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Financial advisors come in an alphabet soup array, including certified public accountants (CPA) and certified financial planners (CFP), with its allied designations such as chartered financial consultant (ChFC) and certified trust and financial advisor (CTFA). Tax lawyers, stockbrokers and investment managers round out the mix. With so many choices, how do you cut through the thicket to find the advisor that's right for you?
Each profession has its place, and not surprisingly, each sees a business owner's needs through its own filter. Barnes advises thinking carefully about what you and your business need. Stockbrokers, for instance, tout the merits of Wall Street. CPAs can set up the business accounting system efficiently. A tax lawyer might be the right specialist if your business encounters a specific tax problem.
For these reasons, many small-business owners choose a certified financial planner. Where other financial advisors are specialists, CFPs are generalists. They determine a client's needs, refer them to specialists as necessary and coordinate the ultimate package to ensure it works together.
"Financial planners have the broadest viewpoint," says Brown. "I always suggest starting broad and getting more narrow in scope as you need to. CFPs will also work with your existing advisors. You don't need to do away with anyone."
Over the long term, you'll probably seek the services of several different kinds of financial advisors to guide your decisions. As Kemprecos observes, "Even a sole proprietor needs a team. You'll rarely find everything you need wrapped up in one person."
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