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What Are the Different Financial Planner Responsibilities?

Alex Tree
By
Updated May 17, 2024
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Understanding a client’s financial situations and goals and helping people plan for retirement are common financial planner responsibilities. In addition, a financial planner might advise individuals or businesses on how to best file and pay taxes owed to a government. All financial planners are responsible for getting the education or certification necessary to work. They must also keep up with ever-changing financial products, laws regarding finances, and sometimes computer-related programs.

One of the most important financial planner responsibilities is learning a client’s financial situation and goals. Sometimes clients are individuals who need help with taxes or a sudden windfall, but other times financial planners deal with businesses. In all cases, the planner must take time to asses the client’s finances and short- and long-term goals and then figure out a method of reaching those goals with minimum risk.

A popular long-term goal is having enough money to retire by a certain age. Calculating the money needed to retire by then and the best places to invest are among the most common financial planner responsibilities. Investments can be risky, but the planner is also responsible for informing his or her client about the potential risks and how they could negatively affect a person. If he or she failed to disclose a risk or misinterpreted how risky an investment was, the client ends up unhappy and might not continue purchasing the planner’s services.

Taxes can also fall under financial planner responsibilities. While a lot of planners focus on helping people achieve financial security, some aim to prepare people for paying income taxes. This kind of help can be had any time of the year, because the planner can tell a client what to do differently to pay less when taxes are due. Financial planners are also responsible for being knowledgeable about current tax laws because they relate to investments.

Financial planners must prove that they are properly educated and certified. Without proper education and certification, it is impossible or illegal for financial planners to work in some regions of the world. In addition to procuring an applicable college degree, financial planners are responsible for maintaining current knowledge of financial products and securities laws. People in this field must be able to use work-related computer programs, such as spread sheets, to do their jobs effectively. Furthermore, less concrete qualities, such as mathematical ability and attention to detail, are generally regarded as invaluable in this field.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Alex Tree
By Alex Tree
Andrew McDowell is a talented writer and WiseGEEK contributor. His unique perspective and ability to communicate complex ideas in an accessible manner make him a valuable asset to the team, as he crafts content that both informs and engages readers.

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Alex Tree

Alex Tree

Andrew McDowell is a talented writer and WiseGEEK contributor. His unique perspective and ability to communicate complex ideas in an accessible manner make him a valuable asset to the team, as he crafts content that both informs and engages readers.
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