Financial Advisers Who May Work With You

In addition to being qualified to provide you with general financial planning services, many financial planners are also registered as investment advisers or hold insurance or securities licenses that allow them to buy or sell products. Other planners may have you use more specialized financial advisers to help you implement their recom-mendations. With the right education and experience, each of the following advisers could take you through the financial planning process. Ethical financial planners will refer you to one of these professionals for services that they cannot provide. Similarly, these advisers should refer you to a planner if they cannot meet your financial planning needs.

Accountant
Accountants provide you with advice on tax matters and help you prepare and submit your tax returns to the Internal Revenue Service. All accountants who practice as Certified Public Accountants (CPAs) must be licensed by the state(s) in which they practice.

Estate Planner
Estate planners provide you with advice on estate taxes or other estate planning issues and put together a strategy to manage your assets at the time of your death. While attorneys, accountants, financial planners, insurance agents or trust bankers may all provide estate planning services, only attorneys can prepare legal docu-ments such as wills, trusts and powers of attorney. Many estate planners hold the Accredited Estate Planner (AEP) designation.

Financial Planner
Click here for a description. Many financial planners have earned the Certified Financial Planner® or CFP® mark, or the Chartered Financial Consultant (ChFC) or Personal Financial Specialist (CPA-PFS) designations. Financial planners can take you through the financial planning process.

Insurance Agent
Insurance agents are licensed by the state(s) in which they practice to sell life, health, property and casualty or other insurance products. Many insurance agents hold the Chartered Life Underwriter (CLU) designation. Financial planners may identify and advise you on your insurance needs, but can only sell you insurance products if they are also licensed as insurance agents.

Investment Adviser
Anybody who is paid to provide securities advice must register as an investment adviser with the Securities and Exchange Commission or relevant state securities agencies, depending on the amount of money he or she manages. Because financial planners often advise people on securities-based investments, many are registered as investment advisers. Investment advisers cannot sell securities products without a securities license. For that, you must use a licensed securities representative such as a stockbroker.

Stockbroker
Also called registered representatives. Stockbrokers are licensed by the state(s) in which they practice to buy and sell securities products such as stocks, bonds and mutual funds. They generally earn commissions on all of their transactions. Stockbrokers must be registered with a company that is a member of the National Association of Securities Dealers (NASD) and pass NASD-administered securities exams.

Be Sure You're Getting Financial Planning Advice

The government does not regulate financial planners as financial planners; instead, it regulates planners by the services they provide. For example, a planner who also provides securities transactions or advice is regulated as a stockbroker or investment adviser. As a result, the term "financial planner" may be used inaccurately by some financial advisers. To add to the confusion, many of the financial advisers described in this brochure offer financial planning services. To be sure that you are getting financial planning advice, ask if the adviser follows the six steps described below.