WTP for Financial Planning Services: Who Financial Planners Serve? Estimating the Needs of the Broad Population

2021 ◽  
Vol 11 (1) ◽  
pp. 5-34
Author(s):  
Wookjae Heo ◽  
Jae Min Lee ◽  
Narang Park
Keyword(s):  
Financial Planning ◽  
Financial Planners

Does AICPA Accreditation of Nonaudit Services Add Value? The Case of Personal Financial Planning

2000 ◽  
Vol 14 (1) ◽  
pp. 49-67 ◽  
Author(s):  
D. Shawn Mauldin ◽  
Mark Wilder ◽  
Morris H. Stocks
Keyword(s):  
Financial Planning ◽  
The Other ◽  
Differential Effects ◽  
Relative Value ◽  
Professional Attributes ◽  
Financial Planners ◽  
The Future ◽  
Financial Planner ◽  
Nonaudit Services ◽  
Personal Financial Planning

The AICPA has taken the position that accreditation of CPAs in specific areas of practice is an important aspect of repositioning the CPA profession for the future. The AICPA currently offers two designations exclusively to CPAs, one of which is the Personal Financial Specialist (PFS) designation. However, the issue of accrediting CPAs by granting official AICPA designations is a complex and highly debated issue with opposing sides having compelling arguments supporting their positions. CPAs and other professionals specializing in personal financial planning have opportunities to obtain designations other than the PFS. This paper examines the relative value of these alternative options for financial planners. Specifically, the research was designed to examine the differential effects of alternative financial-planning accreditations on users' perceptions. These perceptions relate to various professional attributes of a financial planner such as their knowledge and expertise, objectivity, and level of trust and ethics possessed. In addition, these perceptions relate to fees charged and the influence that the designation has on the public's choice of a financial planner. Our results indicate that the CPA designation used in conjunction with the PFS designation is generally perceived to signal a higher level of professional attributes than the other designations examined in the study. In addition, a CPA with a PFS designation has a significantly greater influence on the public's choice of a financial planner than do the other designations. These results suggest that important benefits may accrue to CPAs from holding the PFS specialty accreditation.

Evaluating the Evolution of the Personal Financial Planning Industry: Mutualism, Commensalism, or Parasitism?

2021 ◽  
Vol 12 (1) ◽  
pp. 42-42
Author(s):  
Bryan Teoh Phern Chern
Keyword(s):  
Social Media ◽  
Financial Literacy ◽  
Financial Planning ◽  
Business Models ◽  
Service Providers ◽  
Personal Finance ◽  
Easy Access ◽  
Finance Management ◽  
Financial Planners ◽  
Personal Financial Planning

The financial planning and advice industry has been experiencing healthy growth for the past five years and is expected to accelerate this growth following the Covid-19 pandemic (IBISWorld, 2021). The pandemic has led to higher equity yields and appreciating asset value, directly increasing the total value of assets under management (AUM) held by financial planners and advisors. The industry in the US alone has surpassed $52.9 billion in 2021. As the economy is expected to improve, this figure is expected to follow suit. Not included in these figures are the explosion of online personal finance bloggers and influencers. Some YouTube and TikTok videos have raked in billions of views regarding personal finance (Smith, 2021). Many of these online contents have benefitted viewers and prompted them to start making good decisions regarding their personal wealth, spreading financial literacy to the masses. However, poor financial advice may be spread out as easily to viewers. The Wall Street Journal has reported on this issue back in 2005 where blogs and magazines have been found to give both good and bad advice on budgeting, saving, and overall personal finance management (Cullen, 2005). Whatever the net effect of this phenomenon, the easy access through social media has amplified it. This article briefly journeys through the evolution of personal finance management and personal financial planning, including the new trends this industry is moving towards. Subsequently, this article will look into the risk and rewards of the current personal financial planning and advice industry, including certified financial planners and uncertified personnel (social media influencers, financial gurus), as to whether consumers are benefitting as a whole, or otherwise. A disclaimer to this research is that the findings and opinions towards the industry do not encompass all the service providers in the business as there are many other influencing factors such as business models, individual agenda, and unique circumstances of each provider and consumer. Keywords: Conflict of interest; financial planning; financial experts; Influencers; Personal finance

A Study of Recognizing Conflicts of Interest in Pending Financial Planning Engagements

2015 ◽  
Vol 26 (2) ◽  
pp. 148-159 ◽  
Author(s):  
Frank C. Bearden
Keyword(s):  
Role Conflict ◽  
Financial Planning ◽  
Conflicts Of Interest ◽  
Influence Factors ◽  
Cross Sectional Study ◽  
Professional Judgment ◽  
Sectional Study ◽  
Recognition Time ◽  
Cross Sectional ◽  
Financial Planners

Conflicts of interest (COI) are an ethical issue for financial planners because they impair professional judgment if not addressed. This article describes a quantitative, cross-sectional study of COI recognition in pending engagements and measuring the influence of time in practice and financial planning credentials upon recognition. Participants were 51 graduates of the M.S. degree from the College for Financial Planning. Participants were asked three questions regarding each of the six hypothetical situations of pending financial planning engagements. Each question provided an indicator of COI recognition. Time in practice and financial planning credentials were used as influence factors upon COI recognition. Results indicated high COI recognition involving role conflict and low recognition with family members as clients. Time in practice was related to increased COI recognition involving role conflict. Financial planning credentials were related to increased COI recognition with a business associate as client.

scholarly journals An approach to understanding the professionalism of financial planners

2011 ◽  
Vol 6 (3) ◽  
Author(s):  
Ken Bruce ◽  
Abdullahi Ahmed ◽  
Helen Huntly
Keyword(s):  
United States ◽  
Financial Planning ◽  
Professional Associations ◽  
The United States ◽  
Professional Standards ◽  
Stakeholder Groups ◽  
Certified Financial Planners ◽  
Financial Planners ◽  
Outcome Space ◽  
Certified Financial Planner

The aim of this research is to investigate how key stakeholder groups involved with the certification of financial planners experience the phenomenon of the „professionalism of financial planners‟. The study is to be carried out to provide insight to the international financial planning community in establishing relevant and superior professional standards for Certified Financial Planner (CFP) professionals. This will be a qualitative study using phenomenography as a research methodology to describe the qualitatively different ways in which certified financial planners, lecturers of the CFP curriculum and association managers understand or experience the phenomenon of „professionalism‟. Research participants will be interviewed from the United States, Australia and Hong Kong and these interviews analysed to reveal the variations in the conceptions of „professionalism‟ and the attributes that can be identified from the phenomenographic outcome space to inform financial planners, academics and professional associations of what is required to be a CFP professional.

scholarly journals Identifying A Profile Of Key Competencies For Financial Planners

2011 ◽  
Vol 3 (4) ◽  
Author(s):  
Gerald J. Bedard ◽  
Jacques Prefontaine ◽  
Lise Poirier-Proulx
Keyword(s):  
Continuing Education ◽  
Financial Planning ◽  
Financial Services ◽  
Financial Services Industry ◽  
Font Size ◽  
Use Of Resources ◽  
Financial Planners ◽  
Key Competencies ◽  
Competency Based ◽  
Services Industry

<p class="MsoBodyText" style="line-height: normal; margin: 0in 38.2pt 0pt 0.5in;"><span style="font-size: 10pt; mso-ansi-language: EN-CA; mso-bidi-font-size: 12.0pt; mso-bidi-font-style: italic;" lang="EN-CA"><span style="font-family: Times New Roman;">In order to provide quality professional education programs to advance knowledge, skills and competencies of individuals in the financial services industry and in continuing education courses, there is a need to identify a professional&rsquo;s key competencies profile. In recent years, many financial planning associations worldwide have become interested in establishing competency-based requirements for certifying professionals and have adopted competency-based approaches for continuing education. The purpose of this paper is to identify a profile of key competencies for financial planners.<span style="mso-spacerun: yes;">&nbsp; </span>The empirical study is carried out through a stratified survey of financial planners within insurance companies, commercial banks, consulting firms, credit unions, security dealers and brokers, trusts and independent professionals.<span style="mso-spacerun: yes;">&nbsp; </span>More than individual knowledge or skills, this research views professional competence as result-oriented, expressing an optimal mobilization and use of resources available in the multidisciplinary areas of financial planning, according to professional standards and in harmony with best practices to achieve customer satisfaction. The research design presents an innovative conceptual framework which facilitates the identification of a profile of key competencies for financial planners. Findings enable an advance in knowledge, both at an academic and a professional level, by identifying a profile of twelve specific dimensions of key competencies for financial planners within the financial services industry.</span></span></p>

Psychological Aspects of Financial Planning

2017 ◽  
Author(s):  
Dave Yeske ◽  
Elissa Buie
Keyword(s):  
Financial Planning ◽  
Planning Process ◽  
Employee Benefits ◽  
Investment Planning ◽  
Integrated Strategies ◽  
Interdisciplinary Practice ◽  
Strategic Process ◽  
Financial Planners ◽  
Unique Domain ◽  
Personal Financial Planning

This chapter discusses personal financial planning, which is an interdisciplinary practice that employs a six-step process to develop integrated strategies for individuals and families to efficiently mobilize their human and financial capital to achieve their life goals. Financial planning draws from various disciplines, including counseling, psychology, finance, economics, and law. It includes budgeting and cash flow planning, risk management, insurance planning, investment planning, retirement and employee benefits planning, tax planning, and estate planning. The strategic process whereby financial planners develop integrated strategies that draw from all these fields in pursuit of client goals is the profession’s unique domain. Heuristics and mental biases to which clients may be prone overlay the entire financial planning process, however. Financial planners should understand and consider these issues when developing recommendations uniquely suited to each client, maximizing the probability that the client will embrace and implement the recommended strategies.

Generation difference in hiring financial planners in Malaysia

2017 ◽  
Vol 35 (4) ◽  
pp. 583-595 ◽  
Author(s):  
Meysam Safari ◽  
Shaheen Mansori ◽  
Stephen Sesaiah
Keyword(s):  
Decision Making ◽  
Generation X ◽  
Financial Planning ◽  
Emerging Market ◽  
Influential Factors ◽  
Content Type ◽  
Gen Y ◽  
Financial Planners ◽  
Financial Planner ◽  
Gen X

Purpose The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an emerging country. Design/methodology/approach This research is based on a public survey in Malaysia on the effect of five major contributing factors (namely, awareness, acceptability, affordability, accessibility and assurance) on the decision to hire a professional financial planner. The study further shed light into the difference among the influential factors among generation X and Y. Findings Although awareness, acceptability, affordability and assurance have demonstrated significant effect on decision making in general, their impact varies among different age groups. Results of moderation tests on the role of age suggest that for Gen X, the determinant factor is only their acceptability of the financial planning service. However, awareness, affordability, acceptability and assurance are critical factors for Gen Y respondents. In contrast to Gen Y, the Gen X respondents tend to have more awareness toward their needs for financial planning; they have gained enough experience to assess the credibility of the planner and test their assurance; and have higher earnings to afford the financial planners services. Originality/value Findings of this study are novel as it provide first hand picture from an emerging market in South-East Asia. Moreover, the study documents generation gap in financial decision making process.

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