Financial Planning: What's Your Designation?

If you're shopping for financial planning services, itdesignations do exist, but these three are the most
may seem like a jungle out there. There arereliable. Since many unscrupulous individuals decide to
advertisements everywhere, and everybody seemscall themselves "financial planners," you'd be wise to
"nice," but nice won't cut it when it comes to yourlook for one with a certification from a nationally
money. How can you cut to the chase and find arecognized organization.Since the Securities and
financial planning expert that you can trust.Start byExchange Commission doesn't regulate smaller
learning what the different designations mean. Youfinancial advisors (those with under $25 Million under
may have noticed that there are three popularadvisement), it is up to you to screen your financial
financial designations that most financial planners hold.planner carefully.You can begin by checking on the
You'll want to choose one with one of the followingwebsite of the National Association of Securities
designations.Like many CPA's, a Certified FinancialDealers website. They list financial planners who have
Planner (CFP) must attend about two years ofbeen disciplined on their website. Information is also
training and pass a rigorous test. This designation isavailable by telephone from this association's toll free
given by the Certified Financial Planning Board ofnumber (800-289-9999). Also check with your state's
Standards, a national organization. After two years ofsecurities division for disciplinary actions and
preparatory courses, a Certified Financial Planner mustcomplaints.Ask your planner for a copy of Form
earn a passing grade on a ten-hour test given overADV, Part II. If you aren't familiar with the form,
the course of two days. The Financial Planningthey will be. This form is required by the Securities
Association can provide you with a listing of Certifiedand Exchange Commission from every financial
Financial Planners.You may have also encounteredplanner and should spell out how and what the
some Chartered Financial Consultants. Theseplanner will be paid and any incentives they may earn.
graduates of American College in Pennsylvania haveSometimes they will provide this information in
completed a series of exams and obtained real lifebrochure or pamphlet form, but you'll know up front
experience before earning their designation. However,what your fees will be.Finally, check references. A
the program is geared more toward the insurancereputable planner won't mind giving you a few
profession than broad based financial planning. Thereferences to call. Find out if they handle portfolios
Society of Financial Professionals can provide yousimilar to yours and if the client is satisfied with their
with a listing of these consultants.The Americanservices. Ask about fees.It's your future, so doing a
Institute of Certified Public Accountants offers itslittle homework up front and making sure that you're
own designation, a Personal Financial Specialist (PFS).getting what you pay for is well worth it in the long
Certified Public Accountants can earn this additionalrun. Make sure that your financial planner holds a
designation by completing a series of comprehensivenationally recognized designation and check him out
tests and demonstrate experience in financial planning.before you hand over your hard earned money. Your
Most of these designates are members of thetime and effort is a wise investment when shopping
National Association of Personal Financial Advisors,for a financial planner.Jay Moncliff is the founder of a
and they can refer you to a PFS in your area.All ofwebsite specialized on Finance, resources and articles.
the above certifying agencies require at least threeThis site provides updated information on Finance.
years of experience prior to certification. Other