Let’s start with some good news. You can do a lot of money management yourself. You can create a budget, pay down your debt, and start investing all on your own. But there may be a point that it feels right to bring in a professional. So, who can I hire to manage my money? Well, you have options. There are a number of different people who work in the financial space that can help you with your money. Let’s break down your options for who you can hire, what they can help you with, and how to find qualified professionals to hire.
You have a few options for the type of financial professionals you can hire to help you manage your money. What type of professional you end up hiring will depend on what areas of your financial life you need help with.
Hiring a financial advisor is the best place to start when first seeking out professional financial help.
What is a financial advisor? A financial advisor is a professional who helps individuals and organizations manage their finances and make investment decisions. They may provide a wide range of services, such as creating financial plans, managing portfolios, providing tax advice, and offering insurance and estate planning services.
Financial advisors may be independent or work for a financial firm, bank or insurance company. They may hold various certifications such as CFP (Certified Financial Planner) or ChFC (Chartered Financial Consultant) and may be registered with the SEC (Securities and Exchange Commission) or FINRA (Financial Industry Regulatory Authority).
A financial advisor can help you make a plan for how you want to spend, save, and invest your money. That way, you can build a strong financial future for yourself and your family.
You may want to consider hiring a fee-only fiduciary financial advisor.
If you’re looking for a fee-only fiduciary financial advisor, here are some places to start:
Once you’ve found a financial advisor that you’re interested in working with, check their credentials and any restrictions they may have at FINRA.org.
As briefly noted before, many financial advisors are CFPs which are Certified Financial Planners. When hiring any type of financial advisor or planner, you want to look for one who is also a CFP.
To earn a CFP certification, the individual must meet certain education, experience, and examination requirements set by the Certified Financial Planner Board of Standards (CFP Board). To become a CFP, an individual must have a bachelor’s degree, completed certain coursework in financial planning, and have at least three years of full-time financial planning experience. They also have to pass the CFP Certification Examination. The CFP certification is considered to be one of the most respected and recognized financial planning credentials in the industry, and CFP professionals are held to a fiduciary standard, which means that they are required to act in the best interest of their clients (this is key).
Individuals who work as a Certified Financial Planner (CFP) are typically financial advisors or financial planners. They provide financial planning and investment advice to individuals, families, and businesses. CFPs may work independently or for a financial services firm, bank, or insurance company. They may also work in a specific area of financial planning, such as retirement planning, estate planning, tax planning, or risk management. Some CFPs may also work as educators or researchers, teaching financial planning courses or conducting research on financial planning topics. The CFP certification is highly respected, and the professionals who hold it are considered to have a high level of expertise and knowledge in the field of financial planning.
CPA stands for Certified Public Accountant. A CPA is a professional who has passed a rigorous examination and met education and experience requirements set by the state in which they are licensed. They are authorized by the state to provide a wide range of accounting and financial services to individuals, businesses, and organizations, including:
CPA’s are held to a high ethical standard and are required to maintain their knowledge and skills through ongoing professional development. They are licensed by the state boards of accountancy and regulated by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA).
Investing can feel overwhelming if you don’t know where to start or if you don’t have the time to research what investments are the best fit for your budget, risk tolerance, and financial goals.
An investment advisor is a professional who provides advice and guidance to clients on how to invest their money. They may help clients create investment portfolios, select individual stocks, bonds, or other securities, and make buy, hold, or sell decisions.
Investment advisors are required to be registered with the Securities and Exchange Commission (SEC) or state securities regulators, and they may be held to a fiduciary standard, which means that they are required to act in the best interest of their clients. Investment advisors may work for a financial services firm, bank, or insurance company, or they may be independent and work on their own or with a small team.
Determine your investment needs: Before you start looking for an investment advisor, it’s important to have a clear understanding of your investment goals, risk tolerance, and time horizon. This will help you find an advisor who is a good fit for your specific needs. Some investment advisors may specialize in a specific area of investing, such as growth investing, value investing, or socially responsible investing.
You should also look for investment advisors who are registered with the Securities and Exchange Commission (SEC) or state securities regulators, and check their background, qualifications, and disciplinary history through the SEC’s Investment Adviser Public Disclosure (IAPD) website or FINRA’s BrokerCheck.
It is also helpful to ask friends, family, or other professionals you trust for referrals to investment advisors they have worked with and had a good experience with.
No one teaches us about how to manage our money in school. Which is why it can be necessary to seek professional help when you want to level up your financial life. Hiring a professional can help you leverage their years of experience and can help you learn more about how to manage your finances.
That being said, when hiring any financial professionals, it’s important to remember that hiring anyone is not a one-time decision. You need to regularly review and evaluate the performance of the advisor to make sure they’re meeting your needs and are helping you reach your financial goals.
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