Financial Planning refers to the use of scientific methods and specific procedures to formulate a practical and operable financial plan for customers, which mainly includes cash planning, consumption expenditure planning, education planning, risk management and insurance planning, tax planning, investment planning, retirement planning, property distribution and inheritance planning.

The purpose of financial planning is to enable customers to continuously improve their quality of life, even when they are old and weak or their income drops sharply, they can maintain their set standard of living. The goal of financial planning has two levels: financial security and financial freedom. Financial planning is a comprehensive process of evaluating the financial needs of individuals or families in all aspects. It is a comprehensive financial service in which professional financial personnel analyze customers' life and financial status by clarifying their financial objectives, so as to help customers formulate feasible financial plans.

Career introduction:

Financial Planner is a professional who provides customers with comprehensive financial planning. According to the National Professional Standard for Financial Planners formulated by the People's Republic of China and the Ministry of Labor and Social Security, a financial planner refers to a person who provides comprehensive financial consulting services for individuals, families, small and medium-sized enterprises and institutions by using the principles, techniques and methods of financial planning. Financial planning requires providing all-round services, so financial planners are required to master all kinds of financial instruments and relevant laws and regulations, provide tailor-made and feasible financial plans for customers, and meet customers' long-term and ever-changing financial needs in the process of continuous revision of the plans.

Work content:

In the practical work of financial planning, the goals of financial security and financial freedom are embodied in eight specific plans: cash planning, consumption expenditure planning, education planning, risk management and insurance planning, tax planning, investment planning, retirement pension planning, and property distribution and inheritance planning, which are concentrated in the following eight aspects:

1. Necessary asset liquidity. Individuals hold cash mainly to meet the needs of daily expenses, emergency prevention and speculative needs. Individuals should ensure that they have enough funds to pay the planned and unplanned expenses, so financial planners should not only ensure the liquidity of customers' funds, but also consider the holding cost of cash, so that short-term needs can be met with cash on hand through cash planning, and the expected cash expenditure can be met through various short-term investment tools.

2. Reasonable consumption expenditure. The primary goal of personal financial management is not to maximize personal value, but to make personal financial situation stable and reasonable. In real life, it is sometimes easier to achieve financial goals by reducing personal expenses than by seeking high investment returns. Through the consumption expenditure planning, the personal consumption expenditure is reasonable and the household income and expenditure structure is generally balanced.

3. Realize educational expectations. Education is the foundation of life. With the changes of the times, people have higher and higher requirements for education. Coupled with the continuous increase in education expenditure, the proportion of education expenditure has become larger and larger. Customers need to plan the education expenses as early as possible, and make reasonable financial plans to ensure that they have the ability to pay their own and their children's education expenses reasonably in the future, so as to fully meet the educational expectations of individuals (families).

4. Complete risk protection. In a person's life, risks are everywhere. Financial planners make appropriate financial arrangements through risk management and insurance planning, so as to minimize the losses caused by accidents, so that customers can better avoid risks and ensure their lives.

5. Reasonable tax payment arrangements. Paying taxes is everyone's legal obligation, but taxpayers often want to minimize their tax burden. In order to achieve this goal, the financial planner makes full use of the preferential and differential treatment provided by the tax law to appropriately reduce or delay the tax burden expenditure by pre-planning and arranging the economic activities such as business, investment and financial management of the taxpayers.

6. accumulate wealth. The increase of personal wealth can be achieved by reducing expenditure, but the absolute increase of personal wealth will ultimately be achieved by increasing income. Salary income is limited, and investment is completely characterized by actively striving for higher returns. The rapid accumulation of personal wealth is mainly realized by investment. According to financial objectives, individual investable amount and risk tolerance, financial planners can determine effective investment schemes, so that investment will bring more and more income to individuals or families, and gradually become the main source of income for individuals or families, and finally reach the level of financial freedom.

7. Enjoy your old age. When people reach old age, their ability to earn income will inevitably decline, so it is necessary to make financial planning in the young and middle age to achieve the goal of a dignified and independent old-age life of "a sense of security, a sense of end and happiness" in old age.

8. Desirable property distribution and inheritance. Property distribution and inheritance is an unavoidable part of personal financial planning. Financial planners should try their best to reduce the expenses incurred in the process of property distribution and inheritance, and assist customers to distribute property reasonably to meet the needs of family members at different stages of family development. It is necessary to choose estate management tools and formulate estate distribution plans to ensure that family property can be passed down from generation to generation when customers die or lose their capacity.

Career development and prospects:

With the rapid development of China's economy in the past 30 years, the middle class and the wealthy class are rapidly forming, and a considerable part of them are gradually developing from the stage of radical investment and rapid accumulation of wealth to the direction of steady and conservative investment, financial security and comprehensive financial management, so the demand for financial planners who can provide objective and comprehensive financial management services is growing rapidly. According to a survey by McKinsey, the personal financial market in China will grow to 57 billion dollars in 2006, and professional financial management will become one of the most potential financial businesses in China. In contrast to the rising demand for financial services, the number of financial planners in China is obviously insufficient. The scale of China's domestic financial market far exceeds 1000 billion yuan. A mature financial market should have at least one professional financial planner in every three families. So, there is a gap of 200,000 financial planners in China, and there is a gap of more than 30,000 in Beijing alone. In China, less than 10% of consumers' wealth has been professionally managed, compared with 58% in the United States.

Financial planners can not only serve financial institutions, such as commercial banks and insurance companies, but also independently practice and provide financial services to customers as a third party. 1997, the average annual salary of financial planners in the United States is 1 1 10,000 dollars, which is equivalent to middle managers in large companies. The difference is that many of them only work 600 hours a year. In 200 1 year, financial planners ranked first in the ranking of "job evaluation", including presidential positions.

So what is the salary of this new profession? It is understood that the average annual income of financial planners in the United States is 1 1 10,000 US dollars, and the highest income of financial planners in Hong Kong last year reached more than 2 million Hong Kong dollars. Liu Yanbin, secretary general of the National Financial Planning Expert Committee, believes that the annual salary of domestic financial planners "should be between1000 and1000 yuan". Referring to China's macroeconomic situation, it is not difficult to foresee that financial planners will become another golden collar career with broad development prospects in China after lawyers and certified public accountants.

Personal financial planning is the top priority of financial planning. Personal financial planning is a long-term process, a process of striving to achieve lifelong financial security, autonomy, freedom and freedom; For customers, financial planning is also a comprehensive service. It is a comprehensive financial service that professional financial personnel analyze customers' life and financial status by defining individual customers' financial goals, so as to help customers make feasible financial plans. It is not limited to providing a single financial product, but is an all-round, multi-level and personalized service aimed at various financial management objectives of customers at different stages. The specific contents of personal financial planning include cash planning, consumption expenditure planning, education planning, risk management and insurance planning, tax planning, investment planning, retirement planning, property distribution and inheritance planning.

Practitioners who specialize in financial planning are called financial planners. Financial planners serve customers faithfully and objectively for a long time, and often enjoy the status of quasi-family members in many families.

It is generally believed that modern financial planning originated from American insurance industry in 1930s. After World War II, economic recovery and social wealth accumulation made American personal financial planning enter the take-off stage. The professional certification of financial planners in the United States has played a key role in promoting the development of personal financial planning industry in the United States and even in the world, making the financial planning business gradually develop into an independent financial service industry, and a professional technician-financial planner with objective and fair practice criteria has emerged. Their main business is no longer to get commissions from selling financial products and services, but to help customers achieve their life and financial goals, to conduct professional consultation, and to implement financial advice through a standardized personal financial service process to prevent customers' interests from being infringed.

Since the reform and opening up, China's GDP has grown at an average annual rate of 9.5%. It is the fastest growing country in the world, which is three times the average annual growth rate of the world economy in the same period. The middle class and the very rich are rapidly forming, and quite a few people's financial management concepts are gradually developing from the stage of radical investment and rapid accumulation of wealth to the direction of steady and conservative investment, financial security and comprehensive financial management, so the demand for financial planners who can provide objective and comprehensive financial management services is growing rapidly, and China has become one of the fastest growing countries in the world in personal financial business.

At present, the concept of financial planning has been gradually known in the financial industry, especially in insurance companies and commercial banks. Many insurance companies and commercial banks have set up special personal financial workshops or financial departments to provide customers with corresponding financial services.

In view of the strong social demand for financial planners and the absence of national standards for financial planners, the National Professional Appraisal Center organized relevant experts to formulate the National Professional Standards for Financial Planners according to China's national conditions, which came into effect on 23/2003 1 month, thus formally defining financial planning as a profession. In August 2005, the National Professional Appraisal Center entrusted Beijing Oriental Wall Financial Consulting Co., Ltd. and School of Finance and Finance of Renmin University of China to hold the first pilot training course for financial planners in Beijing. The students then took the national financial planner's experimental appraisal examination organized by the National Vocational Appraisal Center, and all the students who passed the examination were awarded the national professional qualification certificate of financial planner.