Consumer Information
For your convenience, the
Financial Planning Association of North East Ohio (FPA of NEO) has
developed material to provide you, the consumer, with unbiased,
timely and pertinent information regarding the various aspects of
your financial profile. The information below has been put together
by the FPA specifically for your use.
What
is Financial Planning?
Why do I
need a financial planner?
Life
events that might prompt you to seek the services of a
planner
Questions
to ask when choosing a financial planner
How do I
choose the right financial planner for me?
What are
the CFP® (Certified Financial
PlannerTM) marks?
How do I
contact a financial planner or obtain a membership
directory?
What is
Financial Planning?
Financial planning is a long-term
process of wisely managing your finances so that you can achieve
your goals and dreams, while at the same time helping to negotiate
the financial barriers that inevitably arise in every stage of
life.
Why do I need a
financial planner?
- Do you have the expertise?
- Do you have the time or desire to actively plan, manage and
monitor the financial aspects of your life?
- A financial planner provides objective, third-party
perspective on what may be emotional, difficult decisions.
- A financial planner provides “checks and balances” on an
ongoing basis and ensures that you stay focused.
- A financial planner emphasizes follow through with your
financial plans.
Life events that may
prompt you to seek the services of a planner:
Often a
specific event or need will trigger the desire for professional
financial planning guidance. These include:
- Retirement planning including a rollover of an employer
pension/qualified plan.
- Education funding.
- Protection of financial assets.
- Inheritance of a large sum of money.
- Caring for aging parents or disabled child.
- Death of spouse or family member.
- Business planning including buying, selling or passing on a
family business.
- Charitable Giving.
Questions to ask when
choosing a financial planner:
- What financial planning designations the planner holds and
professional affiliations and memberships.
- Educational background and work experience.
- The planner's basic approach to financial planning.
- How the planner prepares a plan.
- How the planner may address your particular needs.
- Whether the planner or others will implement recommendations
from the plan.
- Services the planner provides.
- Areas of specialization.
- Types of clients the planner serves, and any minimum net worth
or income requirements.
- Licenses to offer certain financial products, such as life
insurance or securities.
- How the planner is compensated for services, and the typical
charges.
How do I choose the
right financial planner for me?
Choosing a financial
planner is as important as choosing a doctor or lawyer. Working with
a financial planner is a very personal relationship. You may want to
interview at least three planners in person to find the right one to
serve your needs.
Top
What are the
CFP® (Certified Financial PlannerTM)
marks?
The CFP® are
awarded to individuals who have successfully completed the
certification requirements of the Certified
Financial Planner Board of Standards, Inc. To obtain the
CFP® certificate, the following
qualifications must be met:
- Examination. An individual must
successfully complete the CFP Board’s Comprehensive Certification
Examination, which tests the individual’s knowledge on a multitude
of key financial planning topics.
- Experience. An individual must acquire
three to five years of financial planning-related experience prior
to receiving the right to use the CFP marks.
- Ethics. An individual must voluntarily
ascribe to the CFP Board’s Code of Ethics [need link] and
Professional Responsibility. This voluntary decision empowers the
CFP Board to take action if a CFP® professional should violate the
code of ethics. Such violations could lead to disciplinary action,
including the permanent revocation of the right to use the CFP
marks.
- Education. A CFP® professional must obtain 30 hours of
continuing education every two years in the body of knowledge
pertaining to financial planning areas such as estate planning,
retirement planning, investment management, tax planning, employee
benefits, and insurance.
Top
How do I contact a
financial planner or obtain a membership
directory?
|
You can search online by clicking on the Planner Search
provided by the National Financial Planning
Association. |
 |
Or you may want to ask for a referral from a reliable friend,
family member or business associate who is working with a financial
planner. Attorneys, accountants, insurance agents, bankers and other
financial specialists may also be good sources because financial
planners frequently work with them to carry out a client’s financial
plan.
FPA can provide a list of financial planning professionals in
your area. You can request a directory of FPA of North East Ohio members
by:
- Emailing the North East Ohio FPA office at fpaneo@aol.com
- Calling the North East Ohio FPA office at 440-899-5055
- Calling the toll-free hotline at 800.282.PLAN (7526)
Top
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