6 / 14
FPSU
®
Study Guide
Chapter 1: Financial Planning Process
To be used in conjunction with the money back guaranteed
Online FPSU
®
Exam Preparation Tools
available at
www.seewhylearning.com
SeeWhy Financial Learning
5
The financial planner is often referred to as the “quarterback” of a team of professionals.
Rarely is the financial planner qualified to act in all of the above-mentioned areas.
Instead, he will give advice in areas where he is qualified to act while also working with
other professionals to assist the client in other areas where he is not qualified to act.
For example, an accountant may hold himself out as a financial planner but know very
little about investments. In this case, an investment professional will be brought in to
handle the investment part of the plan.
Note:
A financial planner is only authorized to act in a capacity in which he is qualified
(which often means holding a specific credential or license). For all other areas he
must act as a generalist or coordinator by working with other professionals.
These specialists include:
•
Lawyers
•
Accountants
•
Investment Advisors
•
Insurance Agents
•
Etc.
The Emerging Trends in the Industry
The role of financial planners is changing because Canada and Canadian families are
changing too!
•
Rising costs
•
Lower savings/Higher debt
o
Due to higher taxes and stagnant incomes.
•
The realities of retirement
o
The average life span is lengthening, so we are likely to spend more time in
retirement.
o
It is estimated that 70% to 75% of pre-retirement income is needed to
continue a comparable lifestyle during retirement.