Understanding Financial Planning
What is a Certified Financial Planner? What is the difference between a Certified Financial Planner and an Accredited Financial Counselor? What about a broker or an advisor? How many different terms can you have to describe something that sounds to most people like the same thing. Well, in reality, all these terms are actually quite different from each other. Besides these common terms, there also are a host of other terms for people that want to help you make the most of your money AND help themselves along the way. Not a bad thing, just something that you need to be sure you understand before you work with one or several of these professionals. According to the Certified Financial Planner Board of Standards, there are 25 certifying bodies for financial professionals and even they admit it is not an inclusive list. Below is a listing of the certifying bodies and their specific certification.
- AAMS® - Accredited Asset Management Specialist (800-237-9990)
- AEP - Accredited Estate Planner (610-526-1389)
- AFC - Accredited Financial Counselor (614-485-9650)
- ATA - Accredited Tax Advisor (703-549-2228)
- CEBS - Certified Employee Benefit Specialist (262-786-6700)
- CDFA - Certified Divorce Financial Analyst (800) 875-1760
- CFDP® - Certified Financial Divorce Practitioner® (866) 744-4250
- CFA® - Chartered Financial Analyst® (800-247-8132)
- CFP® certification - CERTIFIED FINANCIAL PLANNER™ certification (303-830-7500)
- CFS - Certified Fund Specialist (800-848-2029)
- CIMA - Certified Investment Management Analyst (303-770-3377)
- CIMC - Certified Investment Management Consultant (202-452-8670)
- ChFC - Chartered Financial Consultant (610-526-1450)
- CLU - Chartered Life Underwriter (610-526-1450)
- CMA - Certified Management Accountant (800-638-4427)
- CMFC® - Chartered Mutual Fund CounselorSM (800-237-9990)
- CPA - Certified Public Accountant (888-777-7077)
- CPCU® - Chartered Property Casualty Underwriter (800-644-2101)
- CTFA - Certified Trust and Financial Adviser (202-663-5092)
- EA - Enrolled Agent (202-694-1851)
- PFS - Personal Financial Specialist (212-596-6200)
- REBC - Registered Employee Benefits Consultant (610-526-1450)
- RFC - Registered Financial Consultant (800-532-9060)
- RFG - Registered Financial Gerontologist (888-367-8470)
- RHU - Registered Health Underwriter (610-526-1450)
Each and every one of these designations has a specific focus area. Each and every one of these designations also has some way of making money for the professional. Sometimes, they charge a flat fee for services. Sometimes it’s percentage of earnings. Sometimes it’s in a commission paid by a financial services firm. Sometimes it’s in a fee based upon the amount invested. No matter how you slice it, though, they all need to earn a living and there is always a fee, somewhere. If you find the fee, you find the motivation to offer you specific products. The absolutely best scenario is to find a professional that is used by someone you trust and who is motivated through their fee structure to help you win. If you win, they win. That’s what you want.
Find the fee and it goes a long way to helping you win!
