Selecting a person who will be in charge of your money can be quite a challenging task, which is why you need to understand the different types of financial advisors and their specializations. Financial planning is imperative to build a nice comfortable retirement nest egg so that you will not have to worry about making rent and payments for utilities in your golden years.

Different types of financial planners will provide both general and specific services.

Stockbrokers: Stockbrokers are registered representatives who have a good knowledge of the different investment products available in the market. These financial planners qualify after taking the series 6 & 7 exams and register with the Financial Industry Regulatory Authority, to obtain their license to practice as a broker. Stockbrokers will not advise you on the best financial planning tools rather they will use these tools to sell you different products to invest in and earn their commission, while you make a profit to be saved for retirement.

Investment advisors: Individual advisors or investment agencies will advise the best possible course of action to be taken on certain financial products, mostly securities. It is up to the client to act on the advice given which is why investment advisors differ from stockbrokers.

Chartered Financial Analyst: People who have qualified and earned this designation from the Chartered Financial Analyst Institute are eligible to practice. CFA’s are adept in investment analysis and portfolio management on behalf of the client.

Certified Public Accountant: CPA’s just like CFA’s have to clear the examinations set forth by the CPA institute to qualify and practice on their own. Additional certifications for CPA’s include a PFS (Personal Financial Specialist) designation which focuses on financial planning mainly concerning taxation and accounting. CPA’s are great planners who make use of various financial planning tools.

Certified Financial Planner (CFP): Probably one of the best options when it comes to choosing financial planners since CFP’s have to qualify stringent education and experience requirements and are also required to take continuing education programs even after certification. There are certain ideals of conduct which comprise of the code of ethics, rules of conduct, practice standards to be followed and compiled by the CFP.

Qualification and experience are two of the main parameters which will help you decide on which financial planner will best suit to make use of various financial planning tools available at his or her disposal to assist you in an investment.