How is it different from CFP (the Chartered Financial Planner)?
CFP is 'managed' by FPAM (Financial Planning Association of Malaysia) and you have to registered as their member to carry the title CFP.
This post is not going to compare and differentiate CFP vs RFP because for me, both qualification has no different as I don't intend to "venture" to overseas with the title.
So, what is Financial Planning?
When people heard about FP (financial planning or financial planner), first thing in their mind is "SELL INSURANCE" or "INSURANCE AGENT"....
Financial Planning is not a 'regulated' word so many people simply use it to differentiate themselve from traditional 'insurance agent' to the extend public presume financial planning / financial planner as insurance agent and do not see the value beyond that.
On the other hand, the word "FINANCIAL ADVISER" is actually a regulated phrase currently abused by the player in the industry, hopefully the authority take some action to prevent it become 'equivalent' of 'insurance agent', a problem that could be too severe too late to rectify.The market (general population) really need more awareness about managing their finance in a better way. Public needs more qualified financial advisers to guide them to do better in managing financial affairs.
The world is no longer the same as our parents time.... there are so many different financial products and services available to help us to achieve 'financial goals', either effectively or in a cost-effective manner.
Therefore, I decided to move a level up to become an independent financial adviser (licensed by Bank Negara Malaysia) and enable me to serve my clients (and future clients) better and professionally.
In short, an independent financial adviser will able to draft a comprehensive financial plan for their client, comprises at least the following
- Cashflow analysis
- Statement of Net-Worth
- Key ratio analysis
- Setting up financial goals, usually including
- Retirement fund
- Education fund
- Trust fund
- Debt management
- Risk management
- Estate planning
Based on the comprehensive financial plan, the adviser will be able to help the client to manage their financial affairs better than not having it drafted.
A comprehensive financial plan is not only for the rich and famous. If you have someone able to assist to draft for FREE, don't wait, go for it. If you have to pay a fee for it, you should see the value of having one and then you will be happy to pay.