By Investment U Research Team For some people, it doesn’t make sense to try and go it alone financially. If you’re too busy or mathematically challenged to manage your own assets, a finance professional can help you plan your future.
There’s probably no shortage of financial professionals in your area – no matter where that is. But finding the right kind of help can be tricky.
That’s because financial advice is a very broad field encompassing dozens of jobs and titles. There are CFAs, CFPs, AFCs, CPAs… the list goes on. It can be tough to navigate this alphabet soup and figure out which kind of professional is right for your situation.
That’s why we’ve put together this handy guide to the different types of finance professionals. Below, we’ll explain the differences between the various job designations.
Coaches and Counselors
Financial coaches and counselors might have less prestigious titles than CFAs and lawyers. But that doesn’t mean they’re less valuable. A coach or counselor might be exactly the right kind of finance professional for your situation. And in many cases, they’re a lot cheaper than their long-titled counterparts.
Accredited financial counselors (AFCs) and chartered retirement planning counselors (CRPCs) are specialized advisors. They help people meet specific financial goals.
AFCs tend to focus on debt counseling, budgeting and other issues pertinent to low-income people. CRPCs, as the title implies, focus on individual retirement advice. This includes helping people invest and save for retirement. But CRPCs can also provide advice on paying for healthcare, estate planning and other aging-related issues.
Both types of counselors go through rigorous accreditation processes. They have to pass an exam and complete a minimum number of hours of work experience. So you can rest assured that an AFC or CRPC is well qualified. However, as we mentioned before, most counselors specialize in a specific kind of financial advice. Make sure that a prospective counselor works in a field that’s relevant to you.
Financial coaches or “money coaches” generally have a much broader job description. They can help you with almost any facet of your finances. Whether you want to reduce your spending or reduce your estate tax liabilities, there’s probably a coach for that.
Coaches are often more flexible than counselors. But unlike counseling, the field of coaching is unregulated. There are no centralized standards for who is allowed to call themselves a coach. So make sure you carefully research any financial coach before hiring them.
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Planners and Consultants
Next up in the financial advisor hierarchy are the planners and consultants. These titles require a bit more training than the coaches and counselors. That’s because their jobs are more intensive.
Certified financial planners (CFPs) help clients meet a wide range of financial goals. They often provide investment advice for people who are planning for major life events. These can include sending kids to college, retiring and large wealth transfers.
Chartered financial consultants (ChFCs) are quite similar to CFPs. But their jobs are slightly more technical. ChFCs often have expertise in insurance, taxation and other financial niches.
To get accredited, financial planners and consultants have to complete hundreds …read more
Source:: Investment You
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