Financial Planning Process Research Articles

Exploring Relationships Between Technology Use and Time Spent in the Financial Planning Process

Using a unique data set with detailed information on the backgrounds and practices of 654 financial planners, this study examines the associations between the use of technologies by financial planners and self-reported time spent within various stages of the six-step financial planning process. Surprisingly, in many cases, use of technology is associated with an increase rather than a decrease in time spent within various stages of the financial planning process. These results suggest that although technologies may provide efficiencies in completing certain tasks, these efficiencies do not necessarily result in net reductions in time spent within the financial planning process.

Financial Self-Efficacy and the Saving Behavior of JFCP_29_2_A15_357-368-Retirees

This study investigates the relationship between financial self-efficacy (FSE) and saving behavior within a sample of 847 U.S. pre-retirees aged 50 to 70 from the Health and Retirement Study. In accordance with the social cognitive theory of self-regulation, results revealed that FSE is positively related to saving behavior after controlling for sociodemographic attributes, financial characteristics, and saving motives. Understanding how FSE contributes to saving behavior is critical as older workers attempt to bridge the retirement saving gap. Financial counselors and planners can help this population save by cultivating and supporting clients’ FSE throughout the financial planning and counseling process.

Condiciones para el desarrollo del proceso de planificación financiera en pymes del sector manufacturero de Duitama

La literatura reporta la importancia de las Pymes en el desarrollo económico de los países, por lo que se ha querido, a través de esta investigación, hacer un diagnóstico en el área financiera con el fin de determinar la presencia de planificación financiera de las empresas del sector manufacturero en la ciudad de Duitama. La investigación realizada aplicó la metodología para el análisis de la gestión financiera en Pymes; se tomó una muestra representativa de 40 Pymes. Este trabajo se centró específicamente en definir las condiciones que presentan las empresas para el desarrollo del proceso de planificación financiera; al finalizar la evaluación se encontró una presencia media de condiciones para llevar a cabo la planificación financiera en las empresas observadas, cuya causa radica en la deficiente planeación estratégica, así como falta de seguimiento y monitorización a las actividades, aspectos que llevan al trabajo poco funcional con las demás áreas de la empresa y al bajo establecimiento de mecanismos de control. Los anteriores aspectos los reconocieron los empresarios, y de allí que hayan propuesto planes de mejoramiento que se convertirán en herramientas administrativas para ayudar en la toma de decisiones y en el establecimiento de las políticas financieras.

500 (A Case Study of the Life Planning for Single Mothers in Their 50s)

Korean Abstract: 본 연구는 인생중심 재무설계라고 불리는 라이프플래닝 상담사례에 대한 내용이다. 실제 재무설계사가 재무설계 프로세스를 준수하며 고객과 상담을 진행하였던 사례이며, 우리 주변에 흔히 볼 수 있는 평범한 한국 가정에 대한 내용을 담았다. 본 사례연구에서는 재무설계 각 분야인 지출관리, 위험(보험)설계, 투자설계, 부동산설계, 은퇴설계 등을 재무설계 6단계 프로세스를 준수하며 진행하였고, 라이프플래닝 기법을 적용하여 고객 인생 전반의 문제를 해결하기 위하여 상담을 진행하였다. 본 사례에서는 중학생 아들을 둔 50대 가장으로서 한부모가정을 이끌어가는 어머니가 겪는 재무관련 문제 뿐 아니라, 청소년 자녀와의 사이에서 생기는 다양한 고민을 라이프플래닝으로 풀어가고자 하는 과정을 포함하였다. 재무설계사는 고객의 가장 중요한 재무적 문제를 노후대비와 자녀학자금 문제로 파악하였고, 이를 효과적으로 해결하기 위한 재무설계안을 제시하였다. 본 연구를 통하여 재무설계 6단계 프로세스 각 단계의 의미와 라이프플래닝을 통하여 고객과 소통하는 모습의 중요성을 다시 한 번 생각해 볼 수 있으며, 해당 경험이 부족하여 갈증을 느끼고 있는 많은 재무설계사들에게 간접적인 경험을 제공하고자 한다. English Abstract: This study presents a case study of Life Planning which is termed life - oriented financial planning. This includes an actual financial planning process via which a financial planner consulted with the customers in a six-step process of financial planning, which reflects the common problems of Korean households. In this case study, cash management, insurance planning, investment planning, real estate planning, and retirement planning, were implemented in accordance with the six steps of financial planning. The consultations were carried out to solve the various problems affecting the clients’ whole lives. The proposed financial plans include the process of solving various troubles that may occur between mothers and their adolescent sons, and the financial problems of mothers in their 50s who lead single parent families from the life planning perspectives. In this case study, the financial planner identified ‘retirement preparation’ and ‘tuition’ as the most important financial issues of the clients, and he proposed financial planning propositions in order to solve them effectively. This study emphasizes the importance of communication with customers and the six- step process in financial planning. It also provides indirect experience for many financial planners who are lacking in any actual experience with Life Planning.

The effects of the elaboration likelihood model on initial trust formation in financial advisory services

PurposeIn order for financial institutions to cope with increased competitive pressure from the financial technology companies, offering digital services such as a mobile service system (MSS) targeted for high net worth individuals (HNWIs) becomes critical. Despite long-term trustworthy relationships between HNWIs and financial advisors, studies suggest that the formation of initial trust poses a significant challenge. The purpose of this paper is to identify various features related to initial trust antecedents.Design/methodology/approachThe study was conducted using the survey data, and employs variance-based structural equation modeling (SEM) techniques to test hypotheses.FindingsThe findings from a closed experiment with 107 participants suggest that compared to more traditional service systems, customers are more prone to the construct of service quality, and specifically professional, prompt, dependable and timely financial advice.Originality/valueThe study validated key constructs that positively influence the initial trust formation process and ultimately the intention to use in an MSS for the financial advisory. The authorts particularly emphasized the rebalancing and monitoring steps in the financial planning process between HNWIs and client advisors.

Classification of risks in the process of financial planning

The essence of the concept «risk» in the process of financial planning is studied. The classification of risks was conducted. The article provides the full enough and detailed system of classification of risks in the process of financial planning. The author researches and provides the factors, which directly influence upon the size of risks, which accompany the process of financial planning. A complete set of isolated independent features was determined for each risk type. It was found out that a part of features depends only on the risk type and the other part is determined by the character of a risky situation. The article substantiates the presence of indeterminacy typical for dynamic and non-stationary environment and the risks of different nature and strength of influence on the efficiency of financial planning, which cause the necessity to develop and implement the effective system of financial planning at an enterprise.

Analysis of accounting of financial expenses in the process of financial planning of transport companies

The object of research is practical aspects of financial planning of transport companies. Factors affecting the parameters of the process of financing capital-intensive companies are analyzed, which include port and shipping companies. Structural changes in the economy and the financial system led to both a lack of financial resources in the market at an optimal price, and to reluctance of financial intermediaries to finance the activities of companies with a heavy asset structure. The level of competition on the one hand requires a reduction in costs, on the other hand, technical modernization, as a result, financial planning must be made more flexible. The conditions in the financial markets are considered to attract additional financing primarily for shipping companies. Changes in financing conditions need to be taken into account in the financial planning process, primarily the level of financial costs and the level of risk in budgeting, providing for an alternative way of financing. In some cases it is advisable to refuse to attract, as the effect of financial leverage can be negative. The study of trends in terms of development of capital raising allows to more accurately predict the level of efficiency of using the company's capital.

IMPLEMENTATION OF THE FINANCIAL PLANNING SYSTEM USING THE INTRA-UNIVERSITY INFORMATION SUPPORT SYSTEM OF THE FINANCIAL PLANNING PROCESS

The case-type article describes the experience of implementing financial planning in Volgograd State University. It describes an approach to solving the practical problem of improving university internal efficacy. The gist of the used budgeting-based approach to university financial management is described alongside with its technologies. The article suggests a new methodological basis for designing the process of planning and budgeting the university’s financial and economic activities as well as a method of creating infrastructure for gathering primary indicators, calculating the indicators of business finance-related matters, as well as for the automatization of planning and budgeting process. The authors identified the place of financial planning in the process of formulating and implementing university development strategy. There was chosen a model for planning and budgeting, local documents were worked out to regulate the planning and budgeting process, architecture of complex information system was designed to support planning and budgeting processes. The article enumerates financial responsibility centers, types of plans, income and costs included into the plans. Budgets of the financial responsibility centers were formed. As a result of the research, the authors proved the efficacy of a mixed planning and budgeting model for a regional autonomous university, as well as the feasibility of using its own information support system for the financial planning process.

Financial Decision-making by the Population: Process Modeling and Trends

Background: The present study focuses on the nature of the population’s financial decisions carried out under the personal financial planning process by people. Method: The methodological basis of the study is constituted by such methods of scientific research as statistical monitoring and comparative analysis, synthesis and forecasting. The authors have presented a model of consumer choice. Findings: The authors have analyzed the financial public decisions made in the context of economic instability; personal finance structure and consumer sentiment level dynamics have been covered; Russian citizens’ income differentiation trends have been shown. The main results of the study provide insights into the tendencies in the economic behavior of citizens that can be characteristic of the population of any state at times of macroeconomic parameters volatility. In particular, the authors identified comparative structure of the attracted credit resources and the citizens’ savings accumulated in commercial banks; it shows the ratio of savings and the amount of mandatory expenditures of the population; the Russians’ consumer sentiment index dynamics has been traced; the population has been arranged by quintile groups on the basis of the existent income differentiation trends in the Russian society. Key findings of the study are identification of very weak signs of the population’s adaptation to the economic and the geopolitical situation volatility, which is reflected in the discernible consumption bursts. Improvements: The authors have proved that the motivation for the population’s financial decisions and the socio-economic stratification in Russia are crucially influenced by such factors as the loss of a source of income (job) and the devaluation shocks.

The Process of Financial Planning in Personal Finance

The process of financial planning is not an event separate from situations of individuals, but an evolution in predictable and unexpected situations; The planning process should take into consideration: the constant changes that occur in our lives, our resources and financial decisions.This study claims to be a turn towards building a budget, how to save with payments,how to preserve more money for our welfare, etc. stable financial conditions.Good financial planning and maintaining financial stability will also help to prevent the financial crisis, which many cases are associated with social consequences without adjustingfor example: divorces and other consequences that distort the normal continuation of a healthy family or an individual personality unconditionally by phenomena not rationally acceptable.The financial plan of a family needs for consistency, because in this way the family will not face financial problems.Following effective management of personal income, the amount of Albanian families will be able to reach perhaps not a luxurious life, but would have a greater financial stability, more security.

Effectiveness of Fund Management at Local Government Bodies in Nepal

The study has examined the effectiveness of fund management at local government bodies in Nepal. Many problems could be observed at the local level government units, in terms of management of fund, lack of capacity, lack of elected representatives at grassroots level, political transition, lack of capacity to use information, and weak institutional mechanism. The study reports that the data on fund utilization should be easily available and comprehensible to the general public so that people can extract data, compare them, analyze them, and use them as per their needs. The study further highlights that the government need to focus on adequacy of the fund, proper mechanism of budget spent, and enhancing the efficiency of financial planning and budgetary process at the local level. To upgrade the credibility of the budget at the local and central government units, some measures need to be considered, for example efficiency of Municipality in delivery of service need to be strengthened, level of development work need to be visible enough.

Narrative Financial Therapy: Integrating a Financial Planning Approach with Therapeutic Theory

The article serves as one of the first attempts to develop an integrated theoretical approach to financial therapy that can be used by practitioners from multiple disciplines. The presented approach integrates the components of the six-step financial planning process with components of empirically-supported therapeutic methods. This integration provides the foundation for a manualized approach to financial therapy, shaped by the writings of narrative theorists and select cognitive-behavioral interventions that can be used both by mental health and financial professionals.

NAKİT DÖNGÜSÜNÜN FİRMA KÂRLILIĞINA ETKİSİNİN SEKTÖREL ANALİZİ

Isletme sermayesi yonetimi finans yoneticisinin onemli gorev alanlarindan birisidir ve zamaninin onemli bir kismini almaktadir. Ozellikle kisa ve orta vadeli finansal planlama asamasinda firmanin isletme sermayesi yapisi, icinde bulundugu sektorun ozellikleri de dikkate alinarak analiz edilmelidir. Bu calismada panel veri analizi kullanilarak, isletme sermayesi analizi icinde degerlendirilen isletmenin nakit dongusu ve bu dongunun isletmenin karliligina etkisinin olup olmadigi, varsa yonu ve derecesi arastirilmistir. Calismada, IMKB’de islem goren ve imalat sektorunde faaliyet gosteren 52 isletmenin 2000-2010 donemine ait veri seti kullanilmistir. Analiz sonucunda, imalat sanayi genelinde beklenenin aksine isletmelerin nakit donusum suresini (NDS) artirarak karliliklarini artirabilecekleri ortaya cikmistir. Kimya ve tas alt sektorlerinde ise karlilik ile NDS arasinda ters yonlu bir iliski bulunmustur.

Strategic Workforce Planning for a Multihospital, Integrated Delivery System

Banner Health has long recognized the need to anticipate, beyond the immediate operational realities or even the annual budgeting projection exercises, the necessary workforce needs of the future. Thus, in 2011, Banner implemented a workforce planning model that included structures, processes, and tools for predicting workforce needs, with particular focus on identified critical systemwide practice areas. The model represents the incorporation of labor management tools and processes with more strategic, broad-view, long-term assessment and planning mechanisms. The sequential tying of the workforce planning lifecycle with the organization's strategy and financial planning process supports alignment of goals, objectives, and resource allocation. Collaboration among strategy, finance, human resources, and operations has provided us with the ability to identify critical position groups based on 3-year strategic priorities. By engaging leaders from across the organization, focusing on activities at facility, regional, and system levels, and building in mechanisms for accountability, we are now engaged in continuous evaluations of our delivery models, the competencies and preparations necessary for the staff to effectively function within those delivery models, and developing and implementing action plans designed to ensure adequate numbers of the staff whose competencies will be suited to the work expected of them.

Issues Of Managerial Accounting Methodology

This article deals with management accounting, its role and objectives during financial planning process. Research of on American, German and Russian scientists are also considered. Author formulates his own definitions of aims of management accounting, highlighters that object of financial accounting have to include economic costs, economic revenue and economic added value, economic interest. More over Author defines methods of managment accounting.

The Financial Life Well-Lived: Psychological Benefits of Financial Planning

As the financial planning industry undergoes a series of reforms aimed at increased professionalism and improved quality of advice, financial planner training in Australia and elsewhere has begun to acknowledge the importance of interdisciplinary knowledge bases in informing both curriculum design and professional practice (e.g., FPA 2009). As this movement takes place, it is worth considering the ways in which the process of financial planning is potentially supportive of individual well-being at a number of levels, not just the financial. This paper provides an analysis of the financial planning process using the key mechanisms of resource appraisal, functional goal setting, and progress towards and attainment of goals, and identifies the ways in which these behavioural and cognitive activities may impact financial and life satisfaction, as well as psychological well-being. Implications for professional practice are also drawn.

Determinants Of Financial And Retirement Planning: A Female Perspective

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt 40.5pt;"><span style="font-family: "Times New Roman","serif"; color: black; font-size: 10pt;">The good news is that only 6% of senior citizens in the United States live in poverty, however, the bad news is that 75% of seniors in poverty are women. The challenge for women is to develop an investment plan that will enable them to reach financial freedom by the time they are ready to enjoy retirement.<span style="mso-spacerun: yes;">  </span>Early recognition of obstacles due to gender-differences is the first step towards financial nirvana.<span style="mso-spacerun: yes;">  </span>Women need to understand that the best way to achieve their goals is by taking an active role in the financial planning process at an early age and staying the course.<span style="mso-spacerun: yes;">  </span>The numerous financial education resources available can help women gain confidence to empower themselves to face the challenges of retirement planning with a renewed vigor.</span></p>

Financial Planning and Investor Communications at GE (With a Look at Why We Ended Earnings Guidance)*

In this edited version of a talk given at a conference of accounting academics and corporate practitioners, the Vice Chairman and Chief Financial Officer of General Electric describes the company's internal budgeting and financial planning process, and how the information generated by this process is communicated to investors. The company's business model—the common thread running through all its different businesses—is to make large investments in technology that make possible the firm's equipment sales, which in turn provide the basis for a profitable long‐term services business. The main role of the company's internal analysis and planning process is to help management allocate capital in a way that produces long‐run growth in revenues and earnings but, most important, a competitive return on investor capital.Another major aim of the company's planning process is to help management identify and manage major risks that could interfere with management's ability to carry out its strategic investments and goals. The company's focus on risk management is both reflected in, and facilitated by, a forecasting process that puts less emphasis on the accuracy of “point estimates” and pays greater attention to the range and distribution of possible outcomes. “What we really care about,” as the author says, “is the quality of the thinking and the dialogue among our managers that takes place around the forecasting process.”And it is the output of these internal processes, and “the quality of the thinking and dialogue” behind it, that are “the essence of what the company is trying to communicate to analysts and investors.” Instead of holding up quarterly earnings targets—a practice the company ended in 2008—management's communications with investors are intended to create “a continuous flow of information and feedback about the ongoing performance, investment opportunities, and risks confronting the firm.” In the author's words, “Ending the firm's longstanding practice of holding up earnings target s to the Street, and then trying to meet them, helped us rid ourselves of needless pressures and burdens… that can get in the way of managing for long‐run growth and profitability.”

Anatomy of a New U.S. Medical School: The Commonwealth Medical College

In response to the Association of American Medical Colleges' call for increases in medical school enrollment, several new MD-granting schools have opened in recent years. This article chronicles the development of one of these new schools, The Commonwealth Medical College (TCMC), a private, not-for-profit, independent medical college with a distributive model of education and regional campuses in Scranton, Wilkes-Barre, and Williamsport, Pennsylvania. TCMC is unique among new medical schools because it is not affiliated with a parent university. The authors outline the process of identifying a need for a new regional medical school in northeastern Pennsylvania, the financial planning process, the recruitment of faculty and staff, the educational and research missions of TCMC, and details of the infrastructure of the new school. TCMC's purpose is to increase the number of physicians in northeastern Pennsylvania, and in the next 20 years it is expected to add 425 practicing physicians to this part of the state. TCMC is characterized by autonomy, private and public support, assured resources in good supply, a relatively secure clinical base, strong cultural ties to the northeast, recruiting practices that reflect the dean's convictions, and strong support from its board of directors. TCMC has invested heavily in social and community medicine in its educational programs while still developing a strong research emphasis. Major challenges have centered on TCMC's lack of a parent university in areas of accreditation, infrastructure development, faculty recruitment, and graduate medical education programs. These challenges, as well as solutions and benefits, are discussed.

Aging and Financial Planning for Retirement: Interdisciplinary Influences Viewed through a Cross-Cultural Lens

Current theoretical models support the existence of interactions between the individual and socio-environmental forces when it comes to the formation and enactment of life plans (Friedman & Scholnick, 1997; Shanahan & Elder, 2002). In this investigation, we examine the social, economic, and psychological forces that impact financial planning for retirement. The collective force of these three broad sets of influences was examined from developmental and cross-cultural perspectives, among respondents from two countries with very different retirement financing systems. Participants were 419 American and 556 Dutch working adults, 25-64 years of age. Path analysis models were created to examine differences in planning associated with age and national origin. Compared to younger individuals, older respondents in both countries were more involved in nearly all aspects of the financial planning process. Differences across cultures were also observed in the social support mechanisms that underlie planning and the impact economic forces have on perceptions of saving adequacy. The discussion focuses on the value of developing interdisciplinary theoretical models of planning, and how such models can inform the development of savings-oriented intervention and public policy initiatives.