OF THE EAST BAY

Financial Planning Association of the East Bay

A Gold Level Chapter of the FPA for the 6th Consecutive Year!

Consumer Information

For your convenience, the Financial Planning Association of the East Bay has developed material to

provide you, the consumer, with unbiased, timely and pertinent information regarding the various

aspects of your financial profile. The information below has been put together by the FPA specifically

for your use.

What is Financial Planning?

Financial planning is a long-term process of wisely managing your finances so that you can achieve

your goals and dreams, while at the same time helping to negotiate the financial barriers that inevitably

arise in every stage of life.

Why do I need a financial planner?

Do you have the expertise?

Do you have the time or desire to actively plan, manage and monitor the financial aspects of your life?

A financial planner provides objective, third-party perspective on what may be emotional, difficult decisions.

A financial planner provides “checks and balances” on an ongoing basis and ensures that you stay focused.

A financial planner emphasizes follow through with your financial plans.

Life events that may prompt you to seek the services of a planner:

Often a specific event or need will trigger the desire for professional financial planning guidance.

These include:

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Retirement planning including a rollover of an employer pension/qualified plan.

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Education funding.

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Protection of financial assets.

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Inheritance of a large sum of money.

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Caring for aging parents or disabled child.

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Death of spouse or family member.

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Business planning including buying, selling or passing on a family business.

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Charitable Giving.

Questions to ask when choosing a financial planner:

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What financial planning designations the planner holds and professional affiliations

and memberships.

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Educational background and work experience.

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The planner's basic approach to financial planning.

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How the planner prepares a plan.

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How the planner may address your particular needs.

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Whether the planner or others will implement recommendations from the plan.

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Services the planner provides.

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Areas of specialization.

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Types of clients the planner serves, and any minimum net worth or income requirements.

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Licenses to offer certain financial products, such as life insurance or securities.

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How the planner is compensated for services, and the typical charges.

How do I choose the right financial planner for me?

Choosing a financial planner is as important as choosing a doctor or lawyer. Working with a

financial planner is a very personal relationship. You may want to interview at least three planners

in person to find the right one to serve your needs.

What are the CFP® (Certified Financial Planner™) marks?

The CFP® marks are awarded to individuals who have successfully completed the certification

requirements of the Certified Financial Planner Board of Standards, Inc. To obtain the CFP®

certificate, the following qualifications must be met:

Examination. An individual must successfully complete the CFP Board’s Comprehensive Certification

Examination, which tests the individual’s knowledge on a multitude of key financial planning topics.

Experience. An individual must acquire three to five years of financial planning-related experience

prior to receiving the right to use the CFP marks.

Ethics. An individual must voluntarily ascribe to the CFP Board’s Code of Ethics [need link] and

Professional Responsibility. This voluntary decision empowers the CFP Board to take action if a CFP®

professional should violate the code of ethics. Such violations could lead to disciplinary action,

including the permanent revocation of the right to use the CFP marks.

Education. A CFP® professional must obtain 30 hours of continuing education every two years in the

body of knowledge pertaining to financial planning areas such as estate planning, retirement

planning, investment management, tax planning, employee benefits, and insurance.

How do I contact a financial planner?

You can search online by clicking on the Planner Search provided by the National Financial Planning

Association.

This is the same link as below -- either one takes you there!

Or you may want to ask for a referral from a reliable friend, family member or business associate

who is working with a financial planner. Attorneys, accountants, insurance agents, bankers and other

financial specialists may also be good sources because financial planners frequently work with them

to carry out a client’s financial plan.

FPA can provide a list of financial planning professionals in your area. You can generate a custom

based on proximity by clicking on the Planner Search logo below.

You can also obtain a referral by calling the toll-free hotline at 800.282.PLAN (7526)

At the tools site you will find

an interview questionnaire for

helping you select a planner.

Additional Reading on Selecting and Working With a Financial Planner

Simply click on the link below and it should load or download

Information from NEFE -- National Endowment for Financial Education: "Ten Mistakes to Avoid When Using a Financial Advisor"  (PDF - Adobe Acrobat Reader required.)

Information Offer from NEFE -- National Endowment for Financial Education:  "When and How to Choose a Financial Planner" (PDF - Adobe Acrobat Reader required.)

Information from NEFE -- National Endowment for Financial Education:  "Selecting a Financial Advisor" from the YOU FIRST Handbook Series (PDF - Adobe Acrobat Reader required.)

Here are useful links for more information about our Chapter, its activities, the FPA and more.

Please send any comments or corrections to our webmaster, Steven "Shags" Shagrin at Shags@PlanningForLife.info