Massachusetts Financial Planning Newsroom

Who Has Passed A Financial Planning Exam, Has Practical Experience In Financial Planning And Is A Member Of The AICPA

What the Letters Mean AICPAPFP-American Institute of Certified Public Accountants/Personal Financial Planning Specialist

A Personal Financial Planning Specialist is a CPA who has passed a financial planning exam, has practical experience in financial planning and is a member of the AICPA.

CFA-Chartered Financial Analyst
CFA is a designation awarded by the Institute of Chartered Financial Analysts to experienced financial analysts who have passed exams in economics, financial accounting, portfolio management, security analysis and standards of conduct.

CFP-Certified Financial Planner
A CFP is a planner who has met educational and experience requirements, agreed to abide by a code of ethics and passed a national test administered by the CFP Board of Standards. The exam covers insurance, investments, taxation, employee benefits, retirement planning and estate planning.

ChFC-Chartered Financial Consultant
ChFC is a designation awarded by the American College of Bryn Mawr and is the insurance industry's financial planning designation. Consultants must meet experience requirements and pass exams covering finance and investing.

CLU-Chartered Life Underwriter
CLU is a designation awarded by the American College of Bryn Mawr. Recipients must pass national examinations in insurance and related subjects as well as have business experience in these areas.

CPA-Certified Public Accountant
A CPA is an experienced accountant who has met the educational, statutory and licensing requirements of the state in which they reside. CPAs perform audits and prepare tax returns-they leave the financial planning advising to the Personal Financial Planning Specialists in their field.

RIA-Registered Investment Advisor
An RIA is an individual who has registered with the Securities & Exchange Commission (SEC) and holds himself or herself out to be an investment advisor. Registration is required of anyone who, for compensation and as part of a business, gives advice, makes recommendations, issues reports or furnishes analysis on securities either directly or through publications. If a planner is an employee of an advisory firm such as a brokerage house, the brokerage house will have a blanket registration with the SEC for all employees.

What to Ask a Financial Planner
Regulatory Compliance
Persons and firms who hold themselves out as providing investment advice must be registered with both the Securities & Exchange Commission and the Massachusetts Secretary of State's office. Individuals may be covered under blanket registration of the firms they work for.

Are you registered with the Securities & Exchange Commission (SEC)? If not, is your firm registered?
Are you registered with the Massachusetts Secretary of State's office? If not, is your firm registered?
Background and Experience
Registered financial planners must file a form listing their education and experience with the SEC and Secretary of State (form ADV part II). Ask for a copy of this form, too.

What credentials have you earned?
What is your educational background?
How long have you been practicing financial planning?
May I have a list of references?
Services
What kind of services do you offer?
Will you prepare a complete or partial financial plan after listening to my goals?
Do you sell financial products?
Do you manage investments for a fee?
Do you review a client's taxes?
What kind of client do you generally service?
Do you have a minimum account size?
What continuing service will I receive after the initial plan?
How often do you send out portfolio reports?
What are your research methods and sources?
Compensation
Both the SEC and the Secretary of State require that the individual or firm disclose this information.

How is the firm paid?
May I have a written estimate of what the fees will be?
Do you have a printed fee schedule available?

For More Information
The following two organizations will send you names of planners in your geographical area:

Financial Planning Association (FPA)
Massachusetts Office
19 Harrison Street, Framingham, MA 01701-2313
Consumer line: 866-804-0484
National Association of Personal Financial Advisors (NAPFA)...www.napfa.org
355 West Dundee Road, Suite 107
Buffalo Grove, Illinois 60089
888-FEE-ONLY or 847-537-7722
NAPFA represents fee-only planners.
People and firms who hold themselves out as providing investment advice must be registered with either the Securities & Exchange Commission (SEC) in Washington, DC or the Massachusetts Secretary of State's office in Boston. Persons managing: over $25 million for clients must be registered with the SEC; under $25 million, or not managing money, must be registered with the state. To find out if a person or firm is registered, contact

Contact Massachusetts Financial Planning Professional