Question

What type of financial professional should you consult with for achieving personal financial goals? Would a Certified Public Accountant (CPA) be an appropriate professional, or would someone with a different financial professional designation be more appropriate? If so, which professional designation would be more appropriate and why? Finally, can a person just do his or her own financial planning without consulting a financial professional? Answer these questions in up to 400 words or more (50) points!

Answer 1

Certified Financial Planner (CFP) are usually used for general financial advice. They are the most preferred and versatile kind of financial advisor as they are able to assist you almost on any financial issue. These issues can include investments related advice, tax advice,financial budgeting for achieving personal financial goals. Thus, one should prefer a CFP for a comprehensive review of the personal situation.

Not every CPA will be qualified or appropriate to do financial planning. However, of late, many CPA's are offering financial planning as one of their diversified suite of services. Thus, they are the recommended choice only if one has complex accounting issues so that only one person has to be dealt with.

The appropriate professional designations are:

Certified Financial Planner (CFP): For general financial advice

Chartered Financial Consultant (ChFC): For general financial advice

Certified Public Accountant (CPA) and Personal Finance Specialist (PFS): Tax experts with a finance background

Chartered Life Underwriter (CLU): Focused on insurance

A person can definitely do his / her own financial planning if he has faith in his own abilities to evaluate his goals and deciding on the investments. The factors to evaluate include knowledge of investments/ financial instruments and wealth management However, if one reaches a point in which he/she is constantly under the fear of making a mistake with investments/budgeting, then one needs professional advice.