If you are thinking of seeking the advice of a financial professional but you are not quite sure where to start, here are some commonly asked questions about financial planning that may get you on your way.

Who is a "financial adviser" and is this different from a "financial planner"?

The government generally does not regulate who can call themselves a financial adviser; therefore, anyone can use that term. What the government does regulate are the services that financial advisers and financial planners provide. The term "financial planner" implies a higher level of trust and professional qualifications and in some states there is greater regulation when this term is used. "Financial adviser" is a more general term and is often an appropriate general description of someone who gives financial advice.

The term CERTIFIED FINANCIAL PLANNER™, or CFP®, means even more specific things about a person's qualifications to provide financial advice. The CERTIFIED FINANCIAL PLANNER™ Board of Standards was founded in 1985, and is a nonprofit certifying organization that benefits the public by fostering professional standards in personal financial planning.

CFP® Certification Standards: The Four E's

1. Education: CFP® practitioners must complete a set of financial planning courses.
2. Examination: CFP® practitioners must pass a wide-ranging two-day, 10-hour certification exam.
3. Experience: An individual must have at least three years of experience in the financial planning process and a university degree.
4. Ethics: CFP® practitioners submit to a background check by the CFP® Board and agree to adhere to a rigorous Code of Ethics and Professional Responsibility and Financial Planning Practice Standards. In addition to other requirements, CFP® practitioners are required to renew their certification every two years, which includes completing a minimum of 30 hours of continuing education. Other professionals such as lawyers and CPAs have similar continuing education requirements.

What does  this mean to the client of a CERTIFIED FINANCIAL PLANNER™ professional? It means the person you have chosen to advise you and guide you is knowledgeable about the issues and processes of financial planning and can go beyond facts and figures to develop an understanding of your needs to help you achieve your goals. The next step is to interview to find one with whom you feel most comfortable. This involves personal chemistry as much as it is an evaluation of capability.

Why should I choose a CERTIFIED FINANCIAL PLANNER™ over another type of financial adviser?

In general, if you're not sure what advice you need, start with a financial planner. A financial planner will focus on your needs first before recommending a course of action. Most planners have been trained to take a broad look at your financial situation, while accountants, investment advisers, stockbrokers, or insurance agents may focus on a particular area of your financial life.

What is the best age to start financial planning?

While it is true that the younger you start the more beneficial the process will be, financial planning is worthwhile at any age. Younger people have more decisions to make regarding their financial lives. Changing laws and circumstances can lead middle-aged people and seniors to have to adjust their financial plans. Changes in tax law, for example, may require many people to rethink certain investments and estate plans. And, adequate disability and long term care planning becomes more important as people age.

Estate Planning, Wealth Accumulation, and Protection Telephone: (804) 935-8510 ● Secondary Telephone: (804) 364-5071 Fax: (804) 364-6387 ● E-Mail Us
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Virginia estate planning attorney Robin S. Gnatowsky, CFP,® is a CERTIFIED FINANCIAL PLANNER™ practitioner, a certified public accountant (CPA), and an attorney focusing on financial planning, tax planning and estate planning. Richmond ● Glen Allen ● Midlothian ● Virginia Beach ● Virginia ● Florida ● Maryland ● Washington, DC