Many people do not understand what financial planning really is. Of course, it is is easy to blame the plethora of financial titles and designations out there. We have all heard them: financial advisor, broker, financial consultant, CFA, CFP, ChLU, etc. No wonder it is so confusing. But, all titling aside financial planning is really more than about investing or any other specific financial area. Sure, many financial planners have their specialty but a financial planners role is really to act as the "quarterback" of your team. Armed with broad based technical knowledge, their fundamental role is to follow a process to help you clarify and define goals, research and recommend solutions, recommend other specialized professionals, help you implement a plan, and assist with monitoring the plan. No where is there mention of financial products. Sure, financial products, specifically insurance, investment, or estate could be part of the process, but they are not by any means the beginning and end of a true financial planner. Be wary of those that lead with products or have the miracle financial system to help you realize all your financial dreams. In reality a financial planner is a confidant and coach that helps you clarify your goals and priorities and to help you sift through the financial landscape to find viable solutions for your personal circumstances. And, they can offer some accountability to if you need to be kept on track. So, before you hire or work with a financial professional in any capacity do your homework and educate yourself. The Financial Planning Association is a great place to start!
