As I was continuing my Certified Financial Planning™ coursework to satisfy the CFP® education requirement, I came across an investing statistic I found interesting (and a bit concerning). Per Gallup’s annual Economic and Personal Finance survey, only 54% of U.S. adults report having money invested in stocks in some form (directly or through a fund). This figure was higher before the 2008 financial crisis – 62% – but that still seems low. For folks considering whether to enter financial planning (or financial coaching), this appears to be yet another data point showing that there is room for improvement.
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Financial Planning Articles (December 29, 2018)
“Financial Planning Articles” is a collection of articles and research that I’ve been reading regarding financial planning. *** What I’m Reading: Planning Profession Robo Advisor Wealthfront Makes Automated Financial Planning Free (Anne Tergesen, The Wall Street Journal) “Among other things, Wealthfront’s financial planning service can tell clients how much they should save, how much they can afford to spend on a home, and how much to save for a child to attend college, using projections of future costs for specific U.S. schools along with estimates of the family’s financial aid. The service also assesses the impact of each financial decision on a client’s retirement plans.” Advisor Shortage? What Advisor Shortage? (Charles Paikert,…
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Industry Insights: Employment Outlook for Financial Advisors
“Industry Insights” covers trends in the financial planning industry. *** As has been the case for several years now, the outlook for financial advisors appears rather favorable. According to the Occupational Outlook Handbook: “Employment of personal financial advisors is projected to grow 15 percent from 2016 to 2026, much faster than the average for all occupations…Job prospects for personal financial advisors should be relatively favorable, compared with prospects in other financial sector occupations. Those who obtain certification will likely have the best prospects.” Of course, the thought has been that robo-advisors will take some jobs. The OOH continues: “The emergence of “robo-advisors,” computer programs that provide automated investment advice based…
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Financial Planning Articles (December 7, 2018)
“Financial Planning Articles” is a collection of articles and research that I’ve been reading regarding financial planning. *** What I’m Reading: Personal/Career Development Transitioning Part-Time Into Financial Planning As A Career Changer (Michael Kitces, Kitces.com) “I consequently often get this question, “Can I transition into being a financial advisor on a part-time basis as a career-changer?” For which I have to admit, I think the answer largely is no.” How To Email Someone You Haven’t Talked To In Forever (Rebecca Zucker, Harvard Business Review) “However, over the years, we often lose touch with people in our network as work, family, and other demands fill our limited time. As if reaching out to…
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Factors That Impact Credit Scores
Will opening a new line of credit help or hurt one’s credit score? How much of available credit should be utilized? Will credit inquiries negatively affect one’s score? There seems to be a lot of confusion around credit scores, as a recent Transunion survey suggests: 43% of consumers believe checking their credit score has the same effect as when a lender checks it and 44% of consumers believe marital status is factored. As such, let’s clarify the factors that actually affect FICO credit scores. Each of the following percentages represent how important each category is in generating a credit score: 35% payment history. 30% amounts owed. 15% length of credit…
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Traditional Financial Advisor Training Programs
Industry experts recommend getting with a firm committed to offering comprehensive financial planning and in positions where you don’t have to go out and immediately attract clients. However, expanding your search to include these traditional, broker-dealer firms will, of course, increase the odds of getting your start in the industry. These firms have historically been more transactions-based, rather than providing ongoing, comprehensive financial planning services. Links to a few of these programs with program details and FAQ pages: Merrill Lynch “Our Our Financial Advisor Development Program (FADP) is designed to develop the critical skills and knowledge necessary for building a successful wealth management business—acquiring clients, enhancing relationships, providing tailored strategies and more.…
