Handling financial struggles on your own can be a large burden. Seeking professional help can lead you to smarter decision making, reaching your financial goals and securing your financial future. There are several options for help and each offers certain unique services. Beyond the vast online options to help you tackle your finance needs, it’s important to understand the different kinds of finance experts available before picking the right adviser for your situation.
Certified Financial Planner
The CFP title indicates a professional certification form the Certified Financial Planner Board of Standards in the U.S. and by international organizations affiliated with the Financial Planning Standards Board.
This designation is awarded to candidates who meet educational, examination, experiential and ethical requirements and pay a continuing certification fee. Each candidate must demonstrate extensive knowledge in the financial planning field, including client relations, gathering data and goals, analyzing a client’s financial status, developing recommendations and solutions, and implementing as well as monitoring these solutions. The goal is to keep you from making money mistakes.
A CFP will study your income, taxes, debts, investments and other aspects of your financial portfolio and work with you to set and meet goals and clear up financial uncertainty. These financial planners have proven themselves through relevant coursework, success on a 10-hour personal finance exam and at least three years of relevant experience; their designation offers credibility. But they are not the only option.
Money Manager
A money manager manages securities portfolios for people or institutions. These advisers have the fiduciary duty to choose and manage investments in the best interest of clients. Since these advisers are not paid based on commission, but rather on a percentage of assets under management, their interests also lie in the growth of your portfolio. Money managers are regulated as investment advisers by the Securities and Exchange Commission.
Financial Adviser
Financial advisers are professionals who provide financial services to clients. These are usually investment professionals such as brokers, investment advisers, accountants, lawyers and insurance agents that provide different products and services based on the license and training they have. These individuals are usually paid by flat fee, hourly rate, commission, or a combination, and are regulated by the Financial Industry Regulatory Authority and the Securities and Exchange Commission in the United States.