If you're going to put your future into the hands of a financial planner, put it into the hands of a certified financial planner
You're whole future is at stake when you're planning what you will do with the money you earn. You work hard for that money; you work around the clock, even though it appears you're relaxing. You have only so much time to earn, yet your hopes will require more money than you can earn in the time you have. You've heard that money can make money: the stock markets, bonds, insurance, business investments. That's what you want to do, make your money work for you, earn what you simply don't have the hours in your life to earn. You're not a financial wizard; you know your work, but you don't know finance. There are others who do, and you've heard the smartest option you have is to consult one of these experts in personal finance, a financial planner.
What! Put your money into the hands of another, you say? That sounds like some pretty risky business. What assurances do I have that this planner isn't a rip-off? Yes, you can check the planner's references. Others may attest to the quality of the planner's work, but don't forget how, recently, billions were invested by trusting investors in a man who was a financial giant, investments that went into a Ponzi scheme with little or nothing gained for the trusting investors. Reputation is a good indication a financial planner is worth his salt, but if you want more, want to know that this planner has everything at his fingertips, you'll require that the planner you choose be a certified financial planner.
Stories abound of planners who planned only for their own profit, but little or nothing for their client. You also hear how others trusted a financial planner, put their cash into his hands, only to find that the plan didn't work. It wasn't that the planner was dishonest; the planner simply didn't know financial planning. Among these incompetent planners, it is unlikely that any of them was a certified financial planner. To be a certified financial planner, they would have had to pass a careful scrutiny of their education, knowledge, and experience by a recognized certifying organization in order to hold the certificate. That's the purpose of certifying someone as a financial planner to validate that person as someone competent in the field.
Before you settle on your financial advisor, ask to see his certification. In the United States, one of the well-honored certifying authorities is the International Board of Standards and Practices for Certified Financial Planners, Inc., (IBCFP). This non-profit organization issues its trademark CERTIFIED FINANCIAL PLANNER's certificate, which it has issued since 1985. Located in Washington, D.C., the CFP board issues certificates to those who pass a rigid set of requirements in education, knowledge, and ethical behavior. Examinations qualify the recipients, and these are not easy. You can rest assured, if your certified financial planner has one of these certificates, he is a competent one.
Another trustworthy certification for financial advisors is the internationally recognized Registered Financial Planning Institute, which issues a Registered Financial Planners certificate to qualifying individuals. If your prospective planner has such a certificate, you can depend on him being competent in the field.
As well as being a certified financial planner, your planner may also have other licenses and certificates, such as in investments, real estate, insurance, that further qualify him. Ask to see all his certificates before you commit. You can never be too sure when it comes to your financial future. Trust is fine, but verify.