Financial Planning Association

The Financial Planning Association (or FPA) (U.S.), is a leadership and advocacy organization based in Denver, Colorado. FPA works with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations.

The organization was created in 2000 through the merger of the Institute of Certified Financial Planners (ICFP) and the International Association for Financial Planning (IAFP), Its stated Primary Aim is to be the community that fosters the value of financial planning and advances the practice and profession of financial planning. FPA is governed by a volunteer Board of Directors who are charged with helping the organization reach its mission while upholding the organization's bylaws.

FPA publishes a peer-reviewed journal in the financial planning profession, the Journal of Financial Planning.

History

On December 12, 1969, Loren Dunton convened a gathering of 13 financial services industry leaders at the O'Hare Hilton in Chicago. As a result of this meeting, the Society for Financial Counselling [sic] was formed to serve as an umbrella for both a membership organization, the International Association for Financial Planning (IAFP), and an educational arm, the College for Financial Planning. The first graduating class of the College, in turn, formed the Institute of Certified Financial Planners (ICFP) in 1973.

Financial plan

In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving in the future. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.

Context of Business

In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and cash flow statement) created within a business plan. Financial forecast or financial plan can also refer to an annual projection of income and expenses for a company, division or department. A financial plan can also be an estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company.