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I am privileged to have had great bosses and a job that doesn’t require me to go into the office everyday. I am also lucky to have had a mother teach me how important it is to save money. Reports are showing that there won’t be any social security available for my generation, ‘Gen Y’. While this unfortunate, if you have been following the economy at all, you would know it’s wise to invest your money. I just don’t know how smart it is to invest in a 401k when by the time I reach retirement age; the factors will be the same. Since I am not currently a full-time employee receiving benefits, I have thoroughly thought about opening an IRA, individual retirement account. If I had a 401K, I would be able to potentially set aside a certain percentage of my paycheck that may be matched by my employer. Since I’m not yet at that stage yet, financial planning seems the wisest move for me and the majority of my generation.

Seeking a financial advisor, will allow me to sort the best options. Should I invest in the stock market? If so, what shares should I buy? How much of my paycheck should I invest? And so on. Retirement planning isn’t to be taken lightly; however, when you’re fresh out of college, it’s not exactly a main priority for all graduates. Kalamazoo financial advisors help educated working Americans on their investment options. If you are self-employed or plan to be, there are also options for retirement. I have only recently started researching my potential options. So far I have read that about 3-5% is a good amount to invest from each paycheck. At the same time, it’s how much you make that determines that percentage.

Wealth management isn’t a skill that everyone possesses. I have plenty of friends who don’t spend money wisely or think about the future of their finances. Financial counseling of any sorts is a good idea when you get your first “big kid job” or if you’re beginning to realize it’s time to start saving or investing. This will help you setup a plan that works for you and your income. Retirement planning is only one step in planning your financial future. What are you future goals? Do you want to buy a house or pay for your children’s college? These are important goals that most workers strive to meet. Educating yourself on your financial position will help you save for the future.

Certified Financial Planner (or CFP) is an internationally recognised and highly prestigious qualification for financial advisers all over the world. In the UK it is awarded by the Institute of Financial Planning (IFP). It must not to be confused with the Certificate of Financial Planning, which is currently the minimum qualification for financial advisers.

Advisers in the UK must satisfy rigorous requirements before they can become Certified Financial Planners.

• They must have passed relevant advanced examinations. For example they require the Chartered Institute of Insurance (CII) Diploma in Financial Planning or its predecessor, the Advanced Financial Planning Certificate, with passes in specified subject areas, to ensure that they have in depth technical knowledge over a broad range.
• They require at least three years’ relevant experience.
• If the above conditions are fulfilled, they must have worked on a case study to produce a detailed financial plan of a sufficiently high standard to be passed by the IFP examining board. They must be members of the IFP, abide by a strict code of ethics, and commit to continuing professional development (CPD).

CFP professionals have not only proven, in depth technical knowledge in a broad range of subjects; they have also been trained to the highest level in the practical aspects of financial planning. Financial advisers who are qualified to this level are head and shoulders above the average financial advisers in the UK. They have made a commitment of both time and money to achieve qualifications far beyond the statutory requirement for financial advisers.

Why would they do that? Well certainly not for the fun of it. They have done it in order to be able to give the best possible advice and service to their clients. Being a CFP professional is a way of working rather than just proof of examination prowess.

Sadly many people do not even aware Certified Financial Planners exist, let alone realise how highly qualified they are. If you are looking for financial advice, doesn’t it make sense to find the best financial adviser? Well, of course it does!

Although only a small, elite minority of financial advisers are CFPs, they are located around the UK so you will almost certainly be able to find one near you who will be able to help you with your financial planning.

There are several different types of financial advisers in the UK and, if you are currently looking for financial advice, it is important to you that you understand the main differences between them. Just as not all medical professionals are the same – there are paramedics, auxiliary nurses, nurses, GPs, registrars and consultants, for example – neither are all financial advisers the same!

Types of Financial Advisers

There are three main categories:

1. Tied advisers, who usually work for a bank or an insurance company. They are only authorised to advise you on their own company’s products;
2. Multi-tied advisers, who are able to offer advice from a limited set panel of companies;
3. Independent financial advisers (IFAs) who will offer you unbiased advice from the whole of the market.

The Importance of Independent Financial AdviceIFAs differ from tied and multi-tied advisers, not only because they offer whole of market advice, but also because they do not represent a company – they act as the representative of their client, and it is their primary responsibility to act in the best interest of their client at all times. IFAs must also offer clients the option to pay by fee, rather than commission from the product provider.

Once an IFA has carried out a detailed fact find with you, so that he (or she) can fully understand your current financial situation, as well as your financial needs and objectives, he will go away and do some research to find the most suitable financial products for you. He will then present his recommendations to you at a follow-up meeting.

Qualifications

Minimum qualifications: All advisers giving investment advice must have the minimum qualifications of the Certificate in Financial Planning (CertPFS) or its predecessor the Financial Planning Certificate (FPC) from the Chartered Institute of Insurance (CII), or the Certificate for Financial Advisers (CeFA) from the IFS School of Finance.

Higher qualifications: By the end of 2012 advisers who wish to continue to give investment advice must have achieved higher qualifications – either the Diploma in Financial Planning (DipPFS) from the CII, or the Diploma for Financial Advisers (DipFA) from the IFS. Roughly one third of all financial advisers in the UK are currently qualified to this level already. The others are studying hard!

Certified Financial Planner: This is an internationally recognised qualification for financial advisers all over the world. In the UK it is awarded by the Institute of Financial Planning (IFP). To become a Certified Financial Planner (CFP) a financial adviser must first hold the DipPFS, or equivalent qualification, must have at least three years’ relevant financial services experience and must have worked on a case study to produce a detailed financial plan of a sufficiently high standard to be passed by the IFP examining board. They must be members of the IFP, abide by a strict code of ethics, and commit to continuing professional development (CPD).

Chartered Financial Planner: To become a Chartered Financial Planner – the pinnacle of the financial planning profession – an adviser must be a member of the Personal Finance Society (PFS), have a minimum of five years’ relevant experience and commit to continuing professional development. He or she also has to gain the CII Advanced Diploma in Financial Planning, which is the highest qualification currently awarded by the CII to financial advisers. The CII operates a points system for its Financial Services exams. For example you must achieve 70 points to be awarded the Certificate in Financial Planning and a further 70 points to be awarded the Diploma in Financial Planning, making a total of 140 points. However, to be awarded the Advanced Diploma in Financial Planning the candidate has to gain 290 points – more than four times the minimum requirement for financial advisers!

CFPs and Chartered Financial Planners are the elite of the financial planning profession. They have demonstrated, not only advanced technical knowledge and financial planning expertise, but also an exceptionally high level of commitment to their clients by the time and money they have spent in attaining their qualifications to enable them to give the highest level of advice.

Do financial advisers’ qualifications matter? Certainly there are many excellent advisers who do not have higher qualifications (yet). However, if you had a serious illness, you would expect your doctor to refer you to a highly qualified and experienced consultant would you not? CFPs and Chartered Financial Planners are like the consultants of the financial planning profession and the good news is that, unlike in the medical profession, you can consult them directly.