by Tonglin Lok

Created on: September 17, 2008

Subway, busy central district, shopping mall Whenever, an executive looking person walks right up to you with the introduction, "Hi! I am a financial planner for retirement"

"WHAT PLAN? pay rise, promotion, strike lottery, sudden inheritance, stock market bull runforget it, I rather work hard."
Working hard is the sure way to earn a living. But retirement needs planning instead of working due to the sure fact that you are not working anymore.

Let's say, you have a thousand dollar cash in pocket today, your meal choice covers a wide range from high class restaurant to street food. What if? Only 10 dollar. Obviously, you will not die of hunger; it simply means that your meal choice has narrowed down to another range of variety.
That is the job of a Financial Planner - help you to choose a proper meal with what you have in your pocket.

They assist you to establish an achievable retirement goal by planning. The scope of work covers more than investment or risk management. Have you ever given a serious thought about the real retirement? Majority of us do not have a workable picture from our current status. It is clear; the reason is because we do not have a plan.

A professional financial planner usually adopts a six steps approach in financial planning for retirement. Each of them forms a vital role in reaching overall objective at the end.
1) Setting retirement goal
This is to understand and establish the retirement goal setting from the client. Example,
like, life style, car model, house type, number of dependent, holidays, no of
mistress..etc
2) Client's current status
This is to understnad client's existing position, Example, like, income, career prospect,
company prospect, saving, investment planetc
3) Evaluation of goal setting
This is to evaluate the functional aspect between client's goal setting and current
status, advice regarding revising goal setting will be given to the client if necessary.
4) Formalize the plan
This is to establish a formal plan on paper with visible milestone for progress
tracking.
5) Execution
This is the execution phase, Example, like, fund allocation, changing car model, start
savilng.etc
6) Checking
This is to ensure periodical financial goal has met and deviation from the plan is within
tolerance, So that final objective is achieved witout failing the client's expectation.

Well done! Now! Can I be a Financial Planner too with the easy 6 steps of operation?
Well! OK! Let me put it this way, If you can trust me to cut open your stomach because I have read, understood and memorised the detail procedure of how to remove an appendix?
Of course NO! you nuts, you have not done one yet?

Exactly, they are the professional by academic and practise. The accumulated experiences over the years allow them to respond to situation, especially in today's volatile situation.
They possess the following knowledge to distinguish themselves from an amateur,

1) Real Experiences from previous clients
2) Objective in goal setting as a third party
3) Ability to evaluate functional aspect of your goal
4) Instinct reaction in ccase of plan derailing
5) Familiar with economical cycle and its volatility
6) Familiar with entry and exit for your portfolio

So, we still rely on a professional financial planner, but hopefully, we know that we are relying on the right one.

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