A qualified financial planner must possess the following seven areas of knowledge: (1) Basic knowledge of financial management; (2) Basic knowledge of the use of financial assets; (3) Basic knowledge of life design; ( 4) Basic knowledge of real estate application/(5) Knowledge of financial management design that balances risk and insurance; (6) Basic knowledge of tax-saving financial management design; (7) Basic knowledge of property and property transfer design, etc. Below is a general introduction to each knowledge area.

1. Basic knowledge about financial management

Financial planners should be very clear about what financial management is, what are the background factors for the rapid development of the financial management industry, the history and current situation of financial management development, etc. What is a customer's financial management goal? It is an expected increase in personal assets that the customer sets for himself within a certain period of time, that is, a personal financial management goal for a certain period of time. Classification of personal financial management goals:

(1) According to the length of time, they are divided into short-term goals (about 1 year), medium-term goals (3-5 years), and long-term goals (more than 5 years).

(2) According to the life process, it is divided into personal single period goals. Starting to work until marriage; The goal of the family formation period: getting married until the birth of children; The goal of the family growth period: The birth of a child until the child goes to school; The goal of the child education period: The child goes to school until the child is employed; The goal of the family maturity period: The child is employed until the child is employed Before marriage; pre-retirement goals: before retirement; post-retirement goals: the period after retirement, which is the "golden years" in this book.

Financial planners should pay attention to the following points when focusing on the formulation of clients’ personal financial goals:

(1) It must be suitable for the client’s own conditions (the client’s social status, economic status, etc.) status, daily income, family, children, etc.).

(2) It must meet the requirements of customers at all stages of their lives and combine long, medium and short-term goals.

(3) The content of personal financial management goals must be very clear, that is, the time is clear and the numbers are specific.

For clients whose personal financial goals are unrealistic or inappropriate, financial planners should remind clients to make corrections. That is to say, after the client’s personal financial goals are set, they should not be set in stone but should be based on the implementation. According to the situation and specific environmental background, make corresponding adjustments in a timely manner to achieve the most practical requirements. It is best to revise the original financial management goals every once in a while (such as a year).

2. Basic knowledge about the use of financial assets

Basic knowledge related to economics and finance mainly includes the following aspects: economic development trends, changes in fiscal and financial policies, and types of financial institutions and characteristics, types and analysis of interest, foreign exchange rate trends, stock and real estate price changes, etc. Being able to grasp the trends in the above aspects is the minimum requirement in the knowledge system of a financial planner. When conducting financial planning, financial planners cannot make assertions to clients such as interest rates will rise in the future, stocks will rise, foreign exchange invested will depreciate, real estate prices will fall, etc., because this will mislead clients. The reason is simple. In these aspects, it is impossible to accurately judge how things will change in the future by human power. All aspects mentioned above only provide environmental analysis information for financial planners to plan.

In addition, interest rates, exchange rates, stock prices, etc., which are affected by fiscal policy factors, are controlled by the invisible hand of the market, especially exchange rates and stock prices. It is impossible for us to control them with our personal strength. of. Financial planners must constantly improve their analytical and judgment capabilities and make careful judgments for clients.

How to utilize financial assets is the basic knowledge of financial planning. This is based on the client's life design, so it is different from so-called investment. This is the most basic knowledge for financial planners on how to use financial assets to effectively achieve the client's life goals. For example: how to raise education funds for children, how to design the down payment for buying a house, how much savings should be prepared before retirement in order to live comfortably in old age, etc.

Financial asset design is based on the customer's life design, which mainly includes sorting out all information about the customer's financial assets, proposing specific financial management method suggestions, and explaining the current risks to the customer. No matter which investment method you use, there are risks.

Therefore, financial planners must have knowledge about the application of various financial assets and at the same time be able to fully understand the risks of various financial assets. When carrying out specific financial management operations, an investment portfolio should be carried out. Everyone knows that "don't put your eggs in one basket". Different investment tools have their own strengths and weaknesses. If all customer funds are invested in one financial product, it is often impossible to effectively prevent investment risks. The risk is very high, and it is difficult to obtain ideal investment returns. Therefore, when financial planners choose financial products, they must form a certain diversified investment portfolio based on understanding their investment varieties. This is the saying of "lost things are gained."

The financial product market is a market full of risks, uncertainties and high variability. Financial planners should be familiar with the varieties they invest in, pay attention to all aspects of information in a timely manner, and constantly make Make correct judgments and decisions, and appropriately adjust the types, composition, and holding quantities of financial products in the hands of customers.

3. Basic knowledge about life design

This aspect is based on the customer’s life design, calculating and analyzing the customer’s salary, pension and other income and basic living expenses, children’s education funds, Expenditures such as housing funds and senior living expenses. In other words, designing financial management for customers from a long-term and broad perspective is the basic and purpose of financial planning. It is very important to fully understand the customer's life purpose. Through analysis, we can know whether there will be a deficit in the children's schooling, how much impact the purchase of the desired residence and loan repayment will have on the family's livelihood, etc. These issues must be fully considered, otherwise, if the client retires less than 5 years ago, he will be If all the savings left at work are used up, the client's life in old age will become very miserable. This is the biggest failure of a financial planner.

Therefore, financial planners must systematically organize the clients' problems, which will help to propose solutions to the problems, as the basic knowledge related to cash flow analysis, and formulate a life event schedule and cash flow table, you can analyze and grasp the data of various funds of the industry.

We are at different stages of life and face different financial management issues. Life is generally divided into two stages: the first stage is the period from starting work to retirement (usually before the age of 60); the second stage is the "golden years" after retirement. In the first stage, it can be divided into:

1. Single period. That is, the period from starting work to getting married, usually within 2-5 years, is characterized by low economic income and high expenses. This period is the period of accumulation of future family funds, so the main content of financial management is to strive to find high-paying opportunities and immerse yourself in work, and to expand financial resources. The purpose of investment is not to make profits but to accumulate funds, that is, to focus on savings. In addition, small amounts of money can be set aside for high-risk investments with the goal of gaining investment experience. It is necessary to save a sum of money, firstly for future marriage, and secondly to prepare capital for investment. A major problem faced by singles in their 20s and 30s is likely to be money challenges. Before graduating from college, they were consumers of their parents' hard-earned money. After graduation, the situation completely changed. They have to earn money to support themselves and can only consume at a level that does not exceed their income. They have to form a lifestyle they can afford based on their existing economic strength. Singles must make reasonable financial decisions based on what they can afford. Whether it is a house, furniture, car, clothing, or entertainment, it must be consistent with existing conditions. At this time, singles must form good financial management habits in order to have a healthy financial life. The following principles are of great help in forming correct financial management habits: establish realistic goals and stick to them; establish your financial goals; choose the right friends and partners to ensure that they can support your financial goals; do not deal with too many tasks in a short period of time. Waste time and money on boyfriends and girlfriends; don’t overdraw your credit card, set aside 5 months of income for emergencies, and use part of it as investment capital; invest regularly and systematically, and look for high-end investments within the risk range you can bear. Income investment projects.

2． Family formation period. That is, the period from marriage to the birth of a newborn, generally 1 to 3 years. The characteristics of this period are that although the economy is increasing and life is stable, the family has certain financial resources and basic daily necessities, and daily necessities are relatively simple; In order to improve the quality of life, it is often necessary to increase household construction expenditures, such as purchasing some higher-end supplies; families buying a house with a loan also need a large expenditure. This period is the main consumption period of the family, so the main content of financial management is to reasonably arrange household construction expenditures. and invest appropriately.

3． Family growth period. That is, the period from the birth of a newborn to the time the child completes his education and joins the workforce is generally about 20 years. Depending on the children's education, it can be divided into three stages: In the preschool stage, the largest household expenses are infant health care, preschool education, and intellectual development expenses. The focus of financial management is to reasonably arrange the above expenses. In the compulsory education stage, as their children are out of care and their ability to take care of themselves has improved, young parents are energetic, have relatively ample time, have accumulated a certain amount of social experience, and their work ability has been greatly enhanced. Therefore, they consider starting a business, such as Venture capital, etc. In fact, many successful financial managers started their careers and achieved results at this stage. During the non-compulsory education stage, children’s education expenses and living expenses have soared. Those families that have achieved certain success in financial management and accumulated a certain amount of wealth are fully capable of coping and will not find it difficult to pay. Therefore, they can continue to take advantage of their rich experience and youth to develop. Invest in your career and create more wealth. As for those families that are not managing their finances smoothly and are not yet wealthy, they should focus on their children's education expenses and living expenses. The primary purpose is to enable their children to successfully complete their studies.

4. Family maturity. It refers to the time when the children join the workforce until the parents retire. This period is generally about 15 years. This period is characterized by the fact that one's own work ability and work experience have reached their peak, and the children are completely independent and have no worries about life. Therefore, the main content of financial management is to expand family investment. However, as you enter the later stage of life, if venture investment fails, the wealth accumulated throughout your life will be ruined, so it is not appropriate to choose venture investment. In addition, you must store a pension fund for yourself, and this pension fund should be untouchable.

The "golden years" in the second stage of life are mainly the retirement period, which refers to the period after retirement. The purpose of financial management during this period should be to spend your old age peacefully. The principle of financial management is that body and spirit come first, and wealth comes second. two.

Those families who are not wealthy should reasonably arrange their expenses on medical treatment, health care, entertainment, travel and other expenses in their later years. Investment and financial management during this period should be mainly prudent, especially no more risky investments.

4. Basic knowledge of real estate application

In an era of rising real estate prices, buying a house and becoming a "landlord" has become a popular investment method. With the improvement of the real estate transaction market and the reduction of various transaction taxes and fees, the flexible use of real estate as an investment tool can indeed achieve the purpose of ensuring the preservation and appreciation of family assets.

When individuals purchase real estate, they must first master as much information as possible about the housing supply. Currently, there are more and more housing agencies. You can choose a large-scale and reputable agency to understand and master the investment that is suitable for you. Information on new residential houses, commercial houses along the street or second-hand houses, carefully comparing factors such as housing prices, location, area, etc., comprehensively weighing them, and selecting the best among the best. After buying a house, you can use the method of buying a house to distribute rental information, and then choose a suitable tenant to sign a rental contract or agreement. In this way, you can receive a fixed rent every month and realize your investment desire to maintain and increase value.

At present, people are more optimistic about the prospects of real estate, and real estate financial management is becoming a hot spot and is favored by more and more people. It is undeniable that as people's quality of life continues to improve, living conditions continue to improve, and the real estate market is further opening up to domestic and foreign countries, real estate prices will maintain an upward trend for a certain period of time, and there are indeed many opportunities for real estate financial investment. Proper real estate financial management can bring good returns to financial managers, but unreasonable and over-the-top operations will lead to being trapped by real estate.

Real estate financial management generally includes two aspects: one is real estate investment and financial management involving real estate purchase behavior; the other is equity financial management that makes appropriate arrangements for the existing real estate status quo, including appropriate financial arrangements. These two There are some overlaps in specific operations.

Real estate investment and financial management takes advantage of the divisibility of real estate. After purchasing real estate, financial managers can expect to obtain price differences or rental income by transferring or leasing it. Real estate investment targets can be classified into multiple categories according to different distinction standards, such as off-plan houses and existing houses, residential houses and non-residential houses, first-hand houses and second-hand houses, etc. These classifications can be appropriately combined and further subdivided. These real estate properties can be used as targets, but not all targets are suitable for investment. Financial managers should act within their capabilities. The "strength" mentioned here includes not only financial resources, but also abilities. The size of financial resources has a relatively large impact on the payment method of the purchased real estate. In the case of borrowing from a commercial bank to purchase a house, the size of financial resources has a relatively large impact on the down payment and subsequent loan repayment ability of the purchased real estate; capabilities include Financing and the ability to seek added value or profit from the purchased real estate, the risk tolerance of real estate financial management, etc. In the current situation where housing prices are rising frequently, some risks in real estate investment and financial management must be considered.

The second is timing risk. The timing of real estate investment, or the real estate financial management target and its specific selection timing, is very important. Behind major opportunities are likely to be major challenges and risks. Now some real estate developers are hyping "joining the WTO" and some public opinion is hyping "investing in buying houses", which to a certain extent has promoted the rise in real estate prices. With the further changes in the urban land supply system, some real estate developers have won extremely high bids or acquired land use rights in the bidding market or auction market in order to obtain development plots, which will also drive up the housing prices of some properties. However, we must realize that the increase in real estate prices ultimately depends on the paying ability of the buyer or lessee. From an investment perspective, if the timing is not chosen well and the last move is taken, the risk is obvious.

The third is the expected risk of interest rates and payment ability. Under the RMB interest rate control policy, my country's current interest rate level has been at a low level that has not been seen in many years. However, since our home purchase loan interest rates are not fixed throughout the loan period, with the fluctuation of the economy and the implementation of interest rate market policies, certain loan and home purchase financial management activities that require a longer period of time for real estate investment and financial management operations will face difficulties. With the risk of interest rate fluctuations, it is possible to increase the debt burden. In addition, if you are not sure about the long-term stable income sources in the future, estimate too high, and fail to choose the appropriate loan ratio and term based on your ability, it will also lead to passivity and risk.

In real estate financial management, we must pay attention to analyzing the financial manager's own risk tolerance, including financial and psychological, to determine whether to adopt a radical or safe financial management method. In short, real estate financial management needs to be based on one's ability.

Currently, demand for real estate financial management is one of the largest aspects of customers’ financial needs. In Japan, people have experienced the painful history of the collapse of the "land apotheosis" and the collapse of the bubble economy, and have deeply realized the importance of financial management. When conducting real estate financial management, they often seek the help of financial planners and proceed rationally with the help of financial planners. invest. In our country, real estate continues to rise. Financial planners have the obligation to remind clients that when investing in real estate, they must clearly recognize the risks of real estate, a special asset, and make investment decisions based on their own risk tolerance.

5. Financial management design knowledge about balancing risks and insurance

Customers often encounter the following risks when making financial investments:

1. Market risk.

Taking the stock market as an example, market price fluctuations often cause the prices of the stocks you hold to fluctuate, causing losses. In addition to stocks, corporate bonds and other higher-investment investments are also greatly affected by this risk.

2． financial risk. Investing in stocks or bonds will cause the stock price to fall or be unable to allocate dividends due to poor management of the company, or the bond holders will be unable to recover principal and interest, or the owners will not be able to receive rent. In short, the investment cannot bring expected returns.

3． Manage risk. It means that it takes time and effort to manage. Buying a house to rent out involves this kind of risk. In addition, stock investors are often tricked by poorly managed securities companies, and this risk is actually quite high.

4. Interest rate risk. Rising interest rates on savings will hit the value of stocks, bonds and properties. The biggest impact is on bond investors, because rising interest rates will cause bond prices to fall, causing losses. However, if you have savings deposits, foreign exchange deposits, etc., you can reduce the risks caused by rising interest rates to a certain extent. For those with loan debt, rising interest rates will increase the interest burden. For people who make a living on interest income, low interest rates reduce income.

5． Inflation risk. Sometimes investment can make money in numbers, but if the inflation rate exceeds the profit rate of return, the loss of monetary purchasing power will be greater than the profit gain. To prevent the risk of inflation from consuming the purchasing power of your funds, you must include some investments in your financial portfolio that will appreciate in value during inflationary periods. Such as real estate, stocks, gold. Stock funds generally should appreciate in inflationary times. Other cash deposits, bonds, etc. in the portfolio may not be able to catch up with the price index. But as long as the funds are properly allocated and the funds are raised to make up for the losses, there will still be no losses.

6． Risks arising from changes in economic trends. The economy booms and busts, and the cycle continues. When the economy is booming, properties, stocks, collectibles, some futures, and even precious metals will appreciate in value. However, when the economy is in recession, it is more beneficial to hold cash and bonds, while stocks and properties will fall in price. A complete financial portfolio should include different investment projects. Diversified investments can reduce economic cycle risks.

7. Industry risks. Sometimes the economy itself is booming, but certain industries are increasingly depressed. Even insiders as experts will fail miserably because they cannot see the prospects clearly. As an outsider, you should not focus on investing in one or two projects. Only by distinguishing which are "sunrise industries" and which are "sunset industries" can we have good investment prospects.

8. Liquidity risk. It refers to the inability of investments to be converted into cash when needed. Bank deposits, bonds and most stocks can generally be liquidated quickly, so the liquidity risk is low, but real estate and general private collections are not easy to liquidate, and the liquidity risk is higher.

In order to help clients manage their finances rationally and avoid or transfer risks, financial planners need to have a detailed understanding of their clients' assets and liabilities. Assets are usually divided into liquid assets, which refer to cash, current savings, short-term bills and other currencies or bills that can be circulated, used and redeemed in a timely manner; investment assets, which refer to long-term savings, insurance funds, stocks, bond funds, futures, etc. to maintain value. , investment currency or bills for the purpose of appreciation; usable assets refer to various items for use such as residences, furniture, vehicles, books, clothing, food, etc. Real estate for the purpose of value preservation and appreciation investment should be classified as investment assets, and collectibles for the purpose of value preservation and appreciation investment should also be classified as investment assets. Short-term liabilities refer to debts that should be repaid within one year; long-term liabilities refer to debts that must be repaid in more than one year. It is necessary to analyze the client's personal net asset-to-liability ratio. When the income-to-liability ratio exceeds a certain range, the financial planner's attention should be drawn and the client should be advised to appropriately reduce some personal debt to avoid causing a certain amount of debt pressure. According to the repayment period and repayment ability of the debt, try to combine long-term, medium-term and short-term debts to avoid concentrating the debt repayment period and being unable to repay it by then.

In recent years, as people's financial awareness has increased, various new investment fields have been continuously opened up, and financial products have emerged in an endless stream in the financial market, making it possible for people to maintain and increase the value of their assets. In order to spend your old age peacefully, it is not enough to rely solely on the country, your work unit, or your children for retirement. You must prepare a future pension for yourself. And should this part of the reserve be deposited in the bank, buy stocks, buy insurance, or something else? For ordinary people, the traditional way is to deposit in the bank. However, from the perspective of sound financial management, in addition to savings, you should also consider buying insurance. It not only has a savings function, but more importantly, it has a protection function. It can realize risk management. Transfer, when something unexpected happens, you can file a claim with the insurance company so that the customer will not be overwhelmed by the unexpected event.

Financial management is a medium- and long-term financial plan that emphasizes effective control of risks. Financial management in the true sense is not limited to what people usually call frugal and frugal, nor is it simply equal to investment returns. Financial management is a medium- and long-term financial plan for people's lives, through the reasonable arrangement and use of assets and liabilities to achieve expected goals. Personal finance puts more emphasis on risk tolerance, control and avoidance. Its fundamental purpose is to build a safe life system for customers. Individual consumption actions are determined by individual quality of life.

The various plans provided by financial planners based on the client's life plan and needs, as well as the reasonable arrangement and operation of personal assets based on this, are to help the client achieve or approach the quality of life standard he wants, thereby obtaining lifelong consumption utility. of maximization. This determines that financial management activities are a medium- and long-term plan, not a short-term behavior.

Financial management activities should be based on a sound premise. Financial management involves investment, but it is not the same as investment. Asset appreciation is one of the important purposes of financial management, but more important is the control and avoidance of risks and the Sorting out property or debts. Due to the uncertainty of expected income and expenses, which will have an impact on the realization of life goals, one of the tasks of a financial planner is to help clients analyze possible risks in asset operations, avoid and reduce risks through diversified operations, and increase returns. . Those unrealistically high expectations are a taboo in financial management.

Everyone has financial risks such as unexpected expenses and reduced income. For example, the birth, old age, illness and death of family members, the occurrence of accidents, the layoff of the main source of income, etc. You must be financially prepared for these risks. At this time, it is essential to use insurance to avoid and transfer risks. Nowadays, there are many types of social insurance. Some people often pay insurance premiums repeatedly because they do not know enough about insurance. Financial planners must understand the characteristics of various insurance types and be able to design appropriate insurance for customers.

6. Basic knowledge about tax saving and financial management

According to the provisions of tax law, tax consultation, tax declaration and other services are the inherent business of tax accountants, and financial planners cannot Engage in these businesses alone. Therefore, when conducting tax-saving financial management, financial planners often need the help of tax accountants. Financial planners should also strengthen their knowledge of tax laws.

Correctly mastering the method of collecting personal income tax is also an important aspect of financial management. Here are some tax saving methods for you.

1. Income from wages and salaries. Wage and salary income refers to wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to employment or employment that an individual receives as a result of his or her employment. The key to saving tax on this income is: white income becomes gray; income becomes welfare as much as possible; income becomes insurance; income is materialized, that is, what is obtained is a specific physical object; income is capitalized, that is, what is obtained is a form of investment.

2． Income from production and operations of individual industrial and commercial households. The income from production and operation of individual industrial and commercial households refers to: (1) The income obtained by individual industrial and commercial households from production and operation in industry, handicrafts, construction and other industries. Individual industrial and commercial households or personal specialized projects are agricultural taxes (including agricultural specialty taxes, the same below, and animal husbandry tax collection scope and agricultural tax and animal husbandry tax have been collected, no personal income tax will be levied). (2) Income obtained by individuals who have obtained licenses with approval from relevant government departments and engaged in school running, medical treatment, consulting and other paid service activities. (3) Income obtained by other individuals from individual industrial and commercial production and operations. (4) Various taxable income related to business operations obtained by the above-mentioned individual industrial and commercial households and individuals. The tax savings of this income include: minimizing tax savings on income items; maximizing tax savings by deducting costs and expenses; tax savings by preventing the critical grade from rising.

3. Income from labor remuneration. Income from labor remuneration refers to individuals engaged in design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, review, calligraphy and painting, sculpture, film and television, sound recording, video recording, performance, Income from performance, advertising, exhibition technical services, introduction services, brokerage services, agency services and other labor remuneration. The key points for tax saving on this income are: graying of sporadic service income; decentralization of bulk service income; tax saving on the threshold for each tax collection.

4. Tax-saving ways to take advantage of days of residence. The calculation of personal income tax should be based on the judgment of the taxpayer's source of income and the nature of the income. The calculation steps are: first, calculate the number of days of residence in the year; second, calculate the taxable income. From a tax saving perspective, The smaller the taxable income, the better, and make it as gray as possible; third, calculate the deduction limit. From the perspective of tax saving, the larger the deduction limit, the smaller the tax calculation basis; and the smaller the tax calculation basis, the more beneficial it is to tax saving. Fourth, when calculating income tax, from the perspective of tax saving, when the tax calculation basis is certain, the tax rate is the key to tax saving. Therefore, when calculating income tax, the lowest tax rate should be used as much as possible, which is very beneficial to tax saving.

7. Basic knowledge about property and property transfer design

The ancient saying of "raising children to prepare for old age" passed down for thousands of years in our country has been deeply ingrained. However, scientific economic analysis shows that: a The flow of capital in a family is from parents to children, and reverse flow is rare. That is to say, parents pay more to raise their children, but children return much less to their parents. Parents have worked hard all their lives, but they still have to leave their life savings to the next generation. In Japan, the highest demand for financial planning is inheritance financial management. According to the annual financial planning survey conducted by the Japan Financial Management Association, the most common inquiries from customers to financial planners are issues related to property inheritance and gifting. Therefore, when helping clients with financial planning, it is necessary to meet the client’s requirement of “leaving as much property to the next generation as possible”.

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