1.What is financial planning?

Financial planning is a process that determines how you can best meet your life (Personal as well as Professional) goals, through the proper management of your financial affairs. It is this unique integration of knowledge and skills across a broad range of topics that distinguishes professional financial planning from other related financial advice

Financial planning is simple mathematics. There are 3 major components:

• Financial Resources (FR)
• Financial Tools (FT)
• Financial Goals (FG)

When you want to maximize your existing financial resources by using various financial tools to achieve your financial goals, that is financial planning. Using these steps one can work out where he is now, what he may need in the future and what he must do to reach his goals.

2. Who is a Financial Planner?

Financial planner is an expert who can help individuals achieve their goals and aspirations of life by managing the finances of the people within the constraints that they have.

For example: a person who is in mid fifties will have a requirement in coming 10 year for

• Marriage of his daughter/son
• Study expenses for his son/daughter in Post Graduate Education
• Other needs

Now this person may be a government employee, a private sector employee or a businessman. All may have the same needs but their capacity to generate the cash flows is different and also the risk taking capacity is also different.

Here the role of the financial planner becomes critical as he needs to take all these factors in to consideration and provide a solution to the individual.

Protecting Oneself & Family against Financial Risks
The loss of a job, a serious illness, a legal problem, a sudden death, an accident or a natural disaster will prompt seeking a financial advice. Financial planning will help in analyzing ones insurance needs (disability and long-term care) in relation to ones overall financial circumstances and goals. Moreover, in addition to all these uncertain risks, all investments have certain risks as well, such as market risk, inflation risk, interest rate risk & reinvestment risk. Financial Planning helps in reducing and managing all these risks. Prevention is better than cure so its better to start planning.

3. What does a Financial Planner do?

A Financial Planner determines his client's short, medium and long-term aspirations, then develops and applies the plan that has been agreed upon. Together the Financial Planner and the client will review the plan at least once a year and revise it if the need arises.
All practicing members of Financial Planning Standards Board use a six-step process to help them and their clients take overall view at where they are and where they want to be financially.

Using this process financial planner can help their clients work out what needs to be done and where they want to be financially

• Establishing and defining the client-planner relationship
• Gathering client data, including goals
• Analyzing and evaluating the client's financial status
• Developing and presenting financial planning recommendations and/or alternatives
• Implementing the financial planning recommendations
• Monitoring the financial planning recommendations

Financial Planner can offer general wealth-creation advice and assistance across all financial markets or specialize in areas such as

• Retirement Planning
• Superannuation
• Estate Planning
• Small Business Financial Management and planning
• Trusts
• Tax
• Stock broking and investments
• Debt and risk management

4. Why does one need to be a Financial Planner?

The best Financial Planners have two vital skills - people skills and analytical skills. If you have good counseling skills and are driven by a genuine desire to help other people, Financial Planning offers a good career option. You need to fulfill a mandatory requirement of being a graduate in any subject and three years' work experience in financialby the time you pass all the examinations.
Financial Planners also need ability to take a 'big picture' approach to their clients' finances.
The ability to synthesize information is a part of the Financial Planner's analytical skills.
Though a candidate with any background can strive for the CFP^CM Certification, and worldwide a wide variety of Professionals have become very successful CFPCM Certificants, it has been noticed that candidates with a background in the following mentioned areas get a better chance to become a successful Financial Planners:

• Counseling
• Accountancy
• Law
• Insurance
• Investments
• Finance
• Taxation

5. Why are professional Financial Planners' required?

Planning of personal Finance requires specialized skills, knowledge and experience in areas like accounting, budgeting, investments (equity, debt, mutual funds, insurance, commodities and real estate), taxation etc.

• The scope of the above mentioned fields is so vast that some Financial Planners choose to advice their clients only whit a single area (e.g. investing in stocks or managing tax issues).
• When managed professionally the Financial Planning process can yield tremendous benefits to individuals.
• Professional Financial Planning has emerged as one of the most attractive avenues in India and abroad.
• In India, Wealth management' has emerged as a lucrative career option, yet there is an acute shortage of well-trained and certified professionals.
• This has opened up the attractive career opportunities for CFP^CM Professionals.

6. What are the benefits of CFP^CM Certification?

The CFPCM Certification is the most recognized financial planning certification in the world. CFPCM Certification is based on independently established standards designed to benefit the public. Most people are now responsible for their own financial future and are looking towards professional advisors for assistance. The public is often confused about how to select a professional financial planner and is looking for an advisor who has demonstrated a commitment to high standards of competency and ethical behavior that exceeds the minimum stipulated by legislation.

7. What is Financial Planning Standards Board India?

FPSB India is a non-profit organization dedicated to benefiting the public by leading the development of the Financial Planning profession in India.
It sets, enforces and promotes the highest competency and ethical standards in Financial Planning as defined by individuals who have earned the CFP^CM credential. FPSB India grants the use of the CFP^CM marks (CFP^CM, CERTIFIED FINANCIAL PLANNERCM, CFP^CM flame logo) to individuals who meet its standards.

8. Will the CFP^CM Certification completed in India be recognized worldwide?

The 'CERTIFIED FINANCIAL PLANNERCM' Certification is the highest professional certification in the financial planning profession. It is an international certification and well recognized in most developed countries around the world including countries like U.S.A, Canada, Australia, United Kingdom, Germany, and France etc. In order to provide financial advisory services, a CFP^CM Certification is a must in these countries. However, to practice, one will have to go through country specific supplementary examination for country specific recognition.

9. What is the best age to start financial planning?

While it is true that the younger you start the more beneficial the process will be, financial planning is worthwhile at any age. Although younger people may have more decisions to make regarding their financial lives, changing laws and circumstances can lead middle-aged people and seniors to have to adjust their financial plans as well. Changes in tax law, for example, may require many people to revise it certain investments or estate plans, and adequate disability planning becomes more important with age.

10. Is there an entrance test for Joining CFP^CM Certification?

For CFP^CM Certification there is no entrance test, minimum qualification for join a CFP^CM Certification is 10+2.

11. Who should do a CFP^CM Certification?

Ideally speaking, this course is meant for everyone, whether a finance person or not. As we all earn money and we need to plan to spend and invest in future. And basic knowledge of the above mentioned is required skill set for all of us. However, as a profession, it's quite synergetic, for all the undergraduates, graduates, and post graduates in any stream, as well as for working professional.

12. How do I register for the CFP^CM Certification?

One needs to first register as a student of FPSB India. He then needs to get registered with FPSB India's authorized Education Provider. Indian School Of Busimess And Finance is an authorized Education Provider with FPSB India.

13. What is the format of the examination?

All the examinations will be objective, consist of multiple choice type questions. The examination for each module will be of 2 hours duration. Only the last module exam is of 4 hours.

14. How does the CFP^CM Certification Examination compare to other professional exams?

The CFPCM Certification Examination is a rigorous professional exam that tests both knowledge and application. Currently, the exam are all multiple-choice. They are comprehensive and tests knowledge of facts.

15. How much time should I plan to study for the exam?

The exam will demand a great deal of time and effort. We recommend about 250-300 hours of study time for good exam preparation. Attending our live instructional review will reduce that time to around 200 hours. Note: Time required can vary based on your expertise and experience in each area.

16. How many questions will there be in each module?

There will be 75 questions in each module

17. What are the minimum passing marks?

A candidate who scores 60% or more (Mod- 1 to 4) & 50% or more (Mod-5) will pass the examination. The exam is conducted online and consists no negative marking. Marks are not declared to the students but grades are given through score cards based on the performance.

18. Why is work experience a requirement for getting the CFP^CM Certification?

Three years of relevant work experience is mandatory under the international CFPCM Certification system. The main purpose of FPSB India is to create high-quality Financial Planners so that they can provide the best advice to their clients. In order to deliver value, one needs to complement theoretical knowledge with practical knowledge. This is what we provide here at ISBF. The work experience can be gathered before, during or after the course. If the three-years of work experience is gathered before or during the course, the Student will be conferred the CFPCM Certification immediately on passing the Certification Examination, i.e., the exam for Module VI - Advanced Financial Planning.

19. How do I know what is 'relevant' work experience?

Qualifying work experience in Financial Sector is based on a 35-hour workweek and is defined as full-time (or equivalent part-time) personal Financial Planning services/ related employment or self-employment. In the performance of their job, candidates must have actively used the knowledge, skills and abilities required for the CFP^CM Certification (for a listing of topics, please refer to the Syllabus) and the experience gained should help the candidate in the application of the personal Financial Planning process to meet client needs. This Experience can be gained in the following areas provided it meets the conditions listed above.

• Accounting
• Banking
• Consulting
• Estate Planning
• Financial Planning/Advisory
• Stock broking/Investment advisory
• Taxation
• Journalism in Personal Finance
• Law
• Insurance
• Retirement/Pension Planning/Employee Benefit
• Portfolio/Investment Management
• Teaching at a post-secondary level
• Wealth Management
• Corporate candidates are Candidates who are employed with Banks, AMC, Insurance, Financial Services, Broking Firm, Equity Research, Credit Rating, Taxation, Financial Consultancy etc. Self Employed candidates are Candidates who are working as insurance agent, stock broker, financial consultant, mutual fund distributor, income tax consultant etc.

20. Who employs Financial Planners?

A CFP^CM Professional having been through a rigorous education and experience process is geared to boost client's confidence and satisfaction. Financial Planners often choose to establish their own financial planning practice either by themselves or together with other planners. Others work for:

• Banks
• Financial planning organizations
• Life insurance companies
• Accounting or law firms
• Stocks and securities brokers
• Fund managers
• Credit counseling organizations

21. What could I expect to earn and how are Planners paid?

Financial Planning is one of the most lucrative job profiles in the west and the US. The Financial planners are one of the most highly paid individual professional s in the developed economies. The financial planner can earn in a variety of ways depending upon the way he/she provides his/her services. Some of the ways in which the Financial Planners earn are as follows:

• In terms of Salary if they are employed by any financial institution/Bank etc..
• Consultation fee,if the Financial Planner is working as a freelance consultant. The fee may be charged from the client based on an hourly rate, a flat rate per plan, a percentage of the value of the client's assets and / or income or a combination of these methods.
• Commissions from investment or insurance companies for selling their financial products.
• A combination of fees and commissions can also be a source of revenue

22. How difficult is the course of CFP^CM Certification Compared to MBA Course?

CFP^CM Certification is altogether a different from a MBA Program. In MBA program major emphasis is on the different aspects of the Capital Market and other financial aspects which are quite broader in nature, but in CFP^CM Certification is all about 360 degree approach of financial planning for ultimately reaching ones financial goals

23. Is there any other program similar to CFP^CM Certification available in India?

No, CFP^CM Certification is a unique program and there is no course closure to or look alike to CFP^CM Certification. The international recognition of this certification and acceptance by so many banks and institutions make it all the more unique.

24. What are the differences between CFP^CM Certification and CFA?

Holders of the CFA designation are securities analysts, money managers and investment advisors who focus predominantly on the analysis of investments and securities of particular companies or industry groups. The 'big picture' approach is what sets the Financial Planner apart. The CFP^CM Certification is a broad based and comprehensive education program for Financial Advisors. The Financial Planner uses the financial planning process to help a client determine not only whether he/she can meet their life goals but also the means to achieve them. The big picture view addresses a host of inter- related issues such as budgeting, tax planning, investments and risk management, or by focusing on a limited number of financial concerns within the context of the client's overall situation

25. What is the difference between CA, CS, ICWA and CFP^CM Certification?

CA's, ICWA's specialize in handling the accounts, bookkeeping and audit of firms and corporate while the CS's deal with the secretarial matters relating to a corporate. A CFP^CM Certificants deals with the financial planning of an individual. Nevertheless, a Financial Planner is like a family physician who works closely with his clients and his sole concern is creation of wealth for the client through proper tax planning and adequate protection of the client's interest so that his client's life goals are achieved .

• If you are interested in being part of a profession that helps people gain control over their lives and their futures; if you are a big picture thinker and a good listener; and if you are looking for a career filled with opportunities and challenges - then choosing to become a CERTIFIED FINANCIAL PLANNERâ„¢ practitioner is the career for you.
• Whether you are already a financial planner or have recently decided to enter in the profession, going towards the extra step and obtaining CFPCM certification will identify you as a true professional in one of the fastest growing and exciting careers today.