Your financial advisors designation has the ability to tell you a lot about his educational background. The designation can denote backgrounds in various areas of finance, business, insurance, accounting, and law. Common designations in the financial planning field are ChFC (Chartered Financial Consultant), CFP (Certified Financial Planner), CLU (Chartered Life Underwriter), JD (attorney), or CPA (Certified Public Accountant).
Remember, background is only one of the necessary criteria for selecting a financial planner.
By way of example, many assume that a CPA has far greater knowledge in the area of income taxation than other financial professionals. What most do not know is that the CLU exam has more questions in reference to taxation than does the exam the CPA is required to take.
The CFP designation is a more widely recognizable designation than is the ChFC. This is in part due to better marketing for the CFP. The ChFC designation requires more courses and has more rigorous exams than does the CFP.
Even areas of specialty don't mean everything. CPAs, for example, major in accounting. College accounting courses take a historical perspective. They look at recorded historical data -- which the CPA then records, puts on a form, and prepares as a financial statement or a tax return. Every business owner should have a good CPA who can assist with financial statements and money management.
The problem is that they are seldom able to take a future driven approach. That is the difference between a CPA and a financial planner. Even colleges recognize that the accounting program is different than the finance program. The financial planner takes a proactive, analytical, and long-term strategic approach. They are not reactive to the data, but influence the direction the data will take.
The worst financial advice comes from journalists. They are notorious for describing an extreme market position, emphasizing the sensational in order to sell magazines. In my view, journalists are more concerned with making a story than reporting one. Seldom do I read the complete facts as given to the reporter, but rather a hazy half-truth intended to make a warped yet sensational point. Seldom do I find good judgment.
A designation can be helpful in determining your financial planner's background, but don't get lost in the false assumption that a designation represents expertise.
Remember, background is only one of the necessary criteria for selecting a financial planner.
By way of example, many assume that a CPA has far greater knowledge in the area of income taxation than other financial professionals. What most do not know is that the CLU exam has more questions in reference to taxation than does the exam the CPA is required to take.
The CFP designation is a more widely recognizable designation than is the ChFC. This is in part due to better marketing for the CFP. The ChFC designation requires more courses and has more rigorous exams than does the CFP.
Even areas of specialty don't mean everything. CPAs, for example, major in accounting. College accounting courses take a historical perspective. They look at recorded historical data -- which the CPA then records, puts on a form, and prepares as a financial statement or a tax return. Every business owner should have a good CPA who can assist with financial statements and money management.
The problem is that they are seldom able to take a future driven approach. That is the difference between a CPA and a financial planner. Even colleges recognize that the accounting program is different than the finance program. The financial planner takes a proactive, analytical, and long-term strategic approach. They are not reactive to the data, but influence the direction the data will take.
The worst financial advice comes from journalists. They are notorious for describing an extreme market position, emphasizing the sensational in order to sell magazines. In my view, journalists are more concerned with making a story than reporting one. Seldom do I read the complete facts as given to the reporter, but rather a hazy half-truth intended to make a warped yet sensational point. Seldom do I find good judgment.
A designation can be helpful in determining your financial planner's background, but don't get lost in the false assumption that a designation represents expertise.
About the Author:
Hank Brock is president of Brock and Associates, LLC, a firm specializing in retirement, estate, tax, and business planning. For more detailed information on selecting a financial planner, visit us online.
1 ความคิดเห็น:
Don’t forget join for|to join|to enroll in} a Sweet Rewards™ Card to earn factors for promotions, rewards and different candy treats every time you go to. The primary program executed by the game is the working system. According to the Gambling Statistics on on line casino.org, 48% of on line casino visitors within the US played slots. In addition, with the rise of on-line slot gaming, more and more players are gaming on their smartphones and desktops. I-Slots are interactive slot games that add more pleasure for players. As a end result, i-slots are more 카지노 engaging for the younger generations used to enjoying in} video games.
แสดงความคิดเห็น