00:00Whether you’re planning for retirement or
simply creating a personal budget, it doesn’t
00:04hurt to get help. Every person’s financial
situation is unique and may require the services
00:09of a specialized financial professional. In
this video, we’ll discuss some common financial
00:15professional designations, identify key differences
between them, and explain why you may choose
00:20to work with a financial advisor.
When you consider the service providers you
00:24trust most and who might impact your life,
your financial advisor might rank up there
00:29with your doctor or lawyer. But what exactly
is a financial advisor? Put simply, a financial
00:36advisor typically refers to someone who helps
people manage their money. Think of it as
00:40a general title that other more specific titles
fall under. Just as the term doctor could
00:45describe a pediatrician, cardiologist, or
surgeon, the term financial advisor is a general
00:51descriptor.
Financial professionals like stockbrokers,
00:55financial planners, and investment advisors
can help you with different financial needs.
01:00Stockbrokers, for example, buy and sell stocks
and other securities on behalf of clients,
01:05usually for a fee or commission. Financial
planners generally take a more holistic approach
01:10to your financial situation, looking at areas
like estate and retirement planning, insurance
01:16needs, and personal finance. Financial planners
may also have more specialized training. And
01:22investment advisors are often specialized
financial professionals who may create and
01:27manage an investment portfolio based on your
goals, timeline, and risk tolerance, helping
01:32you build, manage, and transfer wealth.
Within each of these professions are even
01:37more specific designations. One of the most
common designations is the CERTIFIED FINANCIAL
01:42PLANNER™, or CFP®, certification. CFP credentialed
professionals are held to strict ethical and
01:49fiduciary standards. Every prospective CFP
candidate must have a minimum amount of financial
01:54planning experience and pass a board exam
that covers topics like financial planning,
01:59insurance, taxes, retirement, and estate planning.
Another designation is the Chartered Financial
02:05Consultant®, or ChFC®, certification. While
the ChFC and the CFP designations have slightly
02:12different requirements for candidates, they’re
similar in practice. Both are distinguished
02:17certifications in the financial industry.
While many financial professionals call themselves
02:22financial advisors, only certain ones are
able to call themselves registered investment
02:27advisors, or RIAs. A RIA is a type of financial
professional who is registered with the Securities
02:34and Exchange Commission and/or a state securities
regulator. RIAs focus on investment advice
02:40around stocks, bonds, mutual funds, and other
securities. They recommend what and when their
02:46clients should buy, sell, or hold depending
on market conditions and their client’s
02:51goals. They may also provide other financial
planning services like retirement planning.
02:56So why would someone consider working with
a financial professional? Just about anyone
03:01can benefit from guidance, whether you’re
working on an investment plan, or you have
03:05questions around specific situations like
buying a house or paying for your children’s
03:10education. Maybe you want help with insurance,
tax guidance, or debt counseling. Or you may
03:15simply need to build a long-term financial
roadmap.
03:19Ultimately, everyone’s financial situation
is different. But it’s always important
03:23to have a plan and seek unbiased guidance
when you need it. Whichever type of financial
03:28advisor you choose, look for one with the
skills and experience best suited for your
03:32circumstances. An advisor should be able to
assess your financial needs to help you achieve
03:37your goals. A skilled financial professional
will act in your best interest and be committed
03:43to providing unbiased advice to help you plan
for an uncertain future with confidence.
![Welp, Here's what the Fed *Just* Said [Fed FOMC Minutes]](/_next/image?url=https%3A%2F%2Fi.ytimg.com%2Fvi%2Fl8u23oq1E9E%2Fhqdefault.jpg&w=3840&q=75)
