Who is a Financial Adviser?
In many states there are no strict regulations regarding the terms “financial adviser” or “financial planner,” meaning anyone can print up business cards using those terms. However, several professional designations are protected.The top designations you should look for are:
- Certified Financial Planner (CFP) – This is the top of the line in terms of professional designations. Before an adviser can carry this designation, they must complete three years of work in financial planning, take a course of study and pass a comprehensive set of examinations. They must also meet certain ethical and educational standards.
- Chartered Financial Consultants (ChFC) – Take courses of study on personal finance and pass exams.
- Certified Public Accountant (CPA) – CPAs must pass exams on accounting and tax preparation to win the designation. However, you want CPA who has also been awarded the designation Personal Finance Specialist.
Conclusion
If you decide to use a professional financial adviser, the most important considerations are the person’s integrity and your relationship.Method of compensation and other factors are secondary to establishing a level of trust that will allow you to work with the adviser in confidence.
