Many professionals help you with estate planning when giving you financial advice. In contrast, others make investment recommendations for your portfolio, help with budgeting, reduce debt, or provide tax optimization strategies.
A financial advisor is a qualified professional who provides services to manage finances, make decisions, and reach your goals. This post discusses choosing a financial advisor that is right for you and your budget.
What Kind of Financial Services Are You Looking For
A financial advisor can handle various services, specialize in a specific plan, or strategically guide you towards your goals.
You may require financial advice because of a financial situation or changing circumstances in your household like marriage/divorce, having a child, college planning, starting a business, or retirement.
Qualification Requirements Vary
Financial advisors or planners have a bachelor's degree with an accounting or finance focus as the minimum requirement. Advanced educational degrees are not uncommon.
Their course of study distinguishes certified financial planners (CFPs), with a rigorous exam, required experience, and high standards.
Look For A Fiduciary
Many financial advisors are fiduciaries. You want them to be experts, professional, and trustworthy. Choose your planner who adheres to the fiduciary standard.
Among the highest fiduciaries are Certified Financial Planners, or CFPs. The CFP certification is distinct from CFAs, or highly respected financial analysts who are in the investment analysis field. It requires certification in specific personal finance areas.