A good place to start looking for a savvy
financial adviser are with those who hold the title
"certified financial planner" or CFP. To earn the title,
CFPs must take a wide range of personal finance courses,
sit for a two-day exam, practice for at least three
years after taking the exam, and keep up with their
education. They're taught to look at the "big picture"
view of your finances - talking you through your goals,
as well as advising on the details of your financial
life.
When looking for a CFP, be prepared to find an alphabet
soup of other titles and designations such as certified
senior specialist (CSS), retirement plans associate
(RPA), certified retirement counselors (CRC), certified
senior advisor (CSA) and many others. In fact, there
are more than 60 different certified-this or registered-that
designations that provide various financial services.
Be alert however that some certifications require no
more than a few one-hour courses at a seminar or online,
which means they're not worth much. If you're considering
a financial planner with various certifications, be
sure they are also a CFP. To get a listing of the different
certification designations and their prerequisites,
visit the National Association of Securities Dealers
Web site at www.nasd.com.
When you get there click on Investor Information, then
Professional Designations
Fee-Only
You're probably better off hiring a
CFP that's a "fee-only" planner, verses one who earns
a commission by selling you financial products. Fee-only
planners charge only for their services - for example
you might pay $100 to $200 an hour for a financial tune-up,
a flat fee per project, an annual retainer or 1 percent
of assets for money management. Also note that some
planners call themselves "fee-based" or fee-offset,"
which means they charge both fees and commissions. You're
better off with planners who sell no products at all.
Here are some resources to help you find a fee-only
CFP:
* The National Association of Personal Financial Advisors:
Offers a fee-only membership directory of over 1,000
planners. To find a local member, visit www.napfa.org
or call 800-366-2732.
* The Garrett Planning Network: A network that currently
includes about 250 fee-only planners throughout the
U.S. They offer hourly as-needed advice and tips to
anyone regardless of income level. See www.garrettplanningnetwork.com
or call 866-260-8400.
* Certified Financial Planner Board of Standards: Offers
a national directory of its more than 50,000 CFP professionals.
To search for a CFP in your area visit www.cfp.net
or call 888-237-6275. Once you locate a few planners,
you'll need to call them to find out how they charge
Savvy Tips: When searching for a CFP, look for one with
at least five or six years' experience. Some other areas
you'll want to check into is their professional background,
education, what kind of client they typically work with,
how they charge and how much, and their disciplinary
history. For resources and tools to help you research
a CFP visit www.cfp.net
or call 888-237-6275 and ask for the free "Financial
Planning Resource Kit." And, if you're in the market
for investment advice, be sure to hire a CFP that is
also a RIA (registered investment adviser). To research
investment advisers or firms, visit www.sec.gov
and click on "Check Out Brokers & Advisers." Or if you're
researching a stockbroker see www.nasdbrokercheck.com
or call 800-289-9999.
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