close
Financial literacy

Financial Literacy: Lack of Money Management Education in High Schools

Tim Ranzetta’s financial education started when he was in elementary school, but it didn’t happen in any classroom. Instead, he learned about money on snowy days. While other children slept or logged in The price is right, Ranzetta would wrap herself in her warmest winter clothes and pull out a shovel from her garage. Then he went door to door, selling his snow removal services to neighbors.

“For me, a snowstorm was not a holiday,” he says. “It was a business opportunity. “

In the decades that followed, Ranzetta’s businesses grew more ambitious, from driving a shredder truck to consulting to building startups. He felt that early exposure to even informal financial education helped him navigate his way into adulthood. So in 2010, he volunteered to teach a personal finance class at a high school near his home in Palo Alto, California. But when he searched for lesson plans online, the information seemed not to have been updated since he cleaned up his neighbors’ driveways in the 1970s. “What kid is going to care,” he said. Does he remember thinking, “About the balance of a checkbook? “

In fact, financial education had stagnated for much of Ranzetta’s life. If you are a little skeptical of TikTok, if you had to google the definition of “cheugy” or if you still use the cry and laugh emoji (😂) on a daily basis, in other words, if you’re in your 30s, you probably did. don’t take financial education classes in high school. Before 2000, only four states required students to take one to graduate. Which means you probably didn’t learn budgeting, taxes, or credit in a high school class.

“I was very lucky,” said Ranzetta, who founded and helps run Next Generation Personal Finance, a non-profit organization that provides free financial education for students and teachers. “My father was a banker. He taught me money. My parents were from the middle class. But for too many kids today, financial literacy is a real issue. Our mission is to make sure that every student across the country is guaranteed a one-semester personal finance course in their public school.


Source link

read more
Financial literacy

DoorDash Announces GoalUp Financial Empowerment Program to Promote Financial Literacy

By Mariah Ray, Head of Strategic Partnerships and Innovation Policy

DoorDash is committed to empowering local economies and the people who drive them. By working to help our communities leverage their income and build generational wealth, we are proud to announce the launch of the Aim up Financial empowerment program with our trusted partner, the National Urban League. The 91 physical Urban League branches in 36 states and the District of Columbia have historically reached their two million customers through in-person services. COVID-19 and the resulting financial challenges have underscored both the underlying need for these services and the need to make them available online.

Recognizing the need to extend the reach of these services and deliver virtual offerings, DoorDash and the Urban League have collaborated to develop GoalUp as the first-ever digital platform delivering NUL’s proven financial education offerings in a accessible and mobile-friendly online format. Today’s launch marks a major programmatic step in the multi-year partnership between the two organizations, announced as part of DoorDash’s five-year, $ 200 million program Strong engagement of the main street.

“The dramatic changes in our society and economy over the past year have underscored the urgent need not only to expand economic opportunities in underserved communities, but also to make the tools necessary for this expansion available online.” , said National Urban League President and CEO Marc H. Morial. “Not only do we need to reimagine working in a re-emerging America, but we also need to prepare our children and our workforce to engage in an increasingly digital world. GoalUp is an ideal response to rise to the challenge. these two critical challenges. We are proud to partner with DoorDash on this innovative and forward-thinking initiative. ”

Through GoalUp.org, Dashers, and Urban League clients can attend free multimedia courses that cover topics such as building credit, creating a budget, growing savings, and applying for mortgage and finance. education. Additional topics will be added over the next few months, incorporating the Urban League’s proven workforce development and entrepreneurship program. After successfully completing an online course, users can obtain electronic certificates to strengthen their resumes.

DoorDash Members Dasher Community Council (DCC) and Voices of Dashers of Color Council (VDC) were invited to experience GoalUp as part of a six-week pilot program.

” Lessons [offered] through the Financial Empowerment Program have been invaluable to me and my family. The budgeting course in particular helped me a lot. After taking the course, I sat down and made a budget to spend more wisely! I have a young daughter and I’m excited to share these life skills with her, whether it’s budgeting or saving for retirement, ”said Tanya Ludwig, DCC member and pilot course participant.

Earlier this year, DoorDash CEO Tony Xu contributed to the NUL annual conference State of Black America Report and underscored DoorDash’s commitment to revenue opportunities that empower members of under-represented communities. Being able to quickly access flexible income opportunities is invaluable in being able to overcome financial challenges and save for a more secure financial future. Our four year old partnership with the National Urban League aims to help people from underserved communities learn new job skills and succeed in business, and build generational wealth through financial literacy training, education funding, employment programs and more.

Disclaimer

DoorDash Inc. published this content on September 29, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 29, 2021 02:11:08 PM UTC.


Source link

read more
Financial literacy

Square One aims to make an impact with financial literacy curriculum

Dollars and common sense

By Mark Morris

From left to right: Dawn DiStefano, Melissa Blissett and Kristine Allard of Square One; and Flavia McCaughey, Flavia Cote and Peter Cote of FP Investment Group.

Given the extent of Square One’s work for children and families, it’s not uncommon for the organization to receive contributions to support its efforts.

But recently, FR Investment Group offered a donation that goes far beyond writing a check.

“Instead of donating money, we chose to do something harder,” said Peter Côté, president of FP Investment Group. “We donate our time and our services to help Square One’s customers and staff improve their financial literacy. “

Dawn DiStefano, executive director of Square One, had seen similar attempts at financial education fail, despite good intentions. This last proposition was different.

“The FR group wanted to understand who we are and what we want for our customers and our staff,” she said. “They were curious, curious and showed us that they also value our expertise.”

The Empower Financial Literacy program is now a monthly offering at Square One. Flavia Cote, Executive Vice President of FR Investment and wife of Peter, hosts the session each month with FR staff, including her daughter, Flavia McCaughey, Vice President of FR.

McCaughey introduced his parents to the idea that working with lower income families to help them understand the basics of finance could have a huge impact on those families – and also on the community as a whole. The Côtes supported the idea but also offered wise advice.

“My parents told me to be prepared that maybe only one person shows up for the meeting,” McCaughey said. “I discussed this possibility with the team and we decided that if the program made a difference in the life of one person, it was worth it.

Instead, 14 people signed up for the program, eight or nine of whom regularly attend the monthly sessions.

“Given that we are still struggling with COVID and everyone has a busy life, I am excited about 14 registrations,” DiStefano said. “The program will be there when they are ready. It’s not a one-and-done thing.

“Instead of donating money, we chose to do something harder.

Far from there. Peter has committed his company to managing the financial literacy program for the next 30 to 50 years.

“This is how long it will take to make a real change in the financial well-being of our community,” he said. “You have to be on the ground and make a long-term commitment.

Change the story

This type of commitment is needed to break what DiStefano has called a self-fulfilling prophecy of bad results.

“Those who grew up in a family where they worried about how they would eat and get to school often end up creating the same unstable environment for themselves when they are adults,” he said. she declared. “They aren’t surprised when they lose an apartment or they don’t care about their credit rating because they feel like they couldn’t buy a car anyway.

Just like saving, tough situations also have a way of getting worse and bigger. DiStefano gave the example of a person who lost their job, and in order to receive housing assistance, they had to be behind on their rent, which would then negatively affect their credit rating. “This is what people are dealing with,” she said.

Melissa Blissett, vice president of family support services at Square One, asks people what’s stopping them from living better lives and uses a tool called a family goal plan to help them.

Flavia McCaughey leads a financial literacy session at Square One.

Flavia McCaughey leads a financial literacy session at Square One.

“The people of FR speak the same language that we use with our families, and we both use the SMART Goals approach,” said Blissett. SMART, a popular goal-setting technique, is an acronym for Specific, Measurable, Achievable, Relevant, and Timely.

Flavia Cote said her team encourages people to set a goal such as buying a reliable car, and FR staff break it down into the actions needed to ultimately achieve the goal.

“We encourage people to try and save at least $ 10 a month,” she said. “Even though they can’t save $ 10 next month, they started to think about saving. “

To avoid being overwhelmed by an important goal, Peter suggests taking it step by step. “I don’t want people to think about years in the years ahead – just think about the next 24 hours. When you reduce it to 24 hours, you help people see an achievable goal.

In their monthly sessions, FR staff help people work out the numbers and, more importantly, understand the emotions that come with managing finances.

“If someone can’t save for a month, we encourage them to set a goal for next month,” said Flavia. “We want to bring hope and make finance simple enough for people to achieve some kind of financial independence.”

Like dedicated savings, positive actions can also have a cumulative effect. Recently, a class action lawsuit involving overdraft fees at a regional bank resulted in a multi-million dollar settlement. After all claimants received their share, there was $ 23,000 left. This final amount is usually donated to a non-profit program in accordance with the central theme of the case and is known as “cypress”, a French expression meaning “as close as possible”.

Plaintiff’s lawyer Angela Edwards heard about the Square One program from Flavia Cote and thought it sounded perfect. “I recommended the cypress for Square One, the defense attorney agreed and the judge approved it.”

Make progress

Peter Cote sees his main job not as a financier, but as a champion for others. “We are dealing with people who have various financial problems and we are their champions in letting them know that everything will be fine. “

When people attend the sessions at Square One, Flavia said, they show that they are ready to move on with their lives. “We are trying to help people understand that their situation is not permanent and that there is a way to change it.”

While a term like financial literacy might sound academic, Peter came up with a few different terms that might better describe the course.

“You could call it financial wellness or life 101,” he said. “Maybe we need to understand 101.”


Source link

read more
Financial literacy

Financial literacy education received a boost during pandemic: OJK

We also organize educational activities on social networks such as Instagram, Twitter, etc. This is to make it more massive so that it can reach more people.

Jakarta (ANTARA) – Activities aimed at strengthening financial literacy have increased during the COVID-19 pandemic, with the number of such activities reaching a thousand in the first half of 2021, an official said.

“Because the activities took place virtually, participants were able to reach many of them in one day,” Tirta Segara, member of the Authority’s Council of Commissioners for Education and Consumer Protection, said on Tuesday. of financial services (OJK).

Meanwhile, if financial education was carried out on site, moving from one place to another would be difficult, and thus, only one or two activities would be possible in a day, he said.

Financial literacy education activities continued to be carried out amid the pandemic so that the goal of 90% financial inclusion can be reached by 2024, he said.

Besides being more effective, online financial education can also reach a wider community, he explained.

In the first half of 2021, OJK created up to 295 pieces of financial education content for the community, he added.

Related News: Helping Increase Digital Financial Literacy, Inclusion in Villages: OJK

Currently, OJK is completing a learning management system module which can then be independently viewed on OJK servers by people who want to learn more about finance, Segara informed.

However, OJK still finds it difficult to conduct online financial literacy activities in areas that lack uninterrupted internet services, he said.

Not everyone can afford online training, he noted.

“So this has to be facilitated in a group, for example, by using a cell phone that can be used together to listen to the module,” he said.

During the COVID-19 pandemic, OJK also continued to ask the Financial Services Institution (LJK) to educate the community around its offices at least once a year.

LJK, who has been unable to carry out his face-to-face educational activities due to the COVID-19 pandemic, can do so virtually, he said.

“We are also carrying out educational activities on social networks such as Instagram, Twitter, etc. This is to make it more massive so that it can reach more people,” he said.

Related News: Investor Confidence in Capital Markets Rises 96%: OJK


Source link

read more
Financial literacy

NIBAF promotes girls’ education, financial literacy

The International Rescue Committee (IRC) and the National Institute of Banking & Finance (NIBAF) – an affiliate of the State Bank of Pakistan (SBP) – organized an event called “Empowering Girls Through Financial Literacy” to promote the education and financial literacy for girls and to celebrate their shared achievements. The event in Islamabad was well attended by government officials as well as representatives of development and international organizations.

The collaboration between NIBAF and IRC enables 7,000 women to acquire financial and basic literacy. The occasion was attended by NFLPY / TEACH graduates and their families who had completed the financial literacy course. SBP Deputy Governor Sima Kamil presented certificates to Balochistani women in town.

The speaker, Ms. Sima Kamil, thanked the NFLP-Y and IRC for helping girls in the most remote areas of Balochistan get a two-month financial literacy training course by addressing the crowd. Rather than because she is a woman, a woman should have equal access to the same opportunities as any other citizen of this country.

She further explained to him that we should focus on the need for financial literacy as a right for our young people, especially girls. According to her, this is in line with Pakistani beliefs as well as those of the country’s founding fathers.

British Prime Minister Theresa May announced in May 2021 the launch of the Girls’ Education Action Plan, one of its pillars of which is to stimulate country-led action to get more girls into school and ensure their safety and learning. When the COVID-19 pandemic broke, he lamented that many girls were still out of school, which is why the UK launched the TEACH Girls Education Challenge program.

Asked about the progress made with the NFLP-Y, he replied that it made him very happy. Addressing the crowd, IRC Country Director Mr. Zain Ul Abedin said this education effort provides students with culturally relevant educational programming.

It should be noted that the National Youth Financial Literacy Program (NFLP-Y) is implemented by NIBAF under the leadership of SBP to provide Pakistani youth and schoolchildren with essential financial education so that they can improve their money management skills and gain a better understanding of financial matters.

The program started in five regions of Pakistan and has already grown to more than 50. Since its inception in 2018, the program has educated more than 830,000 Pakistani adolescents about personal finance.



Source link

read more
Financial plan

What is a financial plan?

A financial plan is at the heart of the financial advice process. It is in a way the card of your customers …

A financial plan is at the heart of the financial advice process. In a way, it’s your customers’ money map, there to guide them financially from where they are today to where they want to be. Without a plan, investors are just paddling the open sea, hoping their direction and speed will be enough to get them to their destination.

Given the importance of the financial plan in the planning process, advisers and clients need to understand what a financial plan is and the key elements that make it a good one.

[SUBSCRIBE: Get the weekly U.S. News newsletter for financial advisors. ]

What is a financial plan?

A financial plan is a document that takes a holistic look at a client’s entire financial situation and shows how to achieve their financial goals, says Dan Keady, chief financial planning strategist at TIAA in Charlotte, Carolina. North. It will integrate the “needs, wants and wishes of your client, while taking into account her level of comfort in the face of risk”.

Financial plans are typically created using financial planning software and can integrate many facets of planning. For example, the retirement plan element often includes an analysis showing the impacts of taking money from different accounts, qualified and unqualified, on income and a comparison of the tax implications of each scenario, says Kelly Campbell, planner. chartered financier and president and CEO of Campbell Wealth Management in Alexandria, Virginia.

“Many plans will also look at the required rate of return a person needs to meet their goals,” Campbell said. “It can give someone a good indication of how to invest their portfolio.”

[READ: 10 Best Financial Certifications]

Create a financial plan

A financial plan requires the right elements to reach its full potential. To create a good financial plan, be sure to include the following:

A statement of net worth or a detailed cash flow analysis. Financial planning begins with understanding your client’s current finances. “This may mean that a plan needs to include, among other things, a net worth statement or a detailed cash flow analysis to understand how funds come and go,” says Martin Schamis, manager of wealth planning at Janney Montgomery. Scott in Philadelphia.

Your client’s assets and liabilities. A good financial planning strategy includes documenting all investable assets that can be used to meet a client’s goals as well as detailed liabilities and current and planned expenses, says Tammy McKennon, financial advisor at Edward Jones at Newport Beach, California.

A strategy for achieving short and long term goals. “Most plans only think about retirement and the future, but a good financial plan thinks about your life goals from present to future,” says Aditi Javeri Gokhale, Chief Commercial Officer and President of Products and Services at investment at Northwestern Mutual in Milwaukee. “Too often, consumers see financial planning as something that sets the stage for the future, which is abstract. Financial planning should also include how people can live their dreams today, whether it’s buying a new car, planning a family vacation, or financing school fees, all while getting ready. long-term goals like retirement.

Hypothetical simulations and risk assessment. The challenge of connecting the dots on your client’s financial roadmap is that a lot can happen between today and tomorrow. “This is where what-if scenarios, Monte Carlo simulations, risk assessments and other common tools come in,” says Schamis. By running these simulations, you can test a financial plan to determine its chances of success.

Use conservative assumptions. “I always ask clients to project their anticipated spending, and then we use conservative assumptions about their asset growth to document a very realistic expectation of results,” McKennon explains. “We are adding additional layers of ROI sequencing, which gives additional confidence to our results. “

A holistic review of your client’s finances. During the entire financial planning process, you will often find other aspects of your client’s finances that need to be considered, says Greg Wells, regional director and partner at EP Wealth Advisors in Torrance, Calif. This can include checking to see if your client is saving enough and performing a tax analysis to ensure that what is set aside is being saved in the most tax efficient way. You may need to review the estate plan to ensure that future wishes will also be taken into account.

“A financial plan should help people protect themselves and prosper,” says Javeri. “In other words, both protecting what someone has with insurance while increasing wealth through investments.”

After all of this, a financial plan may seem like a purely analytical endeavor, but financial planning isn’t all about numbers, says Daniel Crosby, director of behavior at Atlanta-based Orion Advisor Solutions.

“A good financial plan relies on a thorough understanding of a person’s psychology and includes choosing sufficiently motivating goals, achieving those goals over time, anticipating behavioral barriers to success, and creating contingencies. when life doesn’t go as planned, ”Crosby says. “Even the best-designed financial plan will encounter obstacles along the way, and at that point an understanding of investor psychology becomes essential.”

[Read: Private Wealth Manager vs. Financial Planner]

How to make a financial plan

Financial planning begins with active listening and often ask deep questions to really understand what matters to your customer, says Javeri. “Financial plans cannot take a one-size-fits-all approach. During the conversation, it is important to identify the life goals that are most important to the client, so that a financial roadmap can be designed to achieve them.

You can follow these steps to create a personalized financial plan:

1. Get to know your customers : Getting to know your customers is critically important when creating the financial plan, says Keady. “A client’s family, culture, environment and career will help the advisor navigate the client’s views and relationship with financial planning. “

2. Ask questions to understand your customers and their goals: Keady tells advisers to ask about estimated retirement age, pay down debt, college funding goals, or plans to leave a legacy. You should be as thorough and detailed as possible when gathering information. “It’s often cumbersome, and most customers say we’re asking for more information than anyone has ever asked,” Wells explains. “But the more data we have, the better the output we can provide. “

3. Use a form to collect information about the customer: Keady recommends having a form to help you collect all of this information as well as your client’s financial data, such as risk tolerance, income, estimated expenses, insurance policies, and bank and investment account statements.

4. Be systematic in your data collection: Despite the highly human element of financial planning, collecting data as part of creating a plan should be done systematically, Campbell says. “Ad hoc planning is not very useful for the client or the advisor. Having a systematic planning process usually uses certain software packages, and the process is usually streamlined.

5. Communicate how you create the plan with the client: After you have gathered the necessary data, you can create the financial plan. “Make sure you understand and communicate all of the Monte Carlo assumptions and results,” says Wells. “Keep the details in place for future reviews and comparison plans. “

6. Provide the final plan with a list of actions to accomplish: “Tracking what action to take is also very important to ensure that the plan is followed and continues to move forward on track in the future,” says Wells.

Tracking is essential, because the financial plan is just the start of your client’s financial journey – and it might not be an easy journey, even with that plan in place.

“With the current level of financial fragility that we are seeing, clients are unlikely to be able to meet all of their financial goals,” says Keady. “The best advisor will be able to examine when a client fails (and, more importantly, explain to a client the steps they can take to move on a successful financial path.”

More American News

6 pros and cons of choosing a paid financial advisor

14 things to know before becoming a financial advisor

15 Marketing Tips For Financial Advisors

What is a financial plan? originally appeared on usnews.com

Update 9/23/21: This story was posted at an earlier date and has been updated with new information.


Source link

read more
Finance agency

MEDIA ADVISORY: District of Columbia housing finance agency cuts ribbon on The … | Your money

Washington, DC, September 23, 2021 (GLOBE NEWSWIRE) –

WHO:

Christopher E. Donald, Executive Director / CEO, District of Columbia Housing Finance AgencyPolly Donaldson, Director, District of Columbia Department of Housing & Community DevelopmentTrayon White, Councilmember, Ward 8 Anita Bonds, Councilmember at Large, Council of the District of Columbia Harvey Yancey, Managing Member, H2DesignBuildSonja Wells, Executive Vice President and Director of Loans City First Broadway Melissa Lee, Senior Vice President of Capital and Investments, Menkiti Group and Wife of Todd A. LeeKori Heyward, Owner of Douglass

WHAT:

DCHFA will cut the ribbon on its third fully completed Housing Investment Platform (HIP) project. The Douglass: A Townhouse Community by Todd A. Lee. The Douglass consists of eight townhouses reserved for residents who earn labor income (between 60 and 120 percent of the median income in the area). H2DesignBuild, the developer of the project, has also successfully delivered two other HIP projects, Elvans Road Townhomes (Ward 8) and Cynthia Townhomes (Ward 7). DCHFA established HIP as an innovative investment platform that will increase Agency support to the DC housing market outside of traditional bond and tax credit financing. The Agency joins forces with emerging developers of certified companies to build new communities. These eight townhouses are the first of many of Todd A. Lee’s townhouse communities, a tribute to former DCHFA Executive Director and CEO Todd A. Lee who passed away in early 2020.

OR:

the douglas

2514 West Street Southeast Washington, DC 20020

WHEN:

September 24, 2021

12h00

Attachment

Douglass

Yolanda McCutchen DC Housing Finance Agency 202-777-1650 [email protected] Susan Ortiz DC Housing Finance Agency 202-777-1618 [email protected]

Copyright 2021 GlobeNewswire, Inc.


Source link

read more
Financial plan

What is a financial plan? | Financial advisers

A financial plan is at the heart of the financial advice process. In a way, it’s your customers’ money map, there to guide them financially from where they are today to where they want to be. Without a plan, investors are just paddling the open sea, hoping their direction and speed will be enough to get them to their destination.

RELATED CONTENT

Given the importance of the financial plan in the planning process, advisors and clients need to understand what a financial plan is and the key elements that make it a good one.

What is a financial plan?

A financial plan is a document that takes a holistic look at a client’s entire financial situation and shows how to achieve their financial goals, says Dan Keady, chief financial planning strategist at TIAA in Charlotte, Carolina. North. It will integrate the “needs, wants and wishes of your client, while taking into account her level of comfort in the face of risk”.

Financial plans are typically created using financial planning software and can incorporate many facets of planning. For example, the retirement plan element often includes an analysis showing the impacts of taking money from different accounts, qualified and unqualified, on income and a comparison of the tax implications of each scenario, says Kelly Campbell, planner. Certified financier and President and CEO of Campbell Wealth Management in Alexandria, Virginia.

“Many plans will also look at the required rate of return a person needs to meet their goals,” Campbell said. “It can give someone a good indication of how to invest their portfolio.”

Create a financial plan

A financial plan requires the right elements to reach its full potential. To create a good financial plan, be sure to include the following:

  • A statement of net worth or a detailed cash flow analysis. Financial planning begins with understanding your client’s current finances. “This may mean that a plan needs to include, among other things, a net worth statement or a detailed cash flow analysis to understand how funds come and go,” says Martin Schamis, manager of wealth planning at Janney Montgomery. Scott in Philadelphia.
  • Your client’s assets and liabilities. A good financial planning strategy includes documenting all investable assets that can be used to meet a client’s goals as well as detailed liabilities and current and planned expenses, says Tammy McKennon, financial advisor at Edward Jones at Newport Beach, California.
  • A strategy for achieving short and long term goals. “Most plans only think about retirement and the future, but a good financial plan thinks about your life goals from present to future,” says Aditi Javeri Gokhale, Chief Commercial Officer and President of Products and Services at investment at Northwestern Mutual in Milwaukee. “Too often consumers see financial planning as something that sets the stage for the future, which is abstract. Financial planning must also include how people can live their dreams today – be it ‘buy a new car, plan a family vacation, or finance school fees – all while preparing for long-term goals like retirement. “
  • Hypothetical simulations and risk assessment. The challenge of connecting the dots on your client’s financial roadmap is that a lot can happen between today and tomorrow. “This is where what-if scenarios, Monte Carlo simulations, risk assessments and other common tools come into play,” says Schamis. By running these simulations, you can test a financial plan to determine its chances of success.
  • Use conservative assumptions. “I always ask clients to project their anticipated spending, and then we use conservative assumptions about their asset growth to document a very realistic expectation of results,” McKennon explains. “We are adding additional layers of ROI sequencing, which gives additional confidence to our results.”
  • A holistic review of your client’s finances. Throughout the financial planning process, you’ll often find other aspects of your client’s finances that need to be considered, says Greg Wells, regional manager and partner at EP Wealth Advisors in Torrance, Calif. This can include checking to see if your client is saving enough and performing a tax analysis to ensure that what is set aside is being saved in the most tax efficient way. You may need to review the estate plan to make sure your future wishes are taken into account as well.

“A financial plan should help people protect themselves and prosper,” says Javeri. “In other words, both protecting what someone has with insurance while growing their wealth through investments.”

After all of this, a financial plan may seem like a purely analytical endeavor, but financial planning isn’t all about numbers, says Daniel Crosby, director of behavior at Atlanta-based Orion Advisor Solutions.

“A good financial plan relies on a thorough understanding of a person’s psychology and includes choosing sufficiently motivating goals, bringing them to life over time, anticipating behavioral barriers to success, and creating contingencies when life is not going as planned. Crosby said. “Even the best-designed financial plan will encounter obstacles along the way, and at that point an understanding of investor psychology becomes essential.”

How to make a financial plan

Financial planning starts with active listening and often asks probing questions to really understand what matters to your client, Javeri explains. “Financial plans cannot take a one-size-fits-all approach. During the conversation, it is important to identify the life goals that are most important to the client, so that a financial roadmap can be designed to achieve them. “

You can follow these steps to create a personalized financial plan:

  1. Get to know your customers : Getting to know your customers is critically important when creating the financial plan, says Keady. “A client’s family, culture, environment and career will help the advisor navigate the client’s views and relationship with financial planning.”
  2. Ask questions to understand your customers and their goals: Keady tells advisers to ask about estimated retirement ages, debt repayment, college funding goals, or plans to leave a legacy. You should be as thorough and detailed as possible when gathering information. “It’s often cumbersome, and most customers say we’re asking for more information than anyone has ever asked,” Wells explains. “But the more data we have, the better the output we can provide.”
  3. Use a form to collect information about the customer: Keady recommends having a form to help you collect all of this information along with your client’s financial data, such as risk tolerance, income, estimated expenses, insurance policies and bank account statements and shift.
  4. Be systematic in your data collection: Despite the highly human element of financial planning, collecting data as part of creating a plan should be done systematically, Campbell says. “One-off planning is not very helpful for the client or the advisor. Having a systematic planning process usually uses some software packages, and the process is usually streamlined.”
  5. Communicate how you create the plan with the client: After you have gathered the necessary data, you can create the financial plan. “Make sure you understand and communicate all of the Monte Carlo assumptions and results,” says Wells. “Keep the details in place for future reviews and plans to compare. “
  6. Provide the final plan with a list of actions to accomplish: “Tracking what action to take is also very important to ensure that the plan is followed and continues to move forward on track in the future,” says Wells.

Tracking is essential, because the financial plan is just the start of your client’s financial journey – and it might not be an easy journey, even with that plan in place.

“With the current level of financial fragility that we are seeing, clients are unlikely to be able to meet all of their financial goals,” Keady said. “The best advisor will be able to examine when a client fails (and, more importantly, explain to a client the steps they can take to move on a successful financial path.”


Source link

read more
Finance agency

UK export finance agency targets net zero emissions by 2050

* Aims to guarantee a capacity of 50 billion stg carbon neutral

* Britain prepares to host global climate talks

* Follows criticism of the state-backed financial sector

By Simon Jessop

LONDON, Sept. 22 (Reuters) – Britain’s export credit agency has announced its goal of achieving net zero carbon emissions in its investments by 2050 and increasing support for green exports.

The UK Export Finance (UKEF) move follows a pledge made in April to end support for fossil fuel projects overseas and before Britain hosts global climate change talks.

It also follows criticism from activists that state-backed groups are not doing enough to revise their loans.

UKEF has a capacity of £ 50 billion to support exports through loans, insurance and guarantees, and has said it will be carbon neutral on a net basis by mid-century, in line with the objectives of the Paris Climate Agreement.

UKEF, which provided £ 12.3 billion in support to UK businesses over the past year, said it plans to increase financial support for renewable energy-related exports and activities focused on l adaptation to the impacts of climate change.

“We must take urgent action to respond to the threat of climate change in order to have a chance to limit global warming,” Louis Taylor, CEO of UKEF, told Reuters, adding: “We are committed to decarbonizing all our operations and our financial portfolio “.

Demand for green trade is expected to be £ 1.8 trillion per year by 2030, generating up to £ 170 billion in export sales of goods and services for Britain by 2030, according to report of the Board of Trade published in August. (Reporting by Simon Jessop; Editing by Alexander Smith)


Source link

read more
Finance agency

UK export finance agency targets net zero emissions by 2050

  • Aims to ensure 50 billion stg carbon neutral capacity
  • Britain prepares to host global climate talks
  • Follows criticism of the state-backed financial sector

LONDON, Sept. 22 (Reuters) – Britain’s export credit agency has announced its goal of achieving net zero carbon emissions in its investments by 2050 and increasing support for green exports.

The UK Export Finance (UKEF) move follows a pledge made in April to end support for fossil fuel projects overseas and before Britain hosts global climate change talks. Read more

It also follows criticism from activists that state-backed groups are not doing enough to revise their loans.

UKEF has a capacity of £ 50 billion to support exports through loans, insurance and guarantees, and has said it will be carbon neutral on a net basis by mid-century, in line with the objectives of the Paris Climate Agreement.

UKEF, which provided £ 12.3 billion in support to UK businesses over the past year, said it plans to increase financial support for renewable energy-related exports and activities focused on l adaptation to the impacts of climate change.

“We must take urgent action to respond to the threat of climate change so that we have a chance to limit global warming,” Louis Taylor, CEO of UKEF, told Reuters, adding: “We are committed to decarbonizing all our operations and our financial portfolio “.

Demand for green trade is expected to be £ 1.8 trillion per year by 2030, generating up to £ 170 billion in export sales of goods and services for Britain by 2030, according to report of the Board of Trade published in August.

Reporting by Simon Jessop; Editing by Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.


Source link

read more
1 2 3 4 5 8
Page 3 of 8