Getting and Using Professional Investment Advice

If you have a limited amount of assets, if your personal financial situation is simple and straightforward, and if you enjoy doing a little research, you may not need an investment adviser. But if you have substantial assets, if aspects of your financial life (like your tax return) are complicated, and if you don't want to research investments, you'll need at least some help from some type of investment adviser.

Types of advisers

There are many different types of investment advisers with a wide variety of professional designations and licenses. Here are some of the designations you'll come across as you search for an adviser:

Financial planners view your entire financial situation and create a plan that includes an investment program. The Certified Financial Planner (CFP) Board of Standards (http://www.cfp.net) certifies financial planners. See also the National Association of Personal Financial Advisors (http://www.napfa.org) for more information.

Stockbrokers (or simply brokers) buy and sell stock and make stock recommendations. Note that broker may mean either a specific individual or a firm that performs brokerage services. See the National Association of Securities Dealers or NASD (http://www.nasd.com) for more information.

Accountants perform a wide variety of financial services. Certified Public Accountants (CPAs) are accountants that are licensed by state boards of public accountancy, which are listed on the American Institute of Certified Public Accountants website http://www.aicpa.org/yellow/ypsboa.htm

Chartered Financial Consultants (ChFCs) are licensed by the insurance industry. They have to pass a test that covers the essentials of financial planning, including investing.