Anyone can call themselves a financial advisor. That is a generic term that requires no specific education or certification. Some who are financial advisors will push their clients into products that benefit the customer very little, but they generate a large commission for the consultant. Many annuities and whole life policies fall into this category. Many tasks regarding financial management can be done on your own, utilizing websites where one can buy and sell securities, and obtain advice and information online. But, if one wants to hire a financial expert a good option is to hire a certified financial planner (CFP). Those with the CFP designation must complete certain financial college courses beyond a bachelor's degree, and they must take an oath to act in the interest of the customer, not simply push them into investments that will generate the highest commission. A CFP must pass a rigorous exam and undergo continuing education classes to keep up-to-date on developments in the financial industry. They must have at least 3 years experience as a financial planner. High ethical standards and a thorough background check are required. Honesty and integrity in financial advising has always been an issue, but hiring a CFP is one way to lower your risk of being put into poor investments.
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