Readers can now depend on me saying “it depends.” While the Certified Financial Planner designation certainly is the most identifiable financial planning designation, there are other designations such as Personal Financial Specialist or a Chartered Financial Consultant held by accountants or stockbrokers and insurance agents. The answer can be “yes” if your adviser has proven experience in a broad range of financial matters such as estate and tax planning, insurance, retirement planning and investments, and takes a holistic approach to “financial wellness” rather than just their area of expertise. Ask how long they have been planning financial matters for their clients, how they stay current with new developments and how they are compensated for their planning time and work products. Many clients do choose to have a team approach to their financial planning: their CPA, their estate attorney, their investment or insurance adviser and their financial planner who pulls it all together to make sure their plan is comprehensive and up to date.

In order to truly manage all of your financial matters you need the services of several different professionals. Each individual has expertise in different areas, so really it is the coordination of their efforts that is critical. The gold standard certification of the financial planning industry is the Certified Financial Planner professional or CFP designation. The individuals who have earned this designation have successfully completed a series of graduatelevel classes encompassing the fundamentals of investment planning, retirement planning, tax planning, and estate planning and insurance planning. They have then successfully passed a 10-hour, two-day final exam and have a minimum of three years of experience in the financial services industry. Once accredited they are required to complete 30 hours of continuing education bi-annually to maintain their certification, often in addition to the 40+ hours of continuing education required to maintain their securities and insurance licenses. Your CFP should be the person who develops your financial plan, which includes planning for your life’s goals such as a college education for children, funding a new business, buying your dream home, planning for your dream vacation, planning for how to distribute your assets to generate a sustainable income stream during retirement and planning for how your assets will be distributed at your death. Your CFP should be helping you determine when you need the assistance of other professionals. Your financial team should consist of your attorney, who manages all of your legal needs; your accountant, who manages your taxes on an annual basis; your insurance agent, who manages your risk needs; and whether or not you need a stockbroker today is debatable given the ease of online buying and selling of stocks. Ultimately it is this team of professionals who are best positioned to assist you in your financial matters.

While your accountant, insurance agent and stock broker may have expertise in several areas of financial planning, they may not have the complete expertise to prepare a complete financial plan for you. It is always wise when doing your financial planning to use someone with the credentials that demonstrate that they have the competence to review your entire planning needs and make recommendations that help you meet your goals. There are many CFPs and ChFCs in the Frederick area that you can use for your planning needs. This does not mean that you have to replace your other professionals but it should give you the independent and professional advice that you need. To find a planner you can go to www.cfp.net/ and click on the search for a financial planner tab and find one in your area. Another good way to find a competent planner is to ask for referrals from your friends that may have had planning done and see if they were happy with the results.

The real question is can any one person, no matter what certification they have, plan “all” of your financial matters? The answer is no, and if any one person is making that claim you should be very leery. If someone is throwing the whole pan of spaghetti against the wall to see how many products or services they can sell you, don’t be surprised if the hair on the back of your neck stands up. However, it’s a good sign if you have an adviser who is focusing on say, tax planning, estate planning, insurance planning or investment management, and they identify other needs you have and suggest that you bring in an expert in that particular area. For example, your stockbroker thinks your portfolio has hit a level that may affect your estate tax liability and suggests you discuss the matter with your attorney because of its potential effect on transferring your wealth to your children when you die. Bottom line: I am completing my master’s degree in financial services, and I would never try to plan “all” aspects of a client’s financial matters.