Whether you are planning for retirement or simply creating a personal budget we usually get help from an expert who can offer some advises. However, note that every person’s financial situation is unique thus the services of a specialized financial professional is required. A Financial Adviser is a person who helps anyone manage their money. This title is a general descriptor.
Designations given to financial advisers:
- Stock Broker. These are people who buy and sell stocks and other securities on behalf of clients usually for a fee or commission.
- Certified Financial Planner. They make use of holistic approach for a person’s financial situation. They would give advice on estate planning, retirement planning, insurance needs and personal finances. This is the most common designation.
Requirements to be a CFP:
- Hold strict ethical and performance standards
- Required to have financial planning experience and pass a board exam
3. Investment Advisor. They are specialized financial professionals. Their role is to build investment portfolio based on goals, timeline, and risk tolerance. These tools will help build, manage and transfer wealth.