More than licenses and credentials

Financial planners not only offer different services depending on a number of factors, including credentials, licenses and areas of expertise, they also have different approaches.

Some planners work as part of a team of advisors, and others work primarily on their own. Regardless of income, a financial planning professional can assist a family, individual or business owner with calculating net worth; avoiding financial setbacks; assisting with major life changes; avoiding debt and credit problems; and deciding where to direct money, savings and investments.

“Most importantly, determine the professional’s approach to financial planning. Make sure the planner’s investing philosophy is not too cautious or overly aggressive for your goals. Find out whether the planner will carry out the financial recommendations or refer you to others to implement his recommendation. Some financial planners work with their clients directly, and others are part of a larger team,” said Jeffrey N. Vanover, CFP, a private wealth advisor with OakStreet Capital Management Advisors, a Private Wealth Advisory practice of Ameriprise Financial Services Inc.

A qualified professional whose business style suits an individual’s particular needs should be the objective in a financial planning relationship. Determine the qualifications, licenses and other financial service credentials the planner holds. If the planner holds a financial planning designation or certification, you can check their background with the relevant professional organizations, such as FINRA’s Broker Check, or the Certified Financial Planner Board of Standards Inc., which awards the Certified Financial Planner (CFP) designation.

“Consumers want confidence that they are prepared for today and on the right path to a more secure financial future. Certified Financial Planner professionals are well qualified to partner with them in creating a personalized financial plan to help them get there. CFP professionals have met rigorous education, examination, experience and ethics requirements, and can provide holistic financial advice on a range of topics,” said Dan Drummond, CFP board director of communications, Certified Financial Planner Board of Standards Inc.

In addition to delivering general financial planning services, many financial planners are registered as investment advisors or hold insurance or securities licenses that allow them to buy or sell products.

“Most people think all financial planners are ‘certified,’ but this isn’t true. Anyone can use the title ‘financial planner.’ Only those who have fulfilled the certification and renewal requirements of the CFP Board can display the CFP certification trademarks, which represent a high level of competency, ethics and professionalism. And because they are held to a fiduciary standard of care when providing financial planning services, a CFP professional is required to act in your best interests,” Vanover said.

As outlined by the Certified Financial Planner Board of Standards, to get the most out of your experience with a financial planner, you shouldn’t settle for anything less than the qualities of a true professional: integrity, objective advice, competence, fair treatment, privacy, professionalism and diligence.

To find a Certified Financial Planner in your area, visit LetsMakeAPlan.org.

“Consumers want confidence that they are prepared for today and on the right path to a more secure financial future. Certified Financial Planner professionals are well qualified to partner with them in creating a personalized financial plan to help them get there.” Dan Drummond, CFP board director of communications, Certified Financial Planner Board of Standards Inc.