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Entry-Level: As an entry-level employee in a personal financial planning firm, assigned tasks and responsibilities will vary based on the type of firm, compensation structures, and target-market clientele. For many entry-level financial planners, assigned tasks will also differ based on the size of the firm and the value of assets under management. Regardless of these firm characteristics, entry-level employees will be expected to know the six steps of the financial planning process and be capable of assisting the primary relationship financial planner in the completion of any assigned tasks within the six steps. For entry-level employees, a major transition takes place in their knowledge and experience as theory and policy morph into practice and reality. The entry-level employee gains a solid appreciation for the need to stay abreast of changes in various laws and regulations affecting the personal financial planning process. The entry-level employee is introduced to local professional associations that provide visibility and credibility for furthering the planner’s education and the mission of the personal financial planning firm. The entry-level employee takes direction from a firm principal in discharging duties and must strictly follow internal policies and procedures when working with clients and client information. The entry-level planner’s understanding of the position and approach to the daily routine tends to be task-oriented, with a finite duration. Specific activities include:

1. Establishing and Defining the Client Relationship

Specifically, new hires will be expected to understand the process of, and approaches to, probing clients as a means of helping them to focus on their financial goals and objectives. Various strategies may be employed, including separate and joint interviews among clients that are designed to confirm areas of agreement and points of possible conflict, so that consensus may be obtained. Consider a situation where the desires of a married couple differ. Until a consensus can be obtained between the wife and husband, a financial planner will find it difficult to define the scope of the planning engagement or ascertain which documentation to gather in the planning process. Further, the emerging professional should be capable of drafting an engagement letter setting forth the specific components and limitations of the plan for review and refinement by the firm partner-in-charge.

2. Gathering Client Data

Based on information shared by the clients in the first stage of the financial planning process, an entry-level employee should readily recognize which common pieces of information and documentation will need to be collected from the client, regardless of stated client needs and objectives. This responsibility may entail the preparation of checklists to aid clients in assembling the necessary information, and the subsequent organization of information as received that will help to expedite the planning process. This may also include preparing, in draft, information release requests from other allied professionals (accountants, attorneys, investment counselors, and insurance professionals) serving the clients that may require client signatures in order to obtain copies of legal documents, tax information, portfolio statements, and insurance policies.

3. Analyzing and Evaluating Client’s Financial Status

Once necessary information is collected from clients and their advisers, the process of analyzing and assessing this information begins, much of it with the use of spreadsheets, calculators, and personal financial planning software. Entry-level employees must be completely proficient in time value of money (TVM) principles, in-house planning software, and their application and use to stated client needs and objectives to ensure that information is entered into software packages accurately.

4. Making Recommendations

At this stage of the financial planning process, the entry-level employee becomes more of an observer as the planning principal begins to establish a road map for presentation to the client. An entry-level employee may be asked to prepare alternate what-if scenarios as a means of presenting concise and clear options to clients. Ultimately, collateral presentation materials will need to be prepared to bolster recommendations, and the entry-level employee will likely play an integral part in the drafting of such information for review and comment.

5. Implementation

Once a clear path has been established and approved by the client(s), the entry-level employee will frequently provide assistance in preparing the necessary documents that are designed to fulfill the specific plan elements. Entry-level employees may also be asked to circulate the necessary paperwork for signatures, establish client accounts, and assist in the funding of these accounts.

6. Follow-Up and Monitoring

Some clients are notorious for procrastination and hesitation. Others launch into the process expecting immediate results. Either way, periodic follow-up and monitoring is required to bring the financial plan to fruition and to establish a baseline for future changes. Entry-level employees may be asked to prepare a series of reminders that serve to ensure that no aspect of the plan is overlooked. At specific intervals, entry-level employees may also assist in preparing annual or more frequent updates and reports for submission to clients.

Competent: The competent planner is experienced in handling all aspects of a client engagement. This includes the solicitation of prospective new clients, guiding and mentoring entry-level employees in the planning process, and brainstorming/strategizing with other allied professionals in the best options for client consideration. The proficient planner should be capable of following each stage of the financial planning process without routine supervision, and be alert to those prospective situations that may be outside the scope of the firm’s capabilities or target market. The proficient employee is expected to be capable of making decisions on straightforward client matters, but to know when to seek the guidance and collaboration of more senior firm colleagues for addressing the unusual or highly specialized client need or situation.

The proficient planner will begin to exhibit a high level of effectiveness in decision making and strategizing. The ability to initiate and conduct research will be commonplace. Discussions with allied professionals will demonstrate a high level of maturity and critical thinking. Problem solving will play an ever-increasing role in the proficient planner’s daily routine. Weighing options, analyzing probable outcomes, and establishing clear and efficient paths leading to desired client outcomes will be the norm. In summary, the proficient planner begins to see how the various tasks performed in the entry-level years fit together to form a seamless product for serving client needs.

Expert: The expert personal financial planner functions at the highest possible level when serving firm clients. Over the years, the expert has likely encountered myriad client situations of varying sophistication and complexity. Consequently, the expert is capable of assessing client needs, organizing information, and formulating plans to fulfill objectives of clients. The expert gives clear direction to firm support personnel and instinctively knows when and where potential complications may surface in addressing client needs. The expert will also frequently participate in various pro-bono financial planning activities as a means of giving back to the profession.

Both proficient and expert planners exhibit behaviors within the firm and in public that embrace, establish, and demonstrate a culture of the highest technical proficiency, as well as impeccable ethical standards. These high-level standards continue to evolve with the passage of time; proficient and expert planners welcome opportunities to expand their knowledge base and routinely share their knowledge and experiences within their firms to promote consistency.