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I know that accountants work with numbers, spending all their time pouring through reams of data to determine if a company is profitable (or not), or to see if some purchase decision makes sense for the company. They read numbers like the way we read newspapers. I always thought that it was a boring job but now that I see they have work and others don’t I’m beginning to wonder if maybe I should do that myself.

Now what exactly do Financial Planners do for a living ? I thought that they would help people to plan their personal finances, but lately from what I’ve been reading it seems as if they spend all their time on the phones, pulling out numbers from a phone book at random and trying sell carpet cleaning or mutual funds to anyone who will listen. Is this true, is that the typical work a Financial Planner does: HE PUSHES sales onto others? I remember about 15 years ago as a student I tried to work for a carpet cleaning company for 3 days, finding random numbers in a phone book and then calling up customers asking if they would be interested in buying carpet cleaning services. I hated that job and promised NEVER to do anything like that again — EVER !!! So is what a Financial Planner does similar to a sales-pushing job also?

Please tell me what you know about it? Thanks.

Financial planners DO help people with their personal finances, but you can’t just hang out a shingle and expect people to walk in. It doesn’t work like McDonalds. You have to go FIND your clients. cold calling is one method of doing that. There are other ways too, but marketing is a huge part of the job until you have an established clientele.
Some companies will hire financial planners to work at corporate HQ, but they aren’t jobs that are easy to come by. They don’t pay nearly as well, but you also don’t have to market or sell.

im way behind and am being slammed with all this work 🙁 PLEASE HELP
1. Describe at least three specific individual differences that may give you an advantage in the workplace. (1-3 sentences. 1.5 points)
2. Choose an industry you might be interested in working in, and explain why this industry interests you. (2-4 sentences. 1.0 points)
3. Describe at least two methods you would use to identify job opportunities if you were looking for a job. Explain why you would use these methods. (2-4 sentences. 1.0 points)
4. Choose a career from the following list: financial planner, financial analyst, accountant, risk manager, cash manager, treasurer, CFO, and comptroller. Use the Internet to find information about this career, and answer the questions below. TIP: The U.S. Occupational Outlook Handbook (http://www.bls.gov/oco/) may be a good source for this information.
a. What is the name of this career? (0.5 points)
b. Describe at least two tasks a person with this career might perform. (1-2 sentences. 1.0 points)
c. What level of education is this career likely to require? (0.5 points)
5. Choose another career from the following list: financial planner, financial analyst, accountant, risk manager, cash manager, treasurer, CFO, and comptroller. Use the Internet to find information about this career, and answer the questions below. TIP: The U.S. Occupational Outlook Handbook (http://www.bls.gov/oco/) may be a good source for this information.
a. What is the name of the career you chose? (0.5 points)
b. Describe at least two tasks a person with this career might perform. (1-2 sentences. 1.0 points)
c. What level of education is this career likely to require? (0.5 points)
6. Choose another career that you are interested in. This does not need to be a career in the finance industry. Use the Internet to find information about this career, and answer the questions below.
a. What is the name of the career you chose? (0.5 points)
b. Describe at least two tasks a person with this career might perform. (1-2 sentences. 1.0 points)
c. What level of education is this career likely to require? (0.5 points)
d. Why does this career interest you? (1-3 sentences. 2.0 points)
7. Choose another career that you are interested in. This does not need to be a career in the finance industry. Use the Internet to find information about this career, and answer the questions below.
a. What is the name of the career you chose? (0.5 points)
b. Describe at least two tasks a person with this career might perform. (1-2 sentences. 1.0 points)
c. What level of education is this career likely to require? (0.5 points)
d. Why does this career interest you? (1-3 sentences. 2.0 points)
8. If you were in charge of managing a group of employees, how would you assess their job performance? Describe at least two methods you would use. (2-4 sentences. 2.0 points)
9. Describe a time when you or someone you know conformed to the behavior of others. Why do you think this person chose to conform? (2-4 sentences. 1.0 points)
10. Describe a time when you or someone you know chose not to conform to the behavior of others. Why do you think this person chose not to conform? (2-4 sentences. 1.0 points)
11. Describe a time when you have worked with a group of people, such as with students for a school project, with coworkers at a job, or with family members to complete a chore. Describe the dynamics of the group, and then describe at least one way the group dynamics could have been improved. (3-6 sentences. 3.0 points)
12. Describe a real or made up but realistic example of a misunderstanding that occurred because of unclear written or verbal communication. How could this misunderstanding have been avoided? (3-6 sentences. 2.5 points)

I’m just getting off work after a 10 hour day. Now I have to go pick my sister up from dialysis – then go home and make supper. May have to do a load of laundry. Walk and feed the dog.

But if I have a minute – because apparently only you are the one being slammed – I’ll work on it for you.

The following is from

http://www.usnews.com/money/personal-finance/retirement/articles/2008/06/19/should-you-pay-off-your-mortgage-before-you-retire.html

"The interest you pay on your home mortgage is tax deductible on up to $1 million in debt. You can also typically write off interest on up to $100,000 of home-equity debt. But you benefit from this tax perk only if all your itemized tax deductions, including your mortgage interest, add up to more than the standard deduction that almost everyone gets automatically….. Jonathan Pond, a financial planner and author of Grow Your Money! 101 Easy Tips to Plan, Save, and Invest, argues that you need to be in the 35 percent tax bracket, or make at least $350,000 annually, for the tax break to be worthwhile. Most Americans in the 25 percent tax bracket might pay, say, $10,000 in mortgage interest but save only $2,500 in taxes."

If I pay $10,000 in mortgage interst but only save $2,500, that seems nonsmart to me. Is the above quote correct?

How much would you have in itemized deductions if you could not deduct your home mortgage interest and property tax? Subtract that from the standard deduction for your filing status. If you take standard deduction, you can consider that a freebie because you get not tax benefit from mortgage interest or property tax on that amount on that amount. If, for example–and I’m just making up the numbers here–you are married and the standard deduction is $11,400 for 2009, your mortgage interest is $10,000, property taxes are $2,500 and your other itemize deductions total $3,900 for a total of $16,400, your tax savings will be your marginal rate times $5,000. Unless you give a huge amount to charity, it would probably be a smart move to pay off the mortgage if you can.

What is your least favorite personal finance task? Is it creating and maintaining a budget, paying bills, analyzing your monthly spending, managing your health care expenses, keeping your financial documents organized, balancing your checkbook, or something else?

Which (if any) of these tasks would you consider outsourcing to a financial professional if you had the opportunity?

I generally love personal finance tasks, so this is like "what is your least favorite ice cream?" Here are my least favorites:

1. Budgeting – I don’t do it, my savings are automatically deducted and I spend the rest (I usually do have a lot left over, though).

2. Portfolio choices – Seeing those negative signs on your investments is tough.

I wouldn’t outsource anything to a financial planner; I know more about finances than most, though.

in this video i’ll be explaining how my financial planner 1.0 works and how to use it to save and organize your income.

to download: http://sites.google.com/site/alhazzaaa/FinancialPlanner1.0.zip

The package contains two types of this software: 1- Mobile version: to be used on mobile phones to organize your daily expenses. 2- Computer version: which is designed to organize your weekly budget on monthly basis.

Contact me for any support matters.

Duration : 0:3:33

Read more…

Do you know of any good places where I can learn about managing personal finance etc

Thanks x

I used to work for a 501c3 Debt Management Company.

My favorite resources :
http://www.womens-finance.com/worksheets.shtml
These are all worksheets you can print out and manage daily, weekly and/or monthly.
The menu at the left of the page is fantastic.
Don’t be put off that it is a ‘womens’ website. 😉

Also anything Suze Orman. I love her books. They have great financial tips. Everything from better budgeting, paying off debts to tips on how cleaning your house (closets, junk drawers) could save you a lot of money.
http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD002a&SRCN=catalogthumbnail&GnavID=10&SnavID=45

Also, Jeremy Vohwinkle, a financial planner that has several
articles on About.com writes some great ‘must reads’ and ‘how to’s’.
http://financialplan.about.com/od/budgetingyourmoney/ht/createbudget.htm

Hope these help your efforts!

Do-it-yourself or get help? This question, a dilemma for many, will occur early and often during the course of your financial life. As your personal finances become more complex, you will inevitably need help from an investment professional. The following tips will help you make an informed selection:

• Determine your personal finance objectives and think about the services that will meet these objectives. For example, are you saving for retirement, protecting against risk, preparing your estate, or putting money aside for the education of your children? These are just a few of the potential questions that will help determine the financial services you are seeking. Financial services fit into an array of disciplines, including financial planning, estate planning, retirement planning and preparation, tax planning, investment management, college financing and planning, and insurance. Investment professionals may specialize in one discipline or offer services in several areas. Don’t worry if you can’t think of a complete list of financial services to meet your needs, because, after all, this one important reason for getting help.
• Ask trusted sources like friends and relatives for the names of investment professionals. Keep in mind that everyone’s financial situation is unique, so what is good for your neighbor, may not be good for you.
• Don’t use titles or generic terms to make your selection. According to the Financial Industry Regulatory Authority (“FINRA”), the largest non-governmental regulator for all securities firms doing business in the United States, titles like Financial Adviser or Financial Planner can be used by investment professionals that may not “hold any specific designation.”
• Understand professional designations. The list of designations continues to grow, with each one representing something different. FINRA lists almost 100 designations. There are requirements for each designation, so when an adviser lists a credential, ask questions about the meaning of the designation and where to go to verify the designation. For example, to verify the credentials of a purported Certified Financial Planner, visit the Certified Financial Planner Board of Standard’s search page and enter the name of the professional. To understand the meaning of a designation, do a Google keyword web search using the designation title. For example, Google keyword search “CFA” links to the CFA Institute, the organization offering the Chartered Financial Analyst designation.
• Conduct face-to-face interviews with prospective investment professionals. FINRA suggests the following questions: “areas of specialization, professional designations, registrations or licenses, education, work history, investment experience, products and services, and disciplinary history.” Be sure to ask about compensation, which may be hourly, a flat annual fee, commission based, percentage of assets managed, or a combination of commissions and fees. Ask if the professional or their firm receives additional compensation for selling particular investment products. Finally, in the case of a professional offering investment products, ask if their firm is a member of the Securities Investor Protection Corporation (“SIPC”). According to FINRA, “the SIPC provides limited customer protection if a firm becomes insolvent.”
• Verify state and federal regulatory registrations of the investment professional and their firm. Ask the prospective professional if they and their firm are registered at the state, federal, or at both the state and federal level and the actual name of these regulatory authorities. Once you have the name of the regulatory authorities, visit them online or call to verify registration. Many investment professionals and their firms are registered by FINRA, so a great place to start is FINRA’s BrokerCheck, “a free online tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers.” In addition, FINRA provides links to state regulatory authorities.
• Ask for references. Going the extra mile and checking references is worth the effort when considering that you may be entering into a lifelong relationship with the selected investment professional.
• Make sure the services being offered fit your unique needs and situation. Every investment professional should tailor a solution unique to you and your situation. Beware of professionals offering “one-size-fits-all” services.

Ultimately, selecting an investment professional is your responsibility, so whether you choose to do-it-yourself, or partner with one or many investment professionals, you control your financial destiny.

Moneysmartz Editor

Do-it-yourself or get help? This question, a dilemma for many, will occur early and often during the course of your financial life. As your personal finances become more complex, you will inevitably need help from an investment professional. The following tips will help you make an informed selection:

• Determine your personal finance objectives and think about the services that will meet these objectives. For example, are you saving for retirement, protecting against risk, preparing your estate, or putting money aside for the education of your children? These are just a few of the potential questions that will help determine the financial services you are seeking. Financial services fit into an array of disciplines, including financial planning, estate planning, retirement planning and preparation, tax planning, investment management, college financing and planning, and insurance. Investment professionals may specialize in one discipline or offer services in several areas. Don’t worry if you can’t think of a complete list of financial services to meet your needs, because, after all, this one important reason for getting help.
• Ask trusted sources like friends and relatives for the names of investment professionals. Keep in mind that everyone’s financial situation is unique, so what is good for your neighbor, may not be good for you.
• Don’t use titles or generic terms to make your selection. According to the Financial Industry Regulatory Authority (“FINRA”), the largest non-governmental regulator for all securities firms doing business in the United States, titles like Financial Adviser or Financial Planner can be used by investment professionals that may not “hold any specific designation.”
• Understand professional designations. The list of designations continues to grow, with each one representing something different. FINRA lists almost 100 designations. There are requirements for each designation, so when an adviser lists a credential, ask questions about the meaning of the designation and where to go to verify the designation. For example, to verify the credentials of a purported Certified Financial Planner, visit the Certified Financial Planner Board of Standard’s search page and enter the name of the professional. To understand the meaning of a designation, do a Google keyword web search using the designation title. For example, Google keyword search “CFA” links to the CFA Institute, the organization offering the Chartered Financial Analyst designation.
• Conduct face-to-face interviews with prospective investment professionals. FINRA suggests the following questions: “areas of specialization, professional designations, registrations or licenses, education, work history, investment experience, products and services, and disciplinary history.” Be sure to ask about compensation, which may be hourly, a flat annual fee, commission based, percentage of assets managed, or a combination of commissions and fees. Ask if the professional or their firm receives additional compensation for selling particular investment products. Finally, in the case of a professional offering investment products, ask if their firm is a member of the Securities Investor Protection Corporation (“SIPC”). According to FINRA, “the SIPC provides limited customer protection if a firm becomes insolvent.”
• Verify state and federal regulatory registrations of the investment professional and their firm. Ask the prospective professional if they and their firm are registered at the state, federal, or at both the state and federal level and the actual name of these regulatory authorities. Once you have the name of the regulatory authorities, visit them online or call to verify registration. Many investment professionals and their firms are registered by FINRA, so a great place to start is FINRA’s BrokerCheck, “a free online tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers.” In addition, FINRA provides links to state regulatory authorities.
• Ask for references. Going the extra mile and checking references is worth the effort when considering that you may be entering into a lifelong relationship with the selected investment professional.
• Make sure the services being offered fit your unique needs and situation. Every investment professional should tailor a solution unique to you and your situation. Beware of professionals offering “one-size-fits-all” services.

Ultimately, selecting an investment professional is your responsibility, so whether you choose to do-it-yourself, or partner with one or many investment professionals, you control your financial destiny.

Moneysmartz Editor

Dave Ramseys general advice to work hard, make your marriage a priority and avoid debt is excellent. In fact, any one who religiously followed Daves suggestions would have experienced far less trouble in the recent financial crisis. In far, some people probably side-stepped the whole mess by applying Ramseys ideas.

Nevertheless, in a handful of specific areas, one can find some minor yet important faults with the financial planning advice that Ramsey gives–and in particular with the financial calculations Dave shares in, for example, his books.

Overly Optimistic Rate of Return Assumption

One of the first problems that appear to certified public accountants and chartered financial analysts looking at Ramseys materials concerns the commonly quoted “12%” rate of return used in examples.

Thats way too optimistic an assumption. Yes, some years investments do generate 12%. And some specialty categories of investments (like small company stocks) may return roughly 12% over lengthy periods of time. But a traditional portfolio of diversified stocks and bonds will probably over long financial planning horizons deliver average annual returns of more like 7%-9%.

You will not, sadly, find it possible to consistently earn 12% on a well-diversified, moderate-risk investment portfolio. No way.

Inflation Ignored Only Leads to Future Disappointments

Inflation represents another issue that an accountant or good financial planner will want to include in financial plans but an issue that isnt always thoroughly discussed by Dave. Inflation can be tricky to incorporate. But inflation will probably eat away at the value of the savings you accumulate.

If youre earning 9% on your investments, for example, but inflation runs 3%, youre not really making 9%. Youre making 6%. You can more implicitly recognize inflation in your financial planning calculations, by the way, by using the net-of-inflation return in your financial calculations. To adjust for inflation when you expect a 9% return and 3% inflation, make the computations with a 6% return.

Expense Ratios Matter

One final investment issue (for some investors) needs to be highlighted. While investment expense ratios often dont matter much for people just starting to save money–probably this is Ramseys typical reader in fairness–by the time one accumulates a more size-able investment nest egg, investment costs matter. And they matter a whole lot.

In fact, if an investment pays a 2% expense ratio–and that sort of expense might be pretty normal once all the investment costs are tallied–that amount doesnt sound so bad. But its pretty outrageous in most circumstances.

Consider the situation, for example, where youve got a 9% rate of return from an investment but suffer from a 3% inflation rate. In actuality, youre really only earning 6% on your money. (The inflation thats baked into the return is not really profit to you.)

If out of your net 6% investment return, you pay 2% in investment fees–in other words, if you pay out 2/6ths of your profit for investment expenses–thats equivalent to a 33% income tax. Ouch.

In the end–just to play this sad song to the very end–while you start with 9%, after you subtract 3% inflation and 2% in investment fees–youre left with only 4%. And note that value is a pre-tax return. So if you pay income taxes on your investment profits (and you probably will eventually), youll actually end up with something less than 4%. Double ouch.

Putting These Financial Planning Insights Together

The nit-picking shared in the preceding paragraphs may seem a little unfair. But to illustrate how significant the mistakes become when combined, ponder the following scenarios:

If you and your spouse save $5,000 a year into a retirement fund for 30 years and say youll earn 12% annually, the calculated future value equals roughly $1,200,000.

Note: If you know Microsoft Excel, you can copy this formula into a workbook to double-check the statement: =FV(0.12,30,-5000)

In comparison, if you and your spouse save the same $5,000 a year in an IRA or 401(k) plan for 30 years but admit (sheepishly) that youll really only earn 4% once you adjust for inflation and that friendly financial advisor, the calculated future value equals roughly $280,000.

Note: Again, if you have access to a personal computer and Microsoft Excel, you can copy this formula into a spreadsheet cell to test my math: =FV(0.04,30,-5000)

Your personal money management is the key to your financial success; your method of reaching your goals and dreams. No one likes the term budgeting, but without it, you wont know if you are getting the most from your income. Everyone wants to pay all their bills on time. Successful debt and asset management is a source of pride and of good credit. All of us want good credit whether we use it or not. Unless you have unlimited funds to spend however you wish, you will need a personal budget to pay off debts. Budgeting your money can be a difficult process.

In order to create a household budget, you must include all your monthly and yearly bills. You must also include your spending money, savings goals, and retirement funding. It doesnt matter how much money you make; its how you spend it. A personal or household budget will help you make payments on time, provided you follow the plan.

When you dont follow a debt management program, your debt may overtake your income and then you are forced to make late payments on bills or no payments at all because you dont have the money. You cant just spend money and hope you have enough for your bills. You must spend within a budget.

You can prepare a budget by using budgeting software on your computer. The program will ask you the same questions that a personal finance advisor asks during a financial planning interview. The questions concern your expenses, your spending habits, and retirement goals. They may include tips on debt consolidation and reasonable cash flow. Or you can choose a financial planner to help you with your personal finance concerns.