What Are the Job Duties of a Financial Planner?

Hiring a financial planner is the most important money management decision you make. Every day people enlist the services of financial planners to help them chart a course to retirement, help with investment questions, and provide some guidance for big expenses, such as a child's college education or a home purchase. Taking a closer look at the job duties of financial planners underscores their significance for your economic health.

Identification

The are two kinds of financial planners: those who are certified, and those who are not. Job duties of a certified financial planner are narrowly defined by the Certified Financial Planner Board of Standards (see resources below). Non-certified financial planners have more freedom to take on other tasks, depending on a client's requests or needs.

Benefits

Consumers benefit from hiring a financial planner because the professional provides them with a clearly defined financial goal-setting opportunity. With the help of the planner, the client discusses goals, considers the financial steps that must be taken to reach them, and also learns about tax ramifications.

Goal

Financial planners help their clients make good decisions with regard to their personal finances. In some cases this requires a financial planner to explain intricate terms and sometimes complicated concepts in an easy to understand manner. Overall, financial planners work toward their clients' financial security.

Financial Planners and Tax Planning

Tax planning is one of the job duties financial planners perform. They do not prepare tax returns, but instead help clients maximize tax deductions to reduce year-end tax liabilities. In some cases this also includes estate planning.

Financial Planners and Investment Planning

Helping clients with their investment planning is one of the most critical aspects of a financial planner's job. This includes helping the client to define goals the investments are to make possible, such as a college education for a child, retirement or to grow personal wealth.

Process

Financial planners meet with clients at least once a year. During this appointment, the client brings current financial statements and also year end bills to the office and the financial planner will prepare a report on the client's fiscal situation. These figures are compared to last year's numbers and in some cases may lead to a changing or tweaking of the goals the client set. The financial planner asks about any projected changes in the client's personal life that could have a bearing on his finances.

Result

After the appointment, it is the financial planner's duty to analyze the data received from the client and then prepare a report. The planner sends this report to the client with professional recommendations in the areas discussed during the appointment.

Resources

• Learn about the Certified Financial Planner Board of Standards at the CFP.net site.