Financial Planning
Whether as an individual or as part of a business or organization, virtually everyone has to learn about and participate in financial planning at some point in life. Not everyone, though, is knowledgeable about economic concepts, financial rules and regulations, and calculation processes. For this reason, many businesses and individuals choose to seek the help of financial planners.
Financial planners are usually people who have a bachelor’s level or higher degree in finance, accounting, or a related field and make their living by helping others plan and budget their money. While everyone who takes classes on these topics and concepts will generally learn the same things, they may have their own specific work and style preferences, although variations are limited because if all financial planners worked with different standards and made different forms of statements, comparison and real world use of money would be impossible. This is why generally accepted accounting principles are used and boards exist to certify that trained and educated financial planners work the same way, produce the same documents, and have a universally understood sort of financial language. Using certified financial planning is also important because you can be assured that anyone who has met certification standards will be ethical and responsible to you as a client.
Certification
The Certified Financial Planners Board is a professional organization whose purpose is to foster professional standards in personal financial planning so that individuals and businesses value, have access to, and benefit from competent and ethical financial planning. In order for someone to practice certified financial planning as it meets the standards of this organization, he or she will be initially required to have an accredited education, pass a standard examination, have a reasonable amount of financial planning experience, and practice in a professionally ethical way. Ongoing requirements for certification include periodic ethics training, and certified planners will be subject to the enforcement of standards.
Finding a Planner
Obtaining certified financial planning for your personal accounts or for your business should be done carefully. If you take the time to find a planner who is certified and experienced, you will feel better about leaving your finances in that person’s hands, and the chances of any unexpected unethical issues will be greatly reduced.
Finding a planner in your area can be done by searching with the help of such agencies as the Financial Planning Association, the National Association of Personal Financial Advisors, the American Institute of Certified Public Accountants’ Personal Financial Planning Division, and the Society of Financial Service Professionals.
Researching the history of a financial planner to make sure that he or she has no unethical or illegal incidents in his or her past can be done through the Certified Financial Board of Standards. How much research you do on the financial planner you are considering hiring is up to you, but it is never a bad idea to make sure that you are getting the highest quality of service you can since you are going to be paying for and expecting the assurances of certified financial planning.
By Kristin Cleveland