Home Based Business Financial Planner

A home based business financial planner advises and assists individuals and couples plan their financial future.

You meet with the client to discuss their financial goals. You work with the client to create a budget and advise them on ways to invest their monies that will produce the results they hope to achieve. You produce a written plan for the client.

You can provide a wide range of services or you can focus on a particular area. To sell insurance products and investment products such as stocks and bonds you have to be a certified financial planner.

The market for financial planning is a large one. You will be competing with full-service investment companies. However, you can carve out a niche for your home based business by providing your client with personalized service.

You will need to establish a referral network. You can begin by working with your family and friends who refer others to you. You can also network with attorneys, accountants, and bankers in your community who refer clients to you.

You can visit clients in their homes. If your home based business office is a separate room in your home and it conveys the professional image you project, you can have clients come to your home office.

You are privy to the personal, financial aspects of your client's life.

They must have confidence in you and feel they can trust you.

You may want to specialize in a specific area for this home based business opportunity: saving for college, retirement planning, special needs, and so forth.

What does it take for this business?

For this home based business opportunity:

• You will need a bachelor's degree and/or experience in a financially related field, such as accounting, economics, law, insurance, or banking.
• You will need a license to sell products such as stocks, bonds, insurance or real estate. Check your state and local laws.
• You may need to register with the Securities and Exchange Commission.
• You need excellent oral and written communication skills.
• You need the ability to interact with all types of people.
• You need to be able to inspire trust and make your clients feel confident in your ability to serve them.
• You need to be able to listen to your clients about their needs.
• You need to be willing to keep up with information regarding economics and the stock market so that you can advise your clients intelligently.
• You need to be flexible in your work schedule.
• You will probably have to work evenings and weekends at your client's convenience.

What does it take to operate this business?

You should set up a separate space for your home based business office. If your clients come to your home office, it should convey a professional image. If possible, you should have a separate entry with a comfortable waiting area for your clients.

Basic equipment and supplies:

• Computer
• Printer
• Spreadsheet software
• Fax
• Word processing software
• Business phone line
• Cellular phone
• Financial planning software

 Review resources for this home based business here.

What services do I provide?

As a financial planner, you

• Devise a financial plan
• Monitor the client's progress against the plan
• Adjust the plan, when needed
• Advise your client on investment opportunities
• Keep track of economic and stock market news
• Keep track of current events

What are my potential earnings?

$45,000 to $100,000 annually

How much do I charge for my services?

Typical charges are:

• Hourly rates: $75 to $150
• Retainer: Monthly or Annually
• Asset Management: 0.5% of the assets managed
• Commission Only: Commission on investment products sold

How do I bill for my services?

You present your client with an invoice of the services performed and the hours. If you are being retained on a monthly or annual basis, you may want to advance bill for your services. Submit your bill in advance for services:

January 1 _____ to December 31 _____

January 1 _____ to January 31 _____

How do I market my business?

Offline

• Give seminars on financial planning.
• Write a column on financial planning for your local and community newspapers.
• Network with and exchange referrals with attorneys, accountants, and bankers in your community.
• Teach a course at your local community college or adult education center on financial planning.
• Develop a mailing list of your target market and send a newsletter.
• Prepare direct mailing material for your target market.
• Establish customer base among family and friends and encourage referrals.
• Offer free consultations.
• List your home based business in the Yellow Pages.
• Purchase ads in local and community newspapers.
• Purchase ads in trade publications and magazines of interest to your target market.

Online

• Create an informative Web site for your home based business, offering tips and information on personal finance and financial planning.
• List your Web site in online directories.
• Issue an online press release.
• Link your Web site to related businesses.
• Link your Web site to local Web sites in your community.
• Join and participate in newsgroups and discussion forums related to personal finance.
• Write articles for e-zines on personal finance and planning.
• List your services on professional Web sites.

This home based business requires organization, attention to detail and an ability to work with people. You can review resources for this home based business here.