What is a Personal Financial Specialist?
Personal Financial Specialist or PFS is the title granted to those employees who specialize in financial planning and advisory. This title is given to only Certified Practising Accountants CPA in the US with expertise in financial planning, tax planning, estate planning, investment and risk management.
For a CPA to earn the PFS certification, that person needs to have already practiced in the field of finance for a required amount of time, sit for a test in this field and fulfill the other prerequisites such as continuing education with respect to the profession. A PFS engages the client in all aspects of personal finance for the purpose of assisting them in accomplishing their financial objectives.
This designation serves to provide the clients of the Assessor assurance that their financial advisors possess extensive professional knowledge on the areas of accounting as well as financial planning, and that all assessments are done within professional ethical standards.
How does Personal Financial Specialist work?
Personal Financial Specialist (PFS) is a financial advisory and planning professional designation that involves provision of all round financial planning as well as customizing advisory services for the specific requirements of the clients. Here’s how a PFS typically operates:
Client Needs Assessment: PFS takes into consideration the client’s income, expenses, assets, liabilities, insurance, taxation and investments so as to understand the client’s financial status within the scope of the required objectives.
Goal Setting: In collaboration with the client, the PFS defines the time-bound financial objectives like retirement savings, home purchasing, children’s education, and devise estate management plans.
Financial Plan Development: Working with the assessed client and established objectives, the PFS develops a more specific financial strategy. This strategy can include budgeting, saving, investing, retirement planning, tax strategies, risk analysis, and mitigation as well estate planning.
Implementation: After the PFS and the client come to a consensus regarding the financial plan, the PFS helps the client in putting the plan into action. This may require creating investment accounts, changing the pattern of withholding taxes, purchasing suitable insurance covers or contributions to pension schemes.
Monitoring and Adjusting: The PFS does not sit idle but actively monitors the client’s financial situation and the level of implementation of the strategies. This led to schedule periodic interactions with the client in order to update the plan based on changes in the client’s situations or the stock market.
Learning and Teaching: In a continuous process, a PFS renders education to the client making him comprehend the intricacies of finance to enable him to take decisions. They also guide their clients in very important life events, such as marriage, having children, change of jobs or retirement.
Legal and Professional Conduct: Due to the ethics held by a PFS, the recommendation made is always in the best interests of the client and this means that small things like taking care of ones privacy and {Mikulak 2007) avoiding unnecessary controversies is required. This includes keeping client information private, avoiding any undesirable activities that would compromise the PFS, and compliance with the appropriate financial regulations.
Because of focusing on the whole situation, a PFS assists his/her client to achieve financial independence and security as well as calmness.
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