5 Helpful Financial Planning Concepts for Finance Careers

5 Financial Planning Concepts to Help the 56% of U.S. Adults with No Budget
By John Koehler July 9, 2021

Are you worried you may be stuck working well past retirement age? You’re not alone. And with good financial planning, you can be on your way to financial security, so you can spend your retirement years sipping Mai Tais on the beach rather than chained to a desk. And who wouldn’t want that? However, for many different reasons and circumstances, finances aren’t always given the time and attention they need.

As you think about your personal financial health, here are a few eye-opening statistics regarding the finances of our nation’s citizens. According to the National Foundation for Credit Counseling ® (NFCC), only 42% of U.S. adults say they have a budget and track closely how much they spend.1 In a study conducted by the National Association of Personal Financial Advisors, 78% of Americans feel their current relationship with money is worrisome or stressful, 74% think they need a financial planning “do-over” and “1 in 3 don’t think they’ll ever be able to retire.”2

Despite these numbers, though, there is a bright side. These statistics can change, and with the help of knowledgeable financial planners, there are ways people can gain confidence in their finances and their future.

Better yet, do you think you would make a good financial planner? Do you want to help people plan not only their finances, but also a future they’re confident in? Then you should consider enrolling in Grantham’s online Bachelor of Business Administration in Financial Planning program. Here are five career-building finance concepts from our program that can prepare you for a successful finance career:

1. Tax Planning

Tax planning is important, regardless of your tax bracket. Life events, whether that’s a global pandemic, unexpected unemployment, selling a house, getting a new job or getting married, can bring changes to  taxes. There is a benefit from knowing how life changes can impact finances.

As a financial planner, it’s important to be able to provide guidance to those who may experience tax changes and want to better understand what that means for their finances.

2. Asset Allocation

Ever heard of the famous saying, “Don’t put all your eggs in one basket?” Well, this applies to the asset allocation aspect of financial planning. Someone’s assets are their investments and, if they have more than one investment, it’s important they know how to distribute their money to ensure the greatest return. Many investments are made with the intention of providing a comfortable retirement.

As a financial planner, it’s important to understand asset allocation strategy to help people make the best investment decisions for their future retirement. At Grantham, we understand the important role investment plays in finance, and we focus on asset allocation as a core concept of our financial planning degree program.

3. Retirement Planning

According to an in-depth report on saving for retirement through the Stanford Center on Longevity, only about half of all U.S. workers participate in a work retirement plan.3 In another report by the PEW Charitable Trusts, 35% of private sector professionals over the age of 22 work for employers that do not offer a retirement plan.4 This retirement crisis is problematic because Social Security cannot fully replace income in retirement. With so few Americans taking action early to plan for their retirement, taking the steps to plan seems more important now than ever before.

As a financial planner, you can help people take advantage of their employer-provided retirement plans and ensure their financial security down the road.

4. Risk Management

Risk is an inevitable part of life. But one thing people can do is account for any potential risks or uncertainties in their investments. For example, the Environmental Protection Agency requires companies that deal with hazardous materials develop a risk management plan to address the steps they are taking to avoid risk and determine what they will do if there is an accident.

With an online financial planning degree from Grantham University, you will have the knowledge necessary to help people estimate the impact of potential risks and be able to plan accordingly. Risk management is also crucial to successful project management and an essential part of any business.

5. Estate Planning

It’s important for financial planners to understand all that goes into estate planning. And no, estate planning is not only for the wealthiest of people. It’s meant to protect families if something happens to a family member. However, according to a legacy study by Merrill Lynch Wealth Management, only about half of all Americans have a will by the age of 50.5 Instead of someone leaving their family vulnerable to legal issues, estate planning can allow them to determine how their assets are distributed and ensure their family is taken care of.

Earn Your Financial Planning Degree at Grantham University

Thinking about pursuing a career in financial advising to help others better manage their finances? The 100% online Bachelor of Business Administration in Financial Planning from Grantham University can allow you to gain the fundamental knowledge for these five finance concepts. In a curriculum of real-world financial situations, you’ll learn the strategies needed to help clients plan for their future and meet their long-term financial goals. Get started today!

About the Author

John Koehler
John Koehler is a senior marketing specialist on University of Arkansas Grantham's marketing operations team. John is passionate about enabling education opportunities and a positive experience for prospective students. John holds a Bachelor of Science in Business Administration degree with a concentration in Marketing from Rockhurst University.
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