With the global Muslim population expected to grow by %30 in the next two decades, Islamic financial planning is becoming an increasingly vital service. There are various types of Islamic financial planners in the market such as shariah financial planner and many more but it’s important to hire a reputed one to get the best financial advice. Here are five things you should know about this growing trend.
1. What is an Islamic financial planner?
An Islamic financial planner is someone who helps Muslims save and invest their money in a way that complies with Islamic law, or Shariah. This type of financial planner is unique because it must take into account the religious restrictions placed on Muslims when it comes to investing and saving. Shariah prohibits Muslims from investing in companies that produce alcohol, pork products, weapons, pornography, or gambling. An Islamic financial planner will help you find investments and savings products that fit within these guidelines.
2. How does an Islamic financial planner make money?
An Islamic financial planner typically makes money in one of two ways: by charging a commission on the products they sell, or by charging an advisory fee. Commission-based planners make their money by earning a commission from the products they sell. This could be a commission from the bank, insurance company or mutual fund that they sell products from, or it could be a commission from the customer for buying a product. Advisory fees, on the other hand, are paid by the customer for advice and services provided. This could be for creating a financial plan, investing money or simply providing general advice.
3. What are the main functions of an Islamic financial planner?
An Islamic financial planner performs five main functions: risk management, asset allocation, investment advice, retirement planning, and estate planning. By taking a holistic and individualised approach, they can help you achieve your financial goals while staying within Islamic guidelines. They’ll work with you to create a custom plan that fits your unique needs and circumstances.
4. What skills does an Islamic financial planner need?
An Islamic financial planner should be well-versed in a variety of topics, including Shari’ah law, investments, banking, accounting, and insurance. They should also be able to provide advice on cash flow management, debt accumulation and repayment, and risk management. In order to provide holistic advice to their clients, Islamic financial planners must have a deep understanding of both financial and Islamic concepts.
5. How to find a qualified Islamic financial planner?
If you’re looking for someone to help you with Islamic financial planning, it’s important to find a qualified professional. Not all planners are created equal, so be sure to do your research and ask around to find someone who’s trustworthy and experienced in this field. If you’re not sure where to start, try contacting your local Islamic centre or mosque for recommendations.
Conclusion:
If you’re looking for a more ethical and responsible way to manage your finances, an Islamic financial planner may be the right choice for you. Islamic financial planning takes into account both spiritual and worldly concerns, ensuring that your money is spent in a way that is both responsible and ethical. If you’re interested in learning more about Islamic financial planning or shariah financial advisor, be sure to check out our website for more information.