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hotbiz financial planner
Home Based Business Idea
F I N A N C I A L P L A N N E R:
Business Description:
Many people don't think of this "profession" as a home-based business idea, however of the many professional services, this is one that can actually be run quite successfully from your home office. The key here is the word professional. If you have the ability and resources to set up an area where you can be undisturbed and concentrate while maintaining a high degree of professionalism then your home office can be the home base of a thriving financial business.
Financial planning in 2003 and beyond is HOT! For many reasons. Just a few short years ago, it was easy to make money in just about any investment. Most investors felt they were the masters of their decisions and were doing quite well. Those days are gone.
A third of the do-it-yourself investors surveyed by Eaton Vance recently said they'll probably seek the advice of a financial professional within the next year. That's up from 30 percent from 2002 and 22 percent in 2001. Investors today are looking for advisors who can educate them on risk and diversification, including what can happen in a "down" market.
Another reason the industry is hot may be a result of the aging population. Ahh "the baby boomers".
Your job as
a financial planner involves educating, advising and guiding individuals, families and small businesses
as they evaluate their financial health and create, set
and achieve financial goals.
Your
Unique Skills:
In an ideal world, you would like to have experience in accounting,
taxation, finance and business law. While in most states it is not
unlawful to hang your hat as a Financial Planner without a CFP
(Certified Financial Planner) designation, most people will look for a
minimum requirement of the certified CFP credential. You will need to
have completed certain educational and pertinent experience requirements
to become a certified CFP.
To maintain the CFP certification you are also required to take continuing education courses to update your knowledge on products and tax laws. In addition to CFP's , there are PFS's (certified public accountants who are certified as personal financial specialists by the American Institute of Certified Public Accountants) and ChFC's (chartered financial consultants.)
You may also want to become a member of the Financial Planning Association FPA, and/or the NAPFA -National Assoc. of Financial Advisors. These groups screen advisors and your membership means that you have accomplished even higher standards in continuing education.
You
should be ethical, trustworthy, and discreet.
Tools
of the Trade
If you plan on entertaining clients in your home make sure that you have easy
access to a professional work environment. Invest in that leather chair
and mahogany desk that you've been eyeing. A potential client wants to see
that you have garnered some of the fruits of your success. At the same
time a lavish lifestyle may intimidate. You be the judge. Your
office should include references, an online computer, filing system etc.
You may want to invest in an online services for getting up to the minute
investment quotes, sophisticated
financial modeling or investment analysis software.
Show
Me the Money
If you have experience and you open the doors with current contacts and clients
you may be able to bill your time at up to $200,000 a year and
beyond. However, if you are just starting out and you need to invest in
marketing your business, education programs references etc your first year or so
can be quite thin monetarily. If you are good and have a passion for the
business - it will grow. Tend to business and stay consistent and you will
soon reap the rewards.
Getting
Your Foot in The Door:
Join every professional business group you can think of.
Network! Let them know your out there. You will build your client
base by one satisfied customer at a time. They will tell two people and so
on and so on. Create alliances with other professional service providers
such as mortgage bankers, real estate agents, insurance representatives, lawyers
etc. Gather customer testimonials and place them in your professionally
designed brochure.
To Learn More...
"Best Practices for Financial Advisors," by Mary Rowland, introduction
by Michael R. Bloomberg. Irwin Professional Publishing, $40.
"How to Become a Successful Financial Consultant: How to Make a Living
Investing Other People's Money," by Jim H. Ainsworth. John Wiley &
Sons, $24.95.
Organizations:
The International Association For Financial Planning
http://www.iafp.org
Certified Financial Planner Board of Standards
http://www.cfp-board.org
Financial Planning Association - fpanet.org
National Association of Professional Financial Advisors - Napfa.org
Submitted by: admin
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Added: Sun Jul 31 2005
Last Modified: Wed Aug 10 2005
