CPA? PFS? How to Determine What Type of Financial Planner You Need

In the world of financial planners, there are many titles and credentials to differentiate between the different types of financial planners. Some financial planners haven't received any training or accreditation while others have invested in years of financial planning-specific education and training, including post-gratudate degrees. When choosing a financial planner, it is important to understand the difference in order to most efficiently meet your financial needs.

A common type of financial planner is a CPA, or Certified Public Accountant. Financial planners who are CPAs have typically passed a rigorous set of exams, earned a bachelor's degree, and have extra training an education specialized in finance and business. The majority of states in the USA reserve the use of the title CPA or PA solely to those who meet these qualifications.

A CFP, or Certified Financial Planner, is similar to a CPA. Certified Financial Planners must have at least a bachelor's degree from an accredited university, they must pass a rigorous ten-hour exam, and they are required to fulfill further training, including continuing education courses and training. CFPs must also study and master a list of over 100 financial planning topics to become truly specialized financial planners.

Personal Financial Specialists are known as PFS. These financial planners are CPAs who have received additional financial training to be specialized in personal financial planning. This financial planner designation requires a minimum 1,400 hour experience in personal financial planning, passing a rigorous exam, and constant maintenance of training and education.

Other financial planners may not necessarily have specific training or education. Choose financial planners carefully and be sure to verify certifications and designations.

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