It is common nowadays for people to turn to financial help online rather than hire an actual professional in the field of financing. This is because these days anybody who desires to can refer to themselves as a financial advisor .How do you guarantee that the person you are talking to is actually a financial advisor as indicated in his/her business card?
According to CFP Board’s CEO, Kevin Keller, anyone can assume the title financial advisor therefore it is a burden on the consumers’ shoulders to determine whether the person is actually an expert in the field. Financial advising encompasses different industries therefore someone who claims to be a financial advisor might actually be selling insurance products while others offer holistic financial advices but they charge with certain professional fee. A financial advisor can actually be an investment broker therefore it is safe to say that financial planning or advising has a broad meaning.
To make sure that you hire the appropriate financial advisor for your financial needs, there are a few things to check. Mainly, ask for credentials. According to the Financial Industry Regulatory Authority, there are over 180 professional designations that cover financing. Keller clarified that not all credentials are the same therefore make sure to check.
When searching for a certified financial planner also known as CFP, one can determine that their level of education and ethics are not the same. These professionals have undergone an exam before they are awarded the title CFP. There are other credentials consumers should know about such as chartered financial analyst also known as CFA and certified public accountant or more commonly referred to as CPA. According to a certified financial planner, Frank Pare, the latter two should be presented along with a CFP in order for a professional to be held under the fiduciary obligation of a certified financial planner.
Conducting an interview and asking the right questions is another way to screen each person claiming to be a financial adviser. There are also financial help online in case one finds that searching for an actual certified financial planner gets too complicated.