Term Care Expenses” by Matthew M. Stranix, CFP, RICP, published in the Journal of Financial Service Professionals in September 2023, highlights the importance of planning for long-term care expenses in financial planning. It addresses the potential financial and emotional risks associated with failing to plan for long-term care and emphasizes the impact it may have on retirement income sustainability. The article discusses various nontraditional methods for planning for long-term care expenses, aside from relying solely on long-term care insurance. These methods include asset location strategies, utilizing health savings accounts (HSAs), and leveraging home equity. The article provides insights into how each strategy can be utilized efficiently to fund long-term care expenses and emphasizes the importance of planning in advance. Additionally, it discusses the tax implications and considerations associated with each strategy.
the article aims to provide guidance to financial planners, especially those working with preretirees and new retirees, on addressing the long-term care needs of their clients.
Maximizing Retirement Benefits: A Guide for Small-Business Owners
The article discusses the importance of financial planners advising small-business owners on selecting the most suitable retirement plans for their employees. It emphasizes the need for planners to educate clients on the tax benefits of qualified or tax-advantaged retirement plans, such as SEP plans and 401(k) plans. Various examples illustrate the potential tax savings and retirement benefits associated with different plan choices.
Furthermore, the article highlights the benefits of unit-credit defined-benefit plans for affluent clients, as they allow for larger tax deductions compared to defined-contribution plans. Examples demonstrate how these plans can help business owners maximize retirement savings while minimizing tax liabilities. Additionally, the article covers the advantages of other retirement plan options, including 403(b) plans, SIMPLE plans, SEP plans, and solo-k plans, and provides practical insights into their features and suitability for different business scenarios.
In conclusion, the article provides an overview of various retirement plan options categorized as defined-benefit or defined-contribution plans, highlighting their key features and benefits for small-business owners and employees.
Addressing Recruitment Challenges in Financial Planning: Strategies for Firms and Job Seekers
“Opening the Door: Welcoming Students and Career Changers to Financial Planning” by Daniel Yerger, CFP®, ChFC, AIF, CDFA, discusses the challenges facing job seekers and hiring firms in the financial planning profession. Yerger identifies a recurring hiring cycle where firms hire entry-level planners, invest in their training and development, only to move them to higher-paying positions elsewhere after gaining experience. This creates a “pine tree problem” where entry-level ranks are thin and firms struggle to find qualified candidates for mid-level positions. Yerger suggests that firms need to be more transparent about job postings and compensation, open positions to all candidates and provide clear career paths for employees. Additionally, job seekers are advised to look for companies with clear opportunities for career advancement and increase their visibility to potential employers. Ultimately, Yerger emphasized the need to invest in their employees and adjust compensation expectations to retain talent and encourage career growth within the business.
conclusion
The articles cover a range of topics in financial planning, including empowering women, embracing universal design in housing decisions, comprehensive retirement planning, pursuing a Ph.D. in financial planning, end-of-life planning, integrating tax planning into financial services, understanding cash flow, advanced long-term care planning, maximizing retirement benefits for small-business owners, and addressing recruitment challenges in the financial planning profession. They emphasize the importance of understanding diverse client needs, tailoring strategies accordingly, and providing holistic guidance. Practical suggestions include building trust, empowering through education, discussing lifestyle goals, initiating conversations about sensitive topics, expanding services to include tax planning, and addressing long-term care needs. The articles also highlight the significance of career development and employee retention in the financial planning industry. Overall, they offer valuable insights and strategies for financial planners to navigate various client needs and industry challenges effectively.
reference
MCKAY, L. How Financial Planners Can Help Female Clients Build Financial Independence. Journal of Financial Planning, [s. l.], v. 36, n. 11, p. 44–48, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=5811de00-fd75-3ff4-bc38-c625ea5fc239. Acesso em: 24 fev. 2024.
OLSHEVSKI, J. Planning for One’s Housing Future: Universal (or Livable) Design. Journal of Financial Service Professionals, [s. l.], v. 78, n. 1, p. 34–39, 2024. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=1c03f262-1c24-34bb-974d-9ba911e940ac. Acesso em: 24 fev. 2024.
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PHEASANT, B.; VAN CLEVE, M.; AMACHER, T. Pursuing a Ph.D. in Financial Planning: Bridging Theory and Practice. Journal of Financial Planning, [s. l.], v. 37, n. 1, p. 24–29, 2024. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=ea5129d2-1d4c-390a-8836-bd9ea92a4b65. Acesso em: 24 fev. 2024.
PIERCE, D. F. Knowing the Whole Truth, the Worst, and Providing for It. Journal of Financial Service Professionals, [s. l.], v. 77, n. 6, p. 37–42, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=eefe3825-8401-3399-8a1b-07bd704c264c. Acesso em: 24 fev. 2024.
ROSA, L. Expanding Your Practice with Tax Planning and Preparation. Journal of Financial Planning, [s. l.], v. 36, n. 1, p. 26–29, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=9ea9f6d2-2424-3b59-b477-ab4c1b5ab814. Acesso em: 25 fev. 2024.
STRANIX, M. M. Helping Clients Uncover Their True Cash Flow. Journal of Financial Service Professionals, [s. l.], v. 78, n. 1, p. 15–19, 2024. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=cb1513f0-3490-3a72-bc9e-a0005e4e88d0. Acesso em: 24 fev. 2024.
STRANIX, M. M. Advanced Planning for Long-Term Care Expenses. Journal of Financial Service Professionals, [s. l.], v. 77, n. 5, p. 16–20, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=5232e8eb-9084-32b0-9411-595a48bf2833. Acesso em: 24 fev. 2024.
TACCHINO, K. B. Picking the Best Retirement Plan for a Business. Journal of Financial Service Professionals, [s. l.], v. 75, n. 3, p. 6–12, 2021. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=e184c467-45a6-3156-855d-61985e24d9e5. Acesso em: 25 fev. 2024
YERGER, D. Opening the Door: Welcoming Students and Career Changers to Financial Planning: Financial planning has a conundrum where job seekers and hirers are equally frustrated. Journal of Financial Planning, [s. l.], v. 35, n. 12, p. 24–27, 2022. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=df64c3cc-635f-3ecd-9f03-0d4cd763a76b. Acesso em: 25 fev. 2024.