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The growing need for qualified financial planners in South Africa
The 2019 Old Mutual Savings Monitor shows that many South Africans continue to earn some kind of income after they retire.

The 2019 Old Mutual Savings Monitor shows that many South Africans continue to earn some kind of income after they retire. It found that for every R100 these retirees receive, more than half (R56) is derived from post-retirement earnings.

The article South Africans continue to work in retirement unpacks the worrying findings that nine out of ten retirees still work to supplement their retirement income. But how are South Africans finding themselves in these dire circumstances?

Steven Nathan, chief executive officer of 10X, says it all goes back to a lack of planning, where as many as 45% of respondents began planning for retirement only after becoming established with partners or having children, while just 22% began planning at the beginning of their careers.

Many South Africans are approaching their financial future ill prepared, but this could be avoided. This is where a financial planner can help.

As a financial planner, you could help secure a better future for your clients, and build yourself a prosperous career.

Let’s unpack what your journey as a financial planner will look like.

The responsibilities of a financial planner

Sydney Sekese, a CFP®, offers this analogy describing the role of a financial planner:

The success of any sports or athletic team depends on a credible coach. Sports coaches train, coach and manage amateur and professional athletes.

They could be working one-on-one with an individual in sports like tennis, gymnastics or boxing, or they could be working with a team like in football, netball or rugby.

Similar to a sports coach, a financial planner can help you formulate your future. They could assist in developing a plan, which identifies your financial goals and builds the means of achieving them into your monthly budget.

While Sekese may be speaking to those who need the services of a financial planner, he explains how individuals with this kind of knowledge and expertise could be beneficial to South Africans who are struggling to properly prepare for their future.

More specifically, it is a financial planner’s job to assess a client’s current financial health and provide them with advice on how to achieve their short- and long-term financial goals. This involves a variety of tasks, including:

  • Developing a holistic view of your client, including their costs, earnings and financial goals
  • Regularly reviewing your client’s financial status in relation to their goals, and adapting your strategy as necessary
  • Advising clients on investment strategies.

Studying financial planning

In South Africa, qualified financial planners must complete a qualification exam from the Financial Planning Institute of South Africa (FPI). At the University of Stellenbosch Business School (USB), our financial planning courses will lay the groundwork so you can confidently approach the CERTIFIED FINANCIAL PLANNER® (CFP®) exams.

This qualification is internationally recognised and provides clients with the assurance that you have the relevant skills and industry  knowledge to help them build a sound financial future.

The Financial Planning Methodology

As a part of this qualification you will learn how to execute the three key financial planning functions:

  1. Collection: You will gather the information required to develop a financial plan, beyond just the information that is directly accessible to you.
  2. Analysis: Using the information you have collected, you will identify the needs of the client, and then complete an analysis and assess your findings.
  3. Synthesis: You will synthesise the information. This synthesis will allow you to identify possible strategies and develop a plan that best suits your client’s needs.

How these skills are applicable to the financial industry

You will be taught how to apply these skills to the following areas of finance:

  • Financial Management, which includes Personal Financial Ratios, Leases, and Insolvency and Bankruptcy
  • Asset Management, which includes Investment Structures, Portfolio Management Techniques and Behavioural Finance
  • Risk Management, which includes Business, Life and Health Insurance
  • Tax Planning, which includes Assessment Rules, Corporate Taxation and International Tax Issues
  • Retirement Planning, which includes Employer/Employee Programmes, Government Pension and Personal Retirement
  • Estate Planning, which includes Wealth Transfer and Personal Taxation.

Your potential career options as a financial planner

If you are looking to expand your career options beyond being an independent financial consultant, a financial planning qualification will help you find employment in institutions such as banks, investment firms or insurance agencies.

Unlock a more prosperous future for South Africans

If you see potential in a financial planning career and would like to help others prepare for the future, our Postgraduate Diploma in Financial Planning will equip you with the knowledge and skills to become a CERTIFIED FINANCIAL PLANNER®. If you have any queries regarding this or any of our other programmes, contact us today

Add information such as:

To establish yourself as a financial expert.

To get the credentials to empower people with a sound financial future

Maybe add more depth about the responsibility of financial planners and the skills required of them. Then tie this need for advanced competencies to the PGDip FinPlan.

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