Ethics in the Financial Planning Industry

Famous author Samuel Johnson said “Integrity without knowledge is weak and useless, and knowledge without integrity is dangerous and dreadful.”

The recent collapse of some of the biggest names in the financial services industry has borne witness to this thought. While part of the blame for the financial crisis was placed on lack of a strong regulatory framework, it was a largely a result of lowering of ethical standards by managements. This included performance evaluation and incentive structures that induced sale of high risk and inappropriate products without needing to prove sustainability, coupled with weak oversight, reporting and disclosures. The events also busted a common myth that that as long as you don’t violate the law, you are ethical.

The cost of ethical breakdown is usually more than just regulatory fines and litigation. It leads to loss of image and reputation, heightened scrutiny by internal functions and government agencies and even employee demoralization and attrition. On the other hand companies that have consciously invested in developing a strong ethics program have actually seen benefits by attracting similar minded employees and business partners. Sales in this industry are directly linked to trust – so stronger the image of the company, higher the sales in the long term.

The dictionary meaning of Ethics is “The rules or standards governing the conduct of a person or the members of a profession”. Ethics in financial planning can mean various things, many of which are not precisely stipulated by the law – like acting in the best interests of the client by providing objective and honest advice, providing full disclosures of risks and benefits, and transparency, fairness and professionalism in all business dealings be it product design or customer service.

There are many elements that go into creating an ethical organization. A few that come to mind are:

Company Values: Values and expected behaviours set the tone for everything a company does. But it is important to constantly communicate these through real life examples and most importantly by consistent behavior of senior management.

Policies and Training: Create policies that document purpose, procedures, roles and responsibilities, reporting requirements and penalties for non compliance. Reinforce Company culture, code of conduct, legal & regulatory obligations and policies through training.

Embed transparency and fairness into product design, sales literature, advertising and all customer communication

Reward and Recognition: Ensure incentive structure rewards the behaviours that you want to encourage and include values and ethics component in performance appraisals.

Build strong risk management, controls and audit programs to ensure issues are anticipated or highlighted in time.

Whistleblower Protection: Create easily accessible channels for employees to escalate issues and have a robust process to investigate and deal with such complaints. Protect confidentiality to the extent possible and ensure non retaliation against whistleblowers. For employees to have faith in the process it is equally important to take swift and concrete action against offenders. This also displays how serious the company is about integrity.

The financial services sector is entrusted with consumers finances and therefore it is important that it takes the lead in setting the highest ethical standards.

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Financial Planning Benefits – Life Insurance

It is vital to ensure your financial plan identifies and defines your current financial situation and your financial goals, and provides a comprehensive path between the two. Most importantly, a holistic financial plan should not include a sales presentation. Unfortunately, many insurance and annuity salespeople commonly develop “financial plans” for their potential clients, but these documents are little more than a step-by-step explanation of why the product they’re selling is a perfect fit for that individual.

Insurance agents frequently come up with incredibly detailed (and confusing) documents to illustrate why their product is great for a potential purchaser. They have many “rules of thumb” to estimate how much life insurance a client needs. However, remember that an insurance agent’s compensation is a function of how much life insurance he can sell. Consequently, individuals are frequently sold more life insurance than they need.

How much life insurance would a fee-only financial planner, someone who doesn’t even have the ability to sell insurance, suggest you need? Likely, the fee-only planner would have a simple methodology that would enable the client to easily determine whether they are under or over-insured. Here is an example:

Suppose a couple determines that if the primary wage earner were to pass away, the other spouse would need $75,000 per year to maintain their standard of living. This non-wage earning spouse is 60 years old, and would like to have enough funds to support their lifestyle until reaching age 100. If we assume 3% inflation, the survivor will need approximately $2,147,778 to provide for themselves throughout their lifetime. In addition, we’d want to make sure this individual’s final expenses are taken care of, so we’ll add in $29,000, and we’ll also include enough funds to pay off the families debts – in this case $23,041 of credit card debt – bringing us to a total need of $2,176,778.

From this figure, we can subtract the sources of income the surviving spouse anticipates. For instance, this individual expects a lifetime total Social Security benefit of $361,066, and this person could also continue their part-time job, which is expected to produce another $71,314 of income over the survivor’s lifetime. Thus, after subtracting our anticipated sources of income we are left with a net estimated survivor needs shortage of $1,744,398.

Now, we can subtract out the assets we already have available to meet this shortage, such as retirement and bank accounts. We’ll suppose this couple has accrued $923,500 of assets to cover their retirement. After subtracted our accumulated assets from our survivor need, we come up with a figure of $820,898. This is the shortage that the couple will look to fill with life insurance. In this particular instance, the individual in question had a $1,000,000 term life insurance. As this analysis indicates, this individual is over insured by approximately $180,000.

It is important to conduct this analysis frequently. For every year an individual survives, the insurance need is reduced in two ways. First, the survivor will now need one year less of survivor benefit, and second, the primary wage earner will have produced one additional year of income. Consequently, insurance needs can decrease rather quickly.

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Noxitropin And The Importance Of Restful Sleep

If you have gotten to a point where you just need to take a step back and think about any lifestyle changes that you need to make, it might be time to find out exactly what your options are. The truth is that nowadays you can look as amazing as you want to, but only as long as you are willing to do the work and invest in proper supplements such as Anogenin and even Noxitropin. Before you buy them, you might want to learn a thing or two about the advantages they provide.

When talking about getting a good night’s sleep, one of the most important facts that you need to keep in mind is that it can be difficult to rest when you are agitated. For example, if you have had a rough day and feel incredibly stressed out, you are certainly going to spend the better part of the night tossing and turning. Even though you might be tempted to just work out without any help, you should know that Anogenin is going to help you see results after a couple of weeks. When you do manage to fall asleep, you will probably only rest for an hour or two before you need to get up and start your day.

Obviously, this is not the way that you want to live your life. Especially when you feel tired, it can be nearly impossible to do everything that you want to and obtain the results you desire. For example, if you have not slept the night before, your gym performance will have to suffer. This is why you should add Noxitropin to your diet. You will notice a difference from the first night you take it. Soon enough, you will realize that this supplement is the answer to all of your problems.

Besides Noxitropin, you can invest in Anogenin, a product meant to help you boost your metabolism and have a great time whenever you hit the gym. Even though you might be tempted to just work out without any help, you should know that Anogenin is going to help you see results after a couple of weeks. This means that before you know it, you are going to have less body fat and an increased level of muscle mass.

It might sound too good to be true, but you should know that these supplements are meant to make your life easier as soon as you start taking them. It would be recommended that you only invest in products made out of the best possible ingredients, which are supposed to help your body do what it is supposed to do. he truth is that nowadays you can look as amazing as you want to, but only as long as you are willing to do the work and invest in proper supplements such as Anogenin and even Noxitropin. Nowadays, it can be incredibly difficult to get some rest when you have to deal with a lot of stress and all sorts of events that will not allow your mind to relax. Supplements can help!

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Best Natural Dietary Supplements To Cure Low Energy Problem In Men And Women

With their growing age, most of the men and women experience that their energy levels are reduced and they are not able to perform the day to day activities with the expected vigor and stamina. Due to reduced energy and vitality, most of us feel prolonged mental and physical fatigue which makes us incompetent and incapable. Don’t ignore the low level of energy; this might be a sign of some serious health problem. Rather than just hopping on the couch try the best natural dietary supplements to get back into your life with full stamina.

Revival capsule cures low energy problem safely and the formula is suitable for both men and women. It is the best natural dietary supplement that people search in hope for a side effect free formula. The all natural ingredients in this supplement make it the herbal treatment that is effective in gaining optimum vitality at any age.

What causes low energy levels?

As we age the slowing system of the body shows in varied outcomes, reduced energy levels is one of them. The major reasons behind reducing levels of energy are:

1. Lack of nutrients in diet
2. Jumbled lifestyle
3. Lack of exercise
4. Slow metabolism
5. Deeper health issues
6. Iron deficiency
7. Thyroid issues
8. Depression and sleep difficulties.

In order to fight fatigue, make sure that your diet is just right. Occasional fatigue and low levels of energy are fine, but if you feel the same way for a prolonged duration then you should take a look at your diet, sleeping patterns, exercise regimen and you should also try the best natural dietary supplements.

What make Revival capsules the best natural dietary supplements?

It’s not possible to reverse the process of aging, but you can delay its progress by taking Revival capsules which are trusted by men and women to cure low energy problem. To get adequate levels of energy, it is essential that we eat nutritional food and our body is able to utilize the nutrition from the diet. This can be done with help of metabolism which is improved with these pills.

Revival capsules are processed with a wide range of nutritive, protective and rejuvenating herbs that are tried tested and trusted to cure low energy problem in a short span of time. The rich ingredients in these pills are Shilajit, Safed Musli, Ashwagandha, Shatavari, Haritaki, Kesar, Hirabol, Tambul and Long. These herbs are specially selected to improve vitality at any age, and with regular use any person can be active and energized.

Advantages of Revival capsules:

Revival capsules are recommended as the best natural dietary supplements that are completely safe and side effect free. The all natural capsules are suitable for prolonged use and with regular use one can experience the following benefits:

1. The formula contains anti-aging properties
2. It is effective to fight back stress
3. These pills help to prevent illness
4. Keeps men and women active and energized.

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Surprising Benefits Of Fish Oil For Hair Growth

It is common to lose hair as we age.The pattern of hair loss and amount that depends on numerous factors. However, few measures will be taken to slower down the process if not stopped. Important fatty acid like Omega-3, which is abundant in fish oil, will enhance the health of your skin, scalp, and roots, apart from improving the general health. If you want to buy fish oil tablets prefer for online shopping.

Advantages of Using Fish Oil for Hair:

There are many benefits of using fish oil. These benefits will be the range of the lowering blood pressure and triglycerides to reduce the risk of serious health conditions in patients who are suffering from the cardiovascular disease. There are huge benefits with fish oil supplements.

For now, let’s look at the hair benefits:

Hair Growth: The omega-3 important fatty acid will present in fish oil which facilitates hair growth. The omega-3 fatty acid will help to nourish hair follicles. You shouldn’t apply the fish-oil directly to your hair; instead, it should be incorporated into your diet.

Hair Quality: Besides helping your hair growth, the utilization of fish oil will also help to keep your hair quality high. The protein which is present in the fish oil will help your hair to remain strong, shiny and durable.

The Omega-3 essential fatty acid will maintain the healthy hair. In addition to this, they will strengthen the hair roots and minimize the amount of hair fall. Omega-3 fatty acid is important for hair development as well.

Whilst the impact of Omega-3 fatty acid on the hair growth is under extensive experiments, many individuals will prefer to eat fish or take fish oil supplements to promote the hair growth.

How to Take Fish Oil:

It is certainly one of the greatest products to maintain your hair and the scalp. However, it is not applied physically to the hair. Below are few ways that how you can use fish oil:

Include it in your diet. Most of the fish are rich in Omega-3, which are essential for hair growth. Make sure that you will take fish once or twice in a week.

With the intake of right dose of the fish oil supplement, one can definitely achieve the desired results to maintain the hair health. However, an overdose will act adversely.

Generally, fish oil is consumed in foods or taken as a supplement to treat a wide range of conditions. Fish oil can also improve some skin conditions, by protecting against the sun’s damaging rays and boosts the hair quality.
Precaution Using Fish Oils

Before going for fish oil supplements or raising the quantity to your daily diet, contact with your physician. While fish oil is thought to be safe if drawn in the low doses, it might be dangerous in higher doses.

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