Tips for Working with Financial Planners

 The following information is based upon information from the Financial Planning Association and National Association of Personal Financial Planners. This information should be helpful as career counseling professionals seek out financial planners as partners in providing Career Asset Management.

People who call themselves financial planners may not currently regulated as financial planners by either state or federal government. Many financial planners are regulated by states through subsets of financial planning, such as insurance and taxes, but not for their overall financial planning activities.

The Securities and Exchange Commission (SEC) and most states have requirements for people who give investment advice, which would include many financial planners. You want to know whether the planner you are considering is a registered investment adviser or is an agent of a company that is registered.  CFP practitioners are certified and regulated by Certified Financial Planner Board of Standards, Inc. (CFP Board). The following are some of the certifications a financial planner may have:

• NAPFA-Registered Financial Advisor
  (60 hours continuing education every 2 years)
• Certified Financial Planner (CFP)
  (30 hours continuing education every 2 years)
• Chartered Financial Consultant (ChFC)
  (30 hours continuing education every 2 years)
• Certified Public Accountant/Personal Financial Specialist (CPA/PFS)
  (60 points every 3 years)
• Financial Planning Association (FPA)
  (continuing education not required)

In addition to competency, a financial planner should have integrity, trust and a commitment to ethical behavior and high professional standards.  Many planners specialize in working with certain types of clients, such as small-business owners, executives or retirees. Many have minimum income and asset requirements. Some specialize in certain areas of planning such as retirement, divorce or asset management.

A first step in seeking the right partner is to request a written disclosure document from the planner.  This should answer many of your questions.  Then schedule a meeting with your potential partner.  Some of the basic information you want to gather:

• What financial planning and other financial designations the planner holds
• Educational background and work experience
• Licenses to sell certain financial products, such as life insurance or securities
• Services the planner provides
• The planner’s basic approach to financial planning
• Areas of specialization
• Types of clients the planner serves, and any minimum net worth or income requirements
• Professional affiliations
• How the planner prepares a plan
• How the planner is paid for services (fee-only, commissions)
• Has the planner had any Career Asset Management training