| "> | | | | of Standards Inc. (the CFP Board). This is perhaps |
| You would likely expect a CPA for complicated | | | | the most difficult designation to attain for a |
| tax work, a J.D. for your legal needs, or an MD | | | | financial advisor as it requires: |
| for healthcare. Why not expect a CFP (R) for | | | | |
| your financial planning & investment needs? | | | | 1. Education - Including approximately two years |
| The fact is most consumers of financial planning | | | | of coursework in investments, insurance, |
| services don't know much about the credentials | | | | employee benefits and retirement plans, financial |
| scarcely found throughout the financial services | | | | planning, and income tax. A bachelor's degree is |
| industry. Unfortunately, what you don't know... | | | | also required to hold the CFP (R) designation. |
| CAN HURT YOU! | | | | 2. Examination - The CFP (R) designation requires |
| While there are literally dozens of credentials | | | | successfully passing an extensive two day |
| created by educational institutions and other | | | | examination in the educations topics listed above. |
| organizations focused on various niches of financial | | | | 3. Experience - The CFP (R) designation requires |
| services, there are really three primary | | | | three years of relevant experience in the financial |
| designations relevant to comprehensive financial | | | | planning process. |
| planning at the highest level of skill. Comprehensive | | | | 4. Ethics - After all three requirements above are |
| financial planning is what you as a consumer of | | | | met, CFP (R) certificants must sign the CFP (R) |
| financial services should be most concerned with. | | | | Certification Application, requiring business |
| Nearly anyone can sell insurance or annuities, | | | | background disclosure and adherence to the CFP |
| stocks, bonds and mutual funds - but a truly | | | | Board's Code of Ethics. |
| comprehensive financial planner can add far more | | | | 5. Continuing Education - The CFP Board requires |
| value to your financial security in many ways! | | | | certificants to complete 30 hours of continuing |
| Comprehensive financial planning includes aspects | | | | education every two years including 2 hours of |
| of your financial life such as: | | | | ethics education. |
| | | | Chartered Financial Consultant - The ChFC (R) |
| 1. Insurance and Risk Management | | | | credential is a financial planning designation |
| 2. General Financial and Retirement Planning | | | | awarded by the American College. It also is a |
| 3. Estate Planning and Management | | | | widely known and respected designation in the |
| 4. Investment Planning | | | | financial services industry. The ChFC (R) |
| 5. Accounting & Tax Planning | | | | requirements are: |
| 6. Employee Benefits & Retirement Plans | | | | Experience - Three years of full-time business |
| An Accredited Asset Management Specialist | | | | experience (vs. the CFP (R) requirement of three |
| (AAMS) may have specialized knowledge in | | | | years of relevant financial planning experience). |
| investment planning and portfolio management, | | | | Code of Ethics - Adherence to a Professional |
| but may be inept at holistic financial planning. | | | | Pledge which is a code of ethics for those holding |
| Without a holistic approach to comprehensive | | | | the designation. Continuing Education - Requires |
| financial planning, they may be lacking the | | | | certificants to complete 30 hours of continuing |
| knowledge to properly diagnose and manage | | | | education every two years. Education - The ChFC |
| other aspects of your financial situation. This lack | | | | (R) designation requires completion of 6 college |
| of proficiency may in turn negatively impact your | | | | level courses and 2 elective courses, however |
| investment planning. | | | | there is no comprehensive test. |
| For example, most financial advisor's sell and/or | | | | Personal Financial Specialist - The PFS credential is |
| manage investment products. They can allocate | | | | awarded by the American Institute of Certified |
| and manage your investment portfolio (with | | | | Public Accountants (AICPA). This designation |
| varying levels of competency!), however if they | | | | requires a Certified Public Accountant (CPA) |
| don't have tax and retirement plan knowledge | | | | credential in addition to: |
| they may not stop to ask about your contribution | | | | |
| level to your 401k plan at work. This simple | | | | 1. Education - 80 hours of educational coursework. |
| oversight may lead to a negative financial impact, | | | | 2. Experience - 2 years of full-time experience. |
| as you likely would have been much better off | | | | 3. Examination - Completion of the CERTIFIED |
| with the tax benefits and possible employer | | | | FINANCIAL PLANNER (TM) comprehensive |
| contribution by maxing out your retirement plan | | | | examination. Each designation mentioned above |
| at work! The unskilled financial planner may | | | | illustrates dedication and determination to |
| overlook many areas of your financial situation | | | | excellence in financial planning as well as motivation |
| which must be addressed to achieve the best | | | | to provide the best financial advice and guidance |
| financial results for you. | | | | to clients. If you recognize the need for qualified |
| It's similar to a mechanic knowing how to change | | | | financial advice and guidance, you need a |
| the oil in your car. They may be efficient at | | | | professional who's taken the time to achieve one |
| getting you in and out of the shop with fresh oil | | | | of the three most important and recognized |
| and a new oil filter, but not realize the color or | | | | designations in the financial services industry. |
| texture of the old oil meant there is a larger | | | | You'll find CERTIFIED FINANCIAL PLANNER (TM) |
| problem with your engine, a problem that could | | | | Practitioner's, Chartered Financial Consultant's, and |
| leave you stranded on the side of the road! | | | | Personal Financial Specialists in every major city |
| Here are the three most commonly found, | | | | across the country - and around the world for |
| recognizable and reputable designations in the | | | | that matter. You expect the highest standards |
| financial services field: | | | | for your medical care (MD), qualified and |
| CERTIFIED FINANCIAL PLANNER (TM) - The CFP | | | | professional tax preparation and advice (CPA), and |
| (R) designation are financial planning credentials | | | | knowledgeable legal guidance (J.D.) - isn't it time |
| awarded by the Certified Financial Planner Board | | | | you expected more from your financial advisor? |