Financial Planning - An Important Decision for Our Financial Security

What is Financial Planning?
Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child's education or planning for retirement.

The financial planning process consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps you can work out where you are now, what you may need in the future and what you must do to reach your goals.

The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

The Benefits of Financial Planning
Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.

Financial Services Credentials
The following list contains some of the financial services credentials and the organizations that oversee them.

AAMS®
Accredited Asset Management Specialist (800) 237-9990 - This designation is awarded by the College for Financial Planning.

AEP
Accredited Estate Planner (610) 526-1389 - The AEP designation is awarded by the National Association of Estate Planners & Councils.

AFC
Accredited Financial Counselor (614) 485-9650 - This designation is awarded by the Association for Financial Counseling and Planning Education (AFCPE).

ATA
Accredited Tax Advisor (703) 549-2228 - This mark is awarded by the Accreditation Council for Accountancy and Taxation (ACAT).

CEBS
Certified Employee Benefit Specialist (262) 786-6700 - The CEBS designation is co-sponsored by the International Foundation of Employee Benefit Plans (IFEBP) and the Wharton School, University of Pennsylvania.

CDFA
Certified Divorce Financial Analyst (800) 875-1760
The Certified Divorce Financial Analyst, LLC, offers a credential for financial professionals in the divorce arena.

CFA®
Charted Financial Analyst (800) 247-8132
This designation is awarded by the Association for Investment Management and Research (AIMR®).

CFP® certification
CERTIFIED FINANCIAL PLANNER - (303) 830-7500 - The CFP® designation is awarded by the Certified Financial Planner Board of Standards Inc., (CFP Board).

CIMA
CERTIFIED Investment Management Analyst (303) 770-3377 - The CIMA credential is awarded by the Investment Management Consultants Association.

CIMC
Certified Investment Management Consultant (202) 452-8670 - This credential is awarded by the Institute for Certified Investment Management Consultants (ICIMC).

ChFC
Chartered Life Underwriter (610) 526-1450 - The ChFC credential is a financial planning designation awarded by the American College.

CLU
Charted Life Underwriter (610) 526-1450 - The CLU designation is awarded by The American College.

CMA
Certified Management Accountant (800) 638-4427 - The professional designation is awarded by the Institute of Certified Management Accountants (ICMA).

CPA
Certified Public Accountant (888) 777-7077 - The CPA designation is awarded by the American Institute of Certified Public Accountants

CPCU®
Chartered Property Casualty Underwriter (800) 644-2101 - The American Institute for Chartered Property Casualty Underwriters (AICPCU) confers the CPCU® insurance designation.

PFS
Personal Financial Specialist (212) 596-6200 - The PFS credential is a financial planning designation awarded by the American Institute of Certified Public Accountants (AICPA).

RFC
Registered Financial Consultant (800) 532-9060 - This designation is awarded by the International Association of Registered Financial Consultants (IARFC).

RHU
Registered Health Underwriter (610) 526-1450 - The American College awards this designation to individuals involved in traditional health insurance or managed care.