So you’ve realized the importance of getting your financial affairs in order: planning your estate, considering investment strategies, and the rest. But where do you start?
You can go it on your own and use personal finance software packages, magazine articles, or books on the subject. Enlisting the help of professionals can also be a great help, but just a little searching will reveal that there is a wide variety of options to choose from.
The first place to start is to check into local free options. For example, four national non-profit organizations have joined together to offer free Financial Planning Days in many areas of the country. Visit the Financial Planning Days website to see if one will be offered in your area.
You can also opt to hire a professional to help; however, it’s important to understand the differences in financial planning services to choose the one that will work best for you. A deciding factor is what kind of financial planning you need help with.
Chartered Financial Analyst (CFAs) are usually investment-oriented, and are often portfolio managers or research analysts. They can be a good choice for helping with retirement, tax, and insurance planning.
Certified Public Accountants (CPAs) tend to specialize in things like tax returns and audits, and usually don’t give investment or other financial advice.
Personal Financial Planning Specialists are CPAs with additional qualifications, that allow them to deal in areas like estate, insurance, retirement, tax and other financial planning issues.
Certified Financial Planners (CFPs) can assist you with figuring out employee benefits, estate planning, insurance, investments, and other topics.
Chartered Financial Consultants (ChFCs) focus on finance and investing, and specialize in insurance-related financial planning.
Registered Investment Advisors (RIAs) provide investment advice, but their specialties can vary. You will need to interview RIAs in your area to determine if their services fit your needs. The advantage of hiring an RIA is that they are regulated in such a way that they work directly in the best interest of the client, and cannot legally recommend a certain investment because their firm will get a better commission.
This is just a brief overview of what’s available, but you will need to look specifically at who’s available in your area. Considering the type of services and fees is important, but like any relationship, rapport and trust are crucial, which is why you’ll want to talk personally with any financial planning professional to determine if you can establish a harmonious relationship with that person.