If you are accessing your financial situation and think you need a new advisor or are just starting to plan for your retirement you’ll need to choose a financial advisor carefully. In the following few blogs we’ll look at different aspects you should consider in choosing the right man or woman for the job of helping you build your wealth and future financial security. The first thing to consider is what credentials to look for when choosing someone to handle your investments. One of the highest levels of certification for a financial advisor is that of CFP®.
Credentials are crucial when you are talking about financial advisors. It’s highly recommended to use an advisor that is a Certified Financial Planner™, or CFP®. Only about 17% of financial advisors actually fall into this category. To become a CFP requires extensive education and testing. A Bachelors Degree is required first, then supplemental coursework must be completed. Then the exam comes. Some of the coursework required is general principles of financial planning, and coursework in every area of financial planning including insurance planning, investment planning, income tax planning, retirement planning, estate planning, interpersonal communication, professional conduct, and fiduciary responsibility. After this there is an exam and then, an additional Capstone Course. This is truly an impressive amount of education and it is good and right that it should be required as having someone’s investments in your hands is a big responsibility. This is just the first step in making your choice and we’ll continue the discussion in future blogs.