Frequently Asked Questions-What are Financial Planner Types-FAQ-Types of Financial Planner

Types of Financial Planner

If you hire a financial manager, they will look at your situation and help you make a budget and spending plan that will help you reach your goals. They can be limited or cover a lot of ground. Effective financial advice for goal achievement includes investment suggestions, debt reduction plans, and optimal asset allocation in retirement funds. Despite assisting clients in making investment decisions, some financial planners leave the final choices to their clients. This article will go into types of financial planner in detail and provide some examples for your convenience.

Without a detailed financial plan, it would be impossible to figure out when a business breaks even. Investors will look at the BEP to decide if they want to put money into your business. Additionally, HashMicro’s Financial Sector Accounting System comes with a number of features that, when combined, could make your daily tasks easier and make your customers happier right away. To learn more about ERP accounting, we suggest that you take the best ERP accounting software price structure, which has a lot of information about the software and all of its features. Advancing your education on benefits of financial planner can be achieved by reading more.

Types of Financial Planner

A common group on business teams is made up of financial planners. Sole owners may not be able to offer all kinds of services, but most of them are happy to work with other professionals to make sure you get exactly what you need. Check out these types of financial planner to broaden your knowledge.

Registered Agent

Should you need help with the basics of tax planning, an Enrolled Agent is the best person to help you. EAs don’t have the knowledge and experience in these areas that CPAs do. So, it’s best to hire a Certified Public Accountant (CPA) when you need help with complicated tax returns, business returns, or estate planning that needs to optimize taxes.

Registered Financial Planner

The Institute of Advanced Financial Planners gives this advanced certification in financial planning to people who deserve it. In order to get the RFP title, candidates must show that they are knowledgeable about financial planning and can put that knowledge to use. For RFPs, you have to do required professional development (CRM) tasks, have professional liability insurance, and follow a code of conduct.

Expert in Money Matters

The Certified Financial Planner Board of Standards awards the CFP title, which stands as the gold standard in the field. Certified Financial Planners (CFPs) have to meet strict academic and professional standards and also keep learning and improving their skills through ongoing education and training. The Board’s Standards of Conduct spell out specific moral rules, behavior expectations, and practice standards that they must follow. Law mandates that financial planners holding the CFP title must always prioritize their clients’ needs.

Certified financial planners assist clients with spending, investing, debt management, and retirement planning. Financial advisors have a moral duty to prioritize clients’ needs over their own potential financial gain. To attain the CFP title, a bachelor’s degree, courses from a CFP Board-recognized university, passing the Board Exam, and 4,000 hours of apprenticeship or 6,000 hours of professional experience in financial planning are required. In this way, getting a CFP certification is like passing one of the toughest tests in the business world.

Chartered Public Accountant

In spite of this, not all accountants are Certified Public Accountants. The most important difference is in the schooling and work experience needed to get the CPA designation. Eligibility requires a bachelor’s degree with specified business and accounting semester units, passing the Uniform CPA examination, a professional ethics exam, and a year of supervised work as a general accountant under an active CPA. People look up to certified public accountants (CPAs) because they do so many things for businesses and people. In addition to tax planning and return preparation, these services include investing, financial planning, tax preparation, and mergers and acquisitions.

Chartered Financial Consultant

As an alternative to the Certified Financial Planner credential, this title recognizes advisors who have met additional education requirements in areas such as investment management, special needs and non-traditional family planning, estate and insurance planning, and more. Additionally, they are expected to act in a trustworthy way. The requirements for the ChFC credential are more rigorous than those for the CFP. You must successfully complete nine college-level courses, but you do not have to pass a comprehensive board test. Lam-Balfour notes that ChFC, an alternative to CFP, offers relevant credentials for advisers providing comprehensive financial planning and advice.

Specialist in Personal Finances

Personal Financial Specialist (PFS) is a “add-on” title that CPAs can get from the AICPA. This program caters to Certified Public Accountants (CPAs) who aim to augment their understanding of financial planning within the scope of their profession. It requires either two years of related work experience or college coursework. Financial pros in Professional Financial Services must maintain a CPA license and adhere to strict education and PFP Service criteria. PFS financial managers, often CPAs, are excellent for tax and accounting assistance.

An Independent Financial Planner

Financial managers who are fiduciaries are required by law to put their clients’ needs ahead of their own. Because they have a duty to their clients, financial advisers must always put their clients’ needs ahead of their own. In order to be paid, a fiduciary financial adviser must always provide the best services at the most reasonable prices, no matter who pays them (client or third party).

Some investors only care about how good their financial advisors are at what they do. When a financial planner or adviser gives advice, it should make sense. However, they might push for more expensive options to increase their commissions. When you hire a responsible financial advisor, you can be sure that the advice they give you will be in your best interests, not their own.CFP

Chartered Financial Analyst

The only group that can give the CFA certification is the CFA Institute. To become an advisor, you have to pass three tests and meet strict standards for your education and work experience. It takes a lot of time and work to become a Chartered Financial Analyst (CFA). People who have earned this designation are experts in their fields. People who hold a CFA may no longer need them because the CFA Institute does not require ongoing education. Check to see what kind of CPE a CFA takes part in before hiring them.

CFAs analyze investments for entities like insurance companies, banks, universities, and mutual funds. Earning the CFA designation involves passing exams, gaining work experience, securing references, and applying for CFA Institute membership.


Chartered Mutual Fund Counselors and Certified Fund Specialists can help you choose the best mutual funds for your financial plan. The Certified Fund Specialist possesses extensive knowledge about mutual funds and must continually update this information through ongoing education. After one year, you don’t have to re-certify as a Chartered Mutual Fund Counselor after finishing the training at the College for Financial Planning. You can get good help from both of them because they know a lot about mutual funds. There are various types of financial planner, such as Certified Financial Planners (CFPs), Chartered Life Underwriters (CLUs), and Chartered Financial Consultants (ChFCs).

Chartered Life Underwriter

Experts in life insurance and estate planning often have the CLU title. To earn the CLU designation, students take classes in life insurance, law, estate planning, and business. Most financial planners have basic estate planning knowledge, but CLUs take extra classes to better assist clients. Tiffany Lam-Balfour, an investment representative for NerdWallet, notes that the CLU title is given to advocates with a deep understanding of life insurance. Life insurance is an important part of planning your future for business, personal, and family reasons. Seeking advice from a CLU-designated advisor can help you weigh all of your choices if your financial plan calls for more than just life insurance. The rsquo;

Certified Employee Benefits Expert

The person who is certified as an employee benefit specialist knows a lot about how to manage and sell employee benefits. One great thing about them is that they can help you with things like health insurance and 401(k)s. CEBS is mostly interested in benefit plans offered by employers. They know a lot about saving for retirement, insurance, and rules and regulations. A CEBS is a great place to start when you want to learn more about additional insurance benefits. Talk to your CFP about their CEBS certifications if you need more detailed financial advice.


How do i Find a Good Financial Advisor? what Questions should i Ask?

When interviewing potential financial advisers, it’s important to find out how much they charge, how long they’ve been in the business, and what areas of finance they specialize in. It’s a good idea to find out how long typical exchanges with clients last, whether they happen over email, the phone, or in person.

How do Planners of Money Get Paid?

Consultants and planners who work in the financial field usually get their money from commissions or fixed fees. Fee-only financial advisors receive compensation through a predetermined amount for their services, without earning commissions on the goods they trade or sell.

How do i Get in Touch with a Financial Advisor who Charges by the Hour?

A financial advisor may charge a set fee, an hourly rate, or a percentage of the funds they are in charge of. The National Association of Personal Financial Experts (NAPFA) website features directories and databases where you can search for fee-only financial experts. Some of them might charge by the hour.

Last Thoughts

Not only will a good financial planner help you get rich, but they will also help you reach your goals, lower your insurance costs, reduce your risk, and hit other important financial milestones. Thank you for reading the guide on types of financial planner. Explore the website to keep learning and developing your knowledge base with additional useful resources.

Scroll to Top