Types of Financial Advisors
Certified Financial Planner (CFP)
This credential is awarded by the Certified FinancialPlanner Board of Standards to people who have at least three years of work experience infinancial planning, have completed an approved course of study, and have passed a twoday exam. Training focuses on financial planning, including taxes, investments, retirementplanning, estate planning, and insurance.
Chartered Financial Consultant (ChFC)
This credential is granted by the AmericanCollege of Bryn Mawr, Pennsylvania. Candidates for the ChFC must have completed a10-course curriculum and have worked in the financial services field for at least threeyears. Many ChFC candidates are insurance agents who have also earned the CharteredLife Underwriter (CLU), an advanced insurance credential, from the college.
Registered Financial Planner (RFP)
A person holding this credential also holds a CFP,a ChFC or both, and has passed further tests in insurance and securities.
Chartered Financial Analyst (CFA)
This credential is awarded by the CharteredFinancial Analyst Institute to investment professionals who have worked in the investment industry for three years and have passed all three yearly exams involving securitiesanalysis and professional money management.
Certified Public Accountant (CPA)
This credential is held by business accountants,some of whom specialize in personal tax planning and preparation. To become CPAs,candidates must pass a two-day exam administered by the American Institute of CertifiedPublic Accountants (AICPA) and meet state licensing requirements relating to workexperience and, in most states, special academic work. Some CPAs also earn thePersonal Financial Specialist (PFS) credential, which is also conferred by the AICPAbased on work experience in financial planning and successful completion of a PFS exam.
Registered Representative
This credential is held by securities brokers who havepassed mandatory basic exams given by the National Association of Securities Dealers, aregulatory body for the securities industry. Securities brokers recommend investments andexecute client orders to buy and sell securities such as stocks, bonds, options, and mutualfunds.
Registered Investment Advisor (RIA)
This credential is neither an indication ofexpertise nor a license to buy or sell securities. It merely indicates that an individual,or his or her employer, was required under federal securities laws to file (for a nominalfee) with the Securities and Exchange Commission or a state securities commission for alicense to dispense investment advice.
In the event that you would like to try to make income through investing , you ought to be sure to obtain a great deal of investor information and facts before you making any purchase or financial commitment. Many individuals are generally very successful at investing, but there are also many who fail with their first attempt simply because they did not search for the proper investor information before they dove in.
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