Financial Planner Designations and Professional Associations

(6 of 7)

Financial Planner Designations and Professional Associations

One way to seek out a financial planner is to look for an individual who holds a financial planning license or certificate.

You can help identify a planner by any of the following designations:

• Certified Financial Planner (CFP®)
• Chartered Financial Consultant (ChFC)
• Chartered Financial Analyst (CFA)
• Personal Financial Specialist (PFS)

Planners with these titles have generally completed several years of intensive study in financial planning, passed a comprehensive financial planning test, and have previous experience working in the financial planning field. A code of ethics is usually a part of each designation as well.

Financial Planner Professional Associations

One resource for finding a financial planner is the various professional associations that serve them. By identifying the various planning associations and understanding which professionals they serve, you can better locate a financial planner who is suited to your needs.

• National Association of Personal Financial Advisors. The National Association of Personal Financial Advisors (NAPFA) is made up of financial planners who charge fees for their service rather than commissions on financial products they sell. Financial planners in NAPFA are not paid by any outside companies or agents to sell you specific products or services. They agree to be paid only by their clients.
• Financial Planning Association. The Financial Planning Association serves all financial service professionals. The FPA welcomes all financial planners and other professionals involved in any of the particular disciplines of financial planning. Though all related professionals are welcomed, the FPA does promote the attainment of a Certified Financial Planner license by anyone who practices financial planning. They also promote this license to the public as the designation of choice for financial planners.

Each of these organizations will be happy to provide a referral to their members in your geographic area.

Finally …

A financial planner with one of these certifications may be a good fit for you. Within certain guidelines, brokers and insurance agents can also offer you financial guidance and are licensed by the states in which they sell securities or insurance products. They generally earn commissions on the products they sell you. It is up to you to decide who is qualified to give you advice. After all, it’s your money.