Financial Planning Week focuses on awareness

by Jill Henry

SBJ Reporter

sbj@sbj.net

The Financial Planning Association, a nationwide network comprising 99 local chapters, is sponsoring the second annual Financial Planning Week Oct. 6-12. Seminars and educational events are scheduled for many chapters across the country, but local events are on hold until next year.

"We originally started out hoping that we could put together a deal where we might have a luncheon, but people got so busy and overcome with time, that's not possible," said William O. Woody of Stovall-Woody Associates. Woody is past president of Ozarks Chapter of the Society of Financial Service Professionals and a long-time member of the Financial Planning Association.

Locally, the goal is to spread awareness of what financial planners have to offer their clients.

Financial Planning Week seeks to educate the public on making wise decisions about the long-term process of managing everyday finances while planning for future financial needs.

"In this country, we take more time to plan a vacation than to plan our retirement. We live in a society where if you watch the tube and buy what they say to buy, you'd be broke in three months," said Woody, who has more than 23 years of experience as a financial planner.

"What we're saying in Financial Planning Week is it's important to do your planning, and we think it's important to use a professional," he said.

Woody holds professional designations as a certified financial planner professional, chartered life underwriter and a chartered financial consultant.

Members of the Society of Financial Service Professionals are required to hold one or more professional designations, such as CFP, CLU or ChFC. Or they may hold one or more from a list including certified employee benefits specialist, certified public accountant, juris doctor, master of science in financial services, master of science in management, registered employee benefits consultant or registered health underwriter.

While many financial professionals are granted state and federal licenses in specific areas, such as securities or insurance, their activities as financial planners are not regulated unless they have earned the CFP credential.

Comprehensive examinations and continuing education are established by the Certified Financial Planner Board of Standards Inc. in Denver.

Established by the College for Financial Planning and the Institute of Certified Financial Planners in 1985 as the International Board of Standards and Practices for Certified Financial Planners Inc; the board became the Certified Financial Planner Board of Standards Inc. in 1994. The board acts in the public interest as a professional regulatory organization, establishing and enforcing education, examination, experience and ethics requirements for CFP professionals.

The difference between a financial professional with or without the credentials can be compared to a teacher with a bachelor's degree, master's degree or doctorate, according to Andrea Croley of Croley Insurance and Financial, who holds the RHU credential.

Croley said the preparation demanded by the designation is beneficial to both the professional and the client. "That's not to say that (those without the designation) can't be good at what they're doing, but it isn't quite the rigidity of the test and the qualifications that are required for the CFP or any of those others."

"I don't want to sound exclusive in any way," Croley said, adding that one of the main goals of the society is education. Student-members follow a specific time frame as they progress toward taking the various tests for certification, depending on the designation they seek.

Some work with mentors on concepts and ideas that are presented. Like with many other vocations, Croley said, passing the rigid tests to earn professional designations could help ensure clients will receive a certain level of competence.

Clients' needs are met by financial planners in many other ways as well, through a list of products and services that includes retirement, education and estate planning, asset allocation, employee benefits plans, investments, annuities and life insurance.

Even though the public is becoming better educated about financial planning, Woody said there is still a strong need for professionals.

"The public needs good advice, and we live in very complex times. I'm in the advice business. A lot of people decided they didn't need to plan and didn't need any advice... and lost $1 million," including some who insisted on handling their own investments through the recent dip in the economy, "and lost $1 million. Business has been tough, but it's getting better. The economy is getting better," he said.

Woody said he has also seen clients expand their businesses and hire new employees in recent months.

"We have to know how to get things done for our clients," Woody said. Getting things done starts with asking clients about their future plans. "Where are you going and what do you want to have when you get there?"

A financial planner's main focus, Croley said, should be on the client's needs. "One of the things a financial planner does is have a broad view of what's going on in the market. It's not just one product or one thing, and not one-size-fits-all. It's not just a price issue. It's not just, How much does this cost me?'"

When looking to hire a financial planner, confidence and credibility are vital. Trust is also an issue. "This is a person whom you're going to be able to give some (confidential) information so that they're willing to help you," Croley said.

Woody's clients may come from all walks of life and economic backgrounds, but the one thing they have in common is success. "They think about a lot of issues and what they want to accomplish. Now, that doesn't mean they want to make a lot of money. They have a broad outlook on life."