The planner might have a specialty in investments, taxes, retirement, and/or estate planning. Further, the financial planner may hold various licenses or designations, such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Financial Consultant (ChFC), or Certified Investment Management Analyst (CIMA), among others. To obtain each of these licensures, the financial planner must complete a different set of education, examination, and work history requirements.
Hitting 50. In the early stages of a family's life, your biggest asset is your ability to earn income, which your family needs for both immediate and long-term goals, says Jeremy Torgerson, chief executive officer at nVest Advisors near Denver. "Life insurance is obviously very important at this stage, as is disability, since we are far more likely to be injured and unable to work than to die prematurely," he says. "People need more life insurance than they think when they're young and just starting families, so this is usually my recommendation." However, as people get older, their insurance needs change from needing protection against premature death to protection against costs for care, Torgerson says. "When I have clients in their late 40s through about 60, we often talk about long-term care insurance needs, especially for the wives," he adds. "The last statistic I heard from an LTC insurance carrier was that we will spend the last four years of our lives, on average, needing some sort of care to help us with activities of daily living. You'll need to prepare for that."
Increasingly, international business schools are incorporating the subject into their course outlines and some have formulated the title of 'Investment Management' or 'Asset Management' conferred as specialist bachelor's degrees (e.g. Cass Business School, London). For those with aspirations to become an investment manager, further education may be needed beyond a bachelors in business, finance, or economics. Designations, such as the Chartered Investment Manager (CIM) in Canada, are required for practitioners in the investment management industry. A graduate degree or an investment qualification such as the Chartered Financial Analyst designation (CFA) may help in having a career in investment management. There is evidence that any particular qualification enhances the most desirable characteristic of an investment manager, that is the ability to select investments that result in an above average (risk weighted) long-term performance.
Typically, financial planners earn their living either from commissions or by charging hourly or flat rates for their services. A commission is a fee paid whenever someone buys or sells a stock or other investment. For reasons we’ll explain later, you may want to avoid financial planners who rely on commissions for their income. These advisers may not be the most unbiased source of advice if they profit from steering you into particular products.
Investment management (or financial management) is the professional asset management of various securities (shares, bonds, and other securities) and other assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).
This is a broad term for a professional who helps manage your money. You pay the advisor, and in exchange, they help with any number of money-related tasks. A financial advisor might help manage investments, broker the sale and purchase of stocks and funds, or create a comprehensive estate and tax plan. If the advisor is working with the public, they must hold a Series 65 license. In addition to that license, there are many other financial advisor credentials the advisor might hold, depending upon the services that are provided.