Finding a financial planner that has expertise in the specific area of service you need can be difficult - and may involve trying to decipher the complex certifications and licensures that serve as credentials in the field. Industry professionals often list these after their name and title, but with financial advisor licensing, what exactly do all those letters and number mean?
Understanding these licensing numbers and acronyms can help you intelligently negotiate your search for an investment planner or estate planning professional. Of course, it all depends on the type of service you need. If you are interested in securities investments like stocks, bonds, mutual funds and exchange traded funds (ETFs), the Financial Industry Regulatory Authority (FINRA) administers and grants numbered certifications, such as series 6, 7, 8, 24, 66, and 63 licenses, and many more. These certifications are necessary for a specialist to not only sell you these products, but to even talk to you about them legally. Of those mentioned above, series 8 and 24 indicate that the individual is certified to be in a management position, while others may indicate state licensing. There are many more series issued denoting expertise in options or futures trading. Since these types of transactions can all be complicated, and it is your money on the line, it is worthwhile to make sure that the individual you entrust with your funds has adequate expertise in the types of investments you want to make.
It can get kind of complicated, which is why FINRA provides the Certification Registration Depository, or CRD. FINRA CRD is the central registration and licensing network for the U.S. securities industry and regulators. The database contains the registration information on thousands of brokers and lists the qualifications, employment and disclosure histories of over 660,000 registered individuals. It is a great place to do a little research into a prospective planner.
Find out if the individual you are considering is a member of the National Association of Personal Financial Planners (NAPFA), or the National Association of Securities Dealers (NASD). NAPFA and NASD are both well-respected organizations and their members adhere to certain standards. The Certified Financial Planner Board of Standards also issues the Certified Financial Planner (CFP) accreditation, which promotes fee-only services that may save you money.
There are also state-specific licenses that are necessary to deal in insurance policies, whether they are health, life or home policies (property or casualty), and even annuities. Most of these businesses are nationally regulated, but an individual must also have a state license in each state in which he or she works.
Attorneys may also work in the industry, and with their varied expertise, they can help with more complex plans like establishing and administering trusts and estate planning. There are credentials necessary for almost everyone in the financial industry, whether he or she works for a life insurance agency or a brokerage. A big bank may have many specialists on staff, managing billions, but an independent consultant unaffiliated with a larger organization may be able to give you the one-on-one attention you and your money deserve. When it comes to your finances, make sure you find the right person to help you achieve your goals.
Author Resource:-
Stephen Daniels is an acclaimed internet marketing strategist. If you are seeking San Francisco financial planning and assistance, he recommends Stoneridge Financial Advisers. These licensed advisers offer investment, estate and other planning services through a multi-disciplinary approach that saves you time and money.
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