Financial Planning
AUTHOR NAME:Nikita Dubey
Articles
1.A DECADE OF RESEARCH IN THE JOURNAL OF FINANCIAL PLANNING (2011-2021)
Author Anderson ELT(2022) state that a review that was conducted for articles published between 2011-2021 in the journal of Financial Planning to examine themes across theories , datasets , data analysis strategies, research methods , and implications for reserachers and practitioners.The journal research relied heavily on secondary data, most of which camefrom historical returns and hypothetical data from simulations.Contributions relied heavilyon regression analysis .A considerable number of articles did not use any statistical approach .Qualitative research was absent.Frequently cited article topics included money scripts,retirement planning and Bitcoin in Enchaningthe efficiency of an Investor’s portfolio being cited nearly twice as much as subsequent journal research . Only 38 articles applied overt thoertical frameworks to ground their research .Approximately one third of the articles had a practice implication header but fewer had a research implication header .Findings identified prominent financial planning topics in the last decade and bring attention to those that would benefit from increased attention with hopes to encourage future research and practice.
2. LIFE AND FINANCIAL PLANNING IN THE TIME OF COVID-19
Author Belletsky ELT(2020) state that CARES act that is Coronavirus Aid, Relief, and Economic security Act 2020 and the subsequent paycheck protection program and health care Enchancement Act , the U.S. $2.7 trillion dollars to individuals and business to weather COVID-19 related issues.Adding life insurance or taking advantage of existing life insurance cash values can make smoother sailing at the time of retirement income planning.Most individual earning less $75000 are eligible to receive a one time $1200 payment that was sent out beginning in the second week of April.The funding
1 and July 15,2020. Federal student loans owned by the U.S. Department of eduction loans , Federal Direct Loans and Federal perkins loans payment and interest accrual through September 30,2020 are automatically suspended.Approximately $350 billion of the CARES Act was dedicated to preventing layoffs and business closures while workers must stay home during outbreak .
3. UNTANGLING BEHAVIORAL FINANCE AND THE PSYCHOLOGY OF FINANCIAL PLANNING
Author Klontz and Bradley T (2023) state the relationship between behavioural finance and the psychology of financial planning. This include how to help advisers to better establish rapport with clients, increase clients,increase client motivation to make changes and adopt techniques to help clients overcome their resistance to change and information required to support client’s believe.
4 .HOW FINANCIAL PLANNERS CAN HELP FEMALE CLIENTS BUILD FINANCIAL INDEPENDENCE
Author Mckay and Lindsey(2023) state empowering women in Financial planning , emphasizing the increasing role woman play in shaping the financial landscape.In the past societandal norms often dictated that men were the primary earners , while women took on the responsibility of stretching those funds to meet the family’s expenses until the next paycheck arrived .Economics downturns such as recessions or depressions,would amplify financial scarcity for families .Women often had to find innovative waysto make ends meet , such as repurposing resources , seeking additional sources of income , or making sacrifices to ensure their family’s well being.Trust is a fundamental element in any successful financial planning relationship. for women developing trust often requires personalized interactions that acknowelgde their individual circumstances ,goals, and concerns.By taaking time the time to listen actively and demostrate empathy,financial professionals can create a safe and supportive environment where women feel comfortable sharing their financial goals and fears.
5. PURSUING A PH.D IN FINANCIAL PLANNING
Author Pheasant ELT(2024) focus on the pursuit of a Doctor of philosophy in personal financial planning , examining its transformative impact in individuals research capabilities , contributions to financial planning thoery and practice and eductional roles in shaping future planners The commitment required to pursue a ph.D in Financial Planning ; the scarcity of ph.D graduates in personal financial planning is multifaceted issue with several challenges .First is the substantial gap in earning potential between practitioners and acadamicians is a stark reality .The Ph.D program is also intensive and expensive , so financial palnners practicing and pursuing this educational path have significant hurdles to overcome without commensurate financial rewards.It is not merely an acdamic pursuit but a transformative journey that empowers individuals to reshape the financial planning landscape.
6.FINANCIAL PLANNING CONSIDERATIONS FOR AMERICANS WORKING ABROAD
Author Ragle (2018) state that global economy frequently provides opportunites for employees of U.S. organizations to live and work overseas . Providing financial and tax planning services to clients becoomes complicated when U.S. citizens residue outside the united states. Living abroad leads to complications related to taxation,saving, and investing . Developing a thorough understanding of all nusances of these complications id likely beyond the ability and/or interest of the average expat .The financial professional needs to be aware of tax laws and other financial reglations that impose severe penalities for noncompliance.Organizations that employ these expatriates should be aware of potential pitfall so that they can caution their employees and direct them to professionals who can assist them.
7.WHAT HAPPENS AFTER THE INITIAL FINANCIAL PLAN IS COMPLETE
Author Spiller and Charesse(2022) state that what happen after the initial financial plan is complete,how financial plan is implemented .Firstly client onboarding is complete it should be ensured and once your initial planning recommendations have been provided , take time to set expectations with your clients .After this your team is here to help you to complete implementation tasks and financial pal recommendations on your client’s behalf they also help to create consistent process around implementation that takes some of the work off your plate.If you’d rather keep some of this work in house but don’t want to hire a full time staff member , you should explore outside solutions.wyou can engage in a referral partnership with , having white labeled services available to your clients can create a sense of security .Lastly it is to select your implementation approach . Their is in total three 3 approach . Do-it-yourself , Done with you and Done for you. Do-it-yourself is some advisers steer away from DIY packages because they’e concerned about ongoing revenue and they aren’t sure whether can provide the best possible experince if the client is left alone to implement their strategy . The key is to create a way for your DIY clients to implement your plan with an accountability partner.This can be you or someone else in your firm.Done-with-you is an ideal implementation process for adviser firms that want a more collaborative approach.After you present your client’s initial financial plan you can create anaction plan for both you and your client.Done-for-you this approach consists primarily of in-house services.The goal with this is to create a true conciege service model for your clients.
8. ADVANCED PLANNING FOR LONG TERM CARE EXPENSES
Author Stranix and Matthew M(2023) state that planning for long term care is a best practice for financial planning but in addition to long term care insurance there are other methods for planning . Apart from insurance their is another method that is non insurance based planning opportunities . Non insurance based long term care funding strategies can often be emtionally taxing for both the individual in need of care and any immediate family who is assisting with providing care . A nonqualified investment portfolio falls in the middle of the pretax-to-roth taxation spectrum . If the nonqualified portfolio has been effeciently managed along the way and there are not large , embedded capital gains , the nonqualified portfolio has been can often be liquidated and distributed in large chunks to pay for care with only a minor tax impact,assuming capital gains rates will maintain their preferential status compared to ordinary income .Maxing out their Health saving account on a annual basis may seem to be more of a chore than true saving vehicle but the triple tax advantage of the HSA could provide the ultimate long term care care funding vehicle.Most HSA available in the market place today allow participants to invest their contributions so long so a minimum cash balance is maintained in the account, usually $1000 or $5000 . The extended time horizon of investing should ideally yield similar results to the individual’s retirement portfolio , leveraging the power pf compounding returns in the market .
9.SEVEN WAYS NEW ADVISERS CAN FINE-TUNE THEIR SKILLS POSITION THEMSELVES FOR SUCCESS
Author Terpstra and Kristen(2023) state the seven ways for new financial planner to improve their skills for the success .First tips is to work with lead planner for growth and creating development plan.Second tips is to know and understand more about your client it will help to handle your client better.Ask lead planner or adviser to arrange walking meeting by this you can ask follow up questions and can have discussion with your client.Observe how your lead adviser manage the relationship between them and client this will help to improve understanding of the firm’s culture with client.As a planner it’s critical to be aware of those strategic goals and role in achieving them understanding it will help you to contribute to the overarching firm goals.
10.EXAMINING THE CONVENTIONAL WISDOM OF MUNICIPAL BOND INVESTMENTS AND USE IN FINANCIAL PLANNING
Author Todd ELT (2023)state that conventional financial planning wisdom surrounding municipal bonds suggests that as income increases, so should the likelihood of municipal bond investment .Due to lower default rates .Thus conventional wisdom would also suggest that willingness to take financial risk decreases, the likelihood of municipal bond investment should increase.Municipal bonds are a more niche investment , their use should increase with use of a financial or other adviser.In 2019 survey of consumer finances examines that conventinal wisdom empirically and other aspects of municipal bond investment ,including the associations between such ownership and professional investment advice. This helps to find that municipal bond investment is positively associated with interest and dividend income, net worth ,objective financial knowledge and the use of a financial planner .It also find that municipal bond investment is negatively associated with willingness to take financial risk.
CONCLUSION:
To conclude all the summary of financial planning we can say that a decade of research of financial planning from 2011 to 2021 state that The journal research relied heavily on secondary data, most of which camefrom historical returns and hypothetical data from simulations.Contributions relied heavilyon regression analysis .A considerable number of articles did not use any statistical approach .Qualitative research was absent.At the time of COVID-19 CARES act that is Coronavirus Aid, Relief, and Economic security Act 2020 and the subsequent paycheck protection program and health care Enchancement Act in the the U.S. was introduced . Federal student loans owned by the U.S. Department of eduction loans , Federal Direct Loans and Federal perkins loans payment and interest accrual through September 30,2020 are automatically suspended.Approximately $350 billion of the CARES Act was dedicated to preventing layoffs and business closures while workers must stay home during outbreak . It also state empowering women in Financial planning , emphasizing the increasing role woman play in shaping the financial landscape.In the past societandal norms often dictated that men were the primary earners , while women took on the responsibility of stretching those funds to meet the family’s expenses until the next paycheck arrived .Economics downturns such as recessions or depressions,would amplify financial scarcity for families .It focuses how pursuring pPh.D in Financial Planning comes with challenges Doctor of philosophy in personal financial planning , examining its transformative impact in individuals research capabilities , contributions to financial planning thoery and practice and eductional roles in shaping future planners The commitment required to pursue a ph.D in Financial Planning ; the scarcity of ph.D graduates in personal financial planning is multifaceted issue with several challenges .First is the substantial gap in earning potential between practitioners and acadamicians is a stark reality .The Ph.D program is also intensive and expensive , so financial planners practicing and pursuing this educational path have significant hurdles to overcome without commensurate financial rewards.What happens after completion of financial plan that what happen after the initial financial plan is complete, how financial plan is implemented . implementation . Their is in total three 3 approach . Do-it-yourself , Done with you and Done for you. planning for long term care is a best practice for financial planning but in addition to long term care insurance there are other methods for planning . Apart from insurance their is another method that is non insurance based planning opportunities . Non insurance based long term care funding strategies can often be emtionally taxing for both the individual in need of care and any immediate family who is assisting with providing care . A nonqualified investment portfolio falls in the middle of the pretax-to-roth taxation spectrum . It also state seven ways for new financial planner to improve their skills for the success .First tips is to work with lead planner for growth and creating development plan.Second tips is to know and understand more about your client it will help to handle your client better.Ask lead planner or adviser to arrange walking meeting by this you can ask follow up questions and can have discussion with your client.Observe how your lead adviser manage the relationship between them and client this will help to improve understanding of the firm’s culture with client.As a planner it’s critical to be aware of those strategic goals and role in achieving them understanding it will help you to contribute to the overarching firm goals and also that conventional financial planning wisdom surrounding municipal bonds suggests that as income increases, so should the likelihood of municipal bond investment .Due to lower default rates .Thus conventional wisdom would also suggest that willingness to take financial risk decreases, the likelihood of municipal bond investment should increase.Municipal bonds are a more niche investment , their use should increase with use of a financial or other adviser. This helps to find that municipal bond investment is positively associated with interest and dividend income, net worth ,objective financial knowledge and the use of a financial planner .It also find that municipal bond investment is negatively associated with willingness to take financial risk.
References:
1. ANDERSON, J. et al. A Decade of Research in the Journal of Financial Planning (2011-2021). Journal of Financial Planning, [s. l.], n. 9, p. 70–81, 2022. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=962286f3-897b-3cdc-9fc3-37290b6294cb. Acesso em: 25 fev. 2024.
2. BELLETSKY, M. R.; ANSTETT, C.; TEITELBAUM, M. A. Life and Financial Planning in the Time of COVID-19. Journal of Financial Service Professionals, [s. l.], v. 74, n. 4, p. 41–53, 2020. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=d74912b0-f359-3341-a35d-cf52cb9102ee. Acesso em: 25 fev. 2024.
3. KLONTZ, B. T. Untangling Behavioral Finance and the Psychology of Financial Planning. Journal of Financial Planning, [s. l.], v. 36, n. 1, p. 40–45, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=7070364e-e4a2-3daa-873d-f81cd5465c86. Acesso em: 25 fev. 2024.
4. 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: 25 fev. 2024.
5. 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: 25 fev. 2024.
6. RAGLE, W. F.; SCHLOEMER, P. G. Financial Planning Considerations for Americans Working Abroad. Journal of Financial Service Professionals, [s. l.], v. 72, n. 6, p. 106–112, 2018. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=038160ca-0e2a-336d-b913-1beb2fa6bd65. Acesso em: 25 fev. 2024.
7.SPILLER, C. What Happens After the Initial Financial Plan Is Complete? Planners must manage client expectations as they move into the implementation phase. Journal of Financial Planning, [s. l.], n. 9, p. 52–55, 2022. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=c186f760-e5e8-3c0b-a56e-9f09c2ed4da5. Acesso em: 25 fev. 2024.
8. 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: 25 fev. 2024.
9. TERPSTRA, K. Seven Ways New Advisers Can Fine-Tune Their Skills to Position Themselves for Success: A career in financial planning can follow many paths. Proactive planners will be ready to act on opportunities as they present themselves. Journal of Financial Planning, [s. l.], v. 36, n. 4, p. 26–29, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=3d6d50cc-2dd0-3a94-afce-bf5a711b0140. Acesso em: 25 fev. 2024.
10. TODD, T. M.; HECKMAN, S.; MACDONALD, M. Examining the Conventional Wisdom of Municipal Bond Investments and Use in Financial Planning. Journal of Financial Planning, [s. l.], n. 10, p. 66–82, 2023. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=5609b628-21bd-309c-b803-c9b107bba733. Acesso em: 25 fev. 2024.