My Review

If you make purchases of financial planning services, it may seem like a jungle out there. There are advertisements everywhere, and everybody seems “nice”, but friendly, it will not be cut when it comes to your money. How can you cut to the hunt and to find an expert in financial planning that you can trust.

Start by learning the meaning of the different names. You may have noticed that there are three popular financial designations that most financial planners hold. You will want to choose one with one of the following designations.

Like many of the CPA, a Certified Financial Planner (CFP) must attend about two years of training and pass a rigorous test. This designation is given by the Certified Financial Planning Board of Standards, a national organization. After two years of preparatory courses, a Certified Financial Planner must obtain a passing grade on a test given ten days in the past two days. The Association for the financial planning can provide a list of Certified Financial Planners.

You may have also met some Chartered Financial Consultants. These graduates of the American College in Pennsylvania have completed a series of examinations and obtained from the experience of real life before obtaining their designation. However, the program is directed more toward the profession of insurance broad-based financial planning. The Society of Financial professionals can provide a list of these consultants.

The American Institute of Certified Public Accountants offers its own designation, a Personal Financial Specialist (PFS). Certified Public Accountants can win this additional designation by completing a comprehensive series of tests and demonstrate experience in financial planning. Most of these members are appointed by the National Association of Personal Financial Advisors, and they can refer you to a PFS in your area.

All of the foregoing certifying bodies require at least three years of experience prior to certification. Other designations exist, but these three are the most reliable. Since many unscrupulous individuals choose to call themselves “financial planners”, you would be wise to look for one with a certification by a recognized organization at the national level.

Since the Securities and Exchange Commission does not regulate small financial advisers (those under $ 25 million under deliberation), it is up to you to the screen of your financial planner carefully.

You can start by visiting the website of the National Association of Securities Dealers site. They list financial planners who have been disciplined on their website. Information is also available by telephone from the association toll free (800-289-9999). Also check with your state securities division for disciplinary actions and complaints.

Ask your planner for a copy of Form ADV, Part II. If you are not familiar with the form, they will be. This form is required by the Securities and Exchange Commission of each financial planner should specify how and what the planner is paid and any incentives they can win. Sometimes they will provide this information in the booklet or pamphlet form, but you know in advance what are your fees.

Finally, check references. A reputable planner will not have the spirit to give you some references to the floor. Find out if they handle portfolios similar to yours, and if the customer is satisfied with their services. Ask about fees.

This is your future, in so doing, a little homework in advance and make sure you get what you pay for it is worthwhile in the long run. Make sure your financial planner designation has a nationally recognized and check it before you hand over your hard-earned money. Your time and effort is a smart investment when shopping for a financial planner.