Consumer Information
For your convenience, the Financial Planning Association of Minnesota (FPA of MN) has developed material to provide you, the consumer, with unbiased, timely and pertinent information regarding the various aspects of your financial profile. The information below has been put together by the FPA specifically for your use.
What is Financial Planning?
Why do I need a financial planner?
Life events that might prompt you to seek the services of a planner
Questions to ask when choosing a financial planner
How do I choose the right financial planner for me?
What are the CFP® (CERTIFIED FINANCIAL PLANNER™) marks?
How do I contact a financial planner or obtain a membership directory?
Understanding Professional Designations
What is Financial Planning?
Financial planning is a long-term process of wisely managing your finances so that you can achieve your goals and dreams, while at the same time helping to negotiate the financial barriers that inevitably arise in every stage of life.
Why do I need a financial planner?
- Do you have the expertise?
- Do you have the time or desire to actively plan, manage and monitor the financial aspects of your life?
- A financial planner provides objective, third-party perspective on what may be emotional, difficult decisions.
- A financial planner provides “checks and balances” on an ongoing basis and ensures that you stay focused.
- A financial planner emphasizes follow through with your financial plans.
Life events that may prompt you to seek the services of a planner:
Often a specific event or need will trigger the desire for professional financial planning guidance. These include:
- Retirement planning including a rollover of an employer pension/qualified plan.
- Education funding.
- Protection of financial assets.
- Inheritance of a large sum of money.
- Caring for aging parents or disabled child.
- Death of spouse or family member.
- Business planning including buying, selling or passing on a family business.
- Charitable Giving.
Questions to ask when choosing a financial planner:
- What financial planning designations the planner holds and professional affiliations and memberships.
- Educational background and work experience.
- The planner's basic approach to financial planning.
- How the planner prepares a plan.
- How the planner may address your particular needs.
- Whether the planner or others will implement recommendations from the plan.
- Services the planner provides.
- Areas of specialization.
- Types of clients the planner serves, and any minimum net worth or income requirements.
- Licenses to offer certain financial products, such as life insurance or securities.
- How the planner is compensated for services, and the typical charges.
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How do I choose the right financial planner for me?
Choosing a financial planner is as important as choosing a doctor or lawyer. Working with a financial planner is a very personal relationship. You may want to interview at least three planners in person to find the right one to serve your needs.
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What are the CFP (CERTIFIED FINANCIAL PLANNER) marks?
The CFP certification is awarded to individuals who have successfully completed the certification requirements of the Certified Financial Planner Board of Standards, Inc. To obtain the CFP certification, the following qualifications must be met:
- Examination. An individual must successfully complete the CFP Board’s Comprehensive Certification Examination, which tests the individual’s knowledge on a multitude of key financial planning topics.
- Experience. An individual must acquire three to five years of financial planning-related experience prior to receiving the right to use the CFP marks.
- Ethics. An individual must voluntarily ascribe to the CFP Board’s Code of Ethics [need link] and Professional Responsibility. This voluntary decision empowers the CFP Board to take action if a CFP professional should violate the code of ethics. Such violations could lead to disciplinary action, including the permanent revocation of the right to use the CFP marks.
- Education. A CFP professional must obtain 30 hours of continuing education every two years in the body of knowledge pertaining to financial planning areas such as estate planning, retirement planning, investment management, tax planning, employee benefits, and insurance.
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How do I contact a financial planner or obtain a membership directory?
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You can search online by clicking on the Planner Search provided by the National Financial Planning Association.
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Click on the Planner Search (located at the top of the page or just above). There, you would have access to all Certified Financial Planners who belong to the FPA of MN. Some of the members also have up to two pages of background information (including fee schedule) available by double-clicking on their name. You are able to do a search by zip code, specialty or last name. If you'd rather work over the phone, call the toll-free hotline at 800.282.PLAN (7526).
Or you may want to ask for a referral from a reliable friend, family member or business associate who is working with a financial planner. Attorneys, accountants, insurance agents, bankers and other financial specialists may also be good sources because financial planners frequently work with them to carry out a client’s financial plan.
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