Types of Financial Planners — Find the Financial Planner That’s Right for You

The term “financial planner” may sound harmless, but be aware that there are many different ways to call it. Some people who call themselves financial planners have absolutely no expertise or experience. Read on to learn about different types of financial planners and find the one that best fits your specific needs.

First of all, although very few certifications actually use the word “planner,” there are certifications that claim to be financial planners without being licensed. The main types of financial professionals you may encounter are:

• Registered Representative/Stockbroker
• investment adviser
• Certified Financial Analyst (CFA)
• Personal Finance Specialist (PFS)
• Certified Financial Planner (CFP)

You may also come across the term “financial advisor” when looking for someone to help you with your financial planning. Financial advisors generally offer their expertise to help clients with financial decisions, investments, and other financial matters. A financial planner is a type of financial advisor with a wide range of qualifications and specialties.

When in doubt, working with a Certified Financial Planner (CFP) is almost always a wise choice. This is because a CFP must pass her rigorous CFP certification process, which includes education, experience, continuing education, and a code of conduct. They are also trustees. This means that we are legally obligated to put our client’s best interests first.

CFP provides a wide range of financial planning services to examine your current financial situation, including liabilities and assets, and help you develop retirement financial plans and other key financial goals.

Hire a Chartered Financial Analyst (CFA) to find someone with nearly as much education and experience as a CFP. CFAs are accredited through the CFA Institute and must pass three levels of challenging financial exams (only about half of candidates pass each level).

CFAs are well trained to meet your financial planning needs. However, please note that you are not required to complete continuing education after passing (unlike the CFP). Before hiring a candidate, it’s a good idea to ask potential candidates how they stay up-to-date on financial services and trends.

Another option is to work with a professional Personal Finance Specialist who is already a Certified Public Accountant (CPA). PFS requires 3,000 hours or two years of full-time financial planning experience in her five years prior to applying for PFS. There are exams to pass, plus he has a 60 hour requirement for continuing education every three years.

You may only need a stockbroker, also called a registered agent. They work to sell products and are often commissioned, so they may not be the safest option (so they should not offer advice that is in your best interests). is not). Investment advisors are similar to stockbrokers, but are registered with the SEC or state securities regulators.

If people simply call themselves “financial planners” and don’t have certifications like CFP or CFA, think twice before hiring them. Someone may not have been trained in financial planning.

lastly, Nerd Wallet You can also use an online financial planner. It’s a service that combines a human financial planner with a computer-based portfolio manager that allows you to virtually talk to a human to a limited extent. This typically costs less than a traditional financial planner, but it can be a valid option.

In general, verifying the person’s eligibility is the first step. Someone with a certification such as CFP or CFA is usually the best option. This is because both have completed fairly intensive training to obtain these qualifications. Financial It’s also important to find out how her planner charges for services. We may charge a flat fee, an hourly fee, or a percentage of your assets under management.

Also, when hiring a financial planner, you should consider what services you need. You may need someone:

• tax planning
• real estate planning
• retirement plan
• investment
• Insurance preparation

Consider these needs when choosing a financial planner or advisor. You don’t necessarily have to pay someone for all these services, and that can affect your costs as well.

Financial planners charge a fee for their services, so be sure to ask about their compensation structure. You usually have one of the following options:

• Pricing only (hourly or per project billing)
• Assets under management (claim a percentage of the money they manage for you)

Do some math to compare different advisors or planners and what they can offer.