What Is a Personal Financial Specialist and Why You Need One in 2023 – PART1
If you are looking for a professional who can help you with your personal financial planning, you may have come across the term “personal financial specialist” or PFS. But what exactly is a Personal Financial Specialist and how can they help you achieve your financial goals? In this post, we will explain what a PFS is, what qualifications and responsibilities they have, and what benefits and costs they offer. We will also provide some tips and examples on how to find and work with a PFS in 2023.
What Is a Personal Financial Specialist?
A personal financial specialist (PFS) is a certified public accountant (CPA) who has additional education, experience, and examination in financial planning and wealth management. A PFS can offer services in areas such as estate planning, retirement planning, investing, insurance, and taxes. The PFS certification is granted by the American Institute of Certified Public Accountants (AICPA) to CPAs who meet the requirements. A PFS has a combination of tax expertise and comprehensive knowledge of financial planning.
What Qualifications and Responsibilities Do Personal Financial Specialists Have?
To become a PFS, a CPA must meet the following requirements:
– Hold an unrevoked and valid CPA license issued by a state.
– Be a current regular member of the AICPA.
– Have at least two years of full-time professional or teaching experience in personal financial planning.
– Earn a minimum of 75 hours of continuing professional development in personal financial planning within the five-year period before applying for the PFS certification
– Pass the PFS exam or have already passed the Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) exams
A PFS must also adhere to the AICPA Code of Professional Conduct and the Statement on Standards in Personal Financial Planning Services. A PFS must also renew their certification every three years by paying a fee and completing 60 hours of continuing education.
A PFS can perform various tasks for their clients, such as:
– Analyzing their current financial situation and identifying their goals and needs.
– Developing a comprehensive financial plan that covers cash flow, debt management, risk management, investment strategy, retirement planning, estate planning, tax planning, and education funding.
– Implementing the financial plan by selecting appropriate products and services, such as insurance policies, investment accounts, trusts, wills, etc.
– Monitoring the financial plan and making adjustments as needed based on changes in the client’s circumstances, goals, or market conditions.
– Communicating with the client regularly and providing reports, recommendations, and education.
What Benefits and Costs Do Personal Financial Specialists Offer?
Hiring or becoming a PFS can have many benefits for your personal finance. Some of them are:
– A PFS can help you save time and money by providing expert advice and guidance on various aspects of your financial life
– A PFS can help you avoid costly mistakes and optimize your tax situation by leveraging their knowledge of tax laws and regulations.
– A PFS can help you achieve your financial goals faster and more efficiently by creating a customized and holistic financial plan that suits your needs and preferences.
– A PFS can help you protect your assets and family by recommending appropriate risk management strategies and estate planning tools.
– A PFS can help you increase your confidence and peace of mind by addressing your financial concerns and questions.
Of course, hiring or becoming a PFS also comes with some costs. Some of them are:
– A PFS may charge a fee for their services, which can vary depending on the complexity of your situation, the scope of work, the type of compensation (hourly, flat fee, commission-based, etc.), and other factors.
– A PFS may have conflicts of interest or biases if they receive commissions or incentives from selling certain products or services to their clients.
– A PFS may not be able to provide specialized advice or services in some areas that are outside their expertise or scope of practice.
– A PFS may not be able to guarantee the performance or outcome of your financial plan due to market risks or unforeseen events.
How to Find and Work With a Personal Financial Specialist in 2023?
If you are interested in hiring or becoming a PFS in 2023, here are some tips and examples on how to find and work with one:
– To find a PFS near you, you can use the online directory provided by the AICPA at https://www.aicpa.org/forthepublic/findacpa.html. You can also ask for referrals from your friends, family, colleagues, or other professionals who have worked with a PFS before.
– To verify the credentials and background of a potential PFS, you can check their license status with your state board of accountancy, their disciplinary history with the AICPA or the SEC, and their client testimonials or reviews.
– To compare and evaluate different PFS candidates, you can interview them and ask them about their qualifications, experience, services, fees, communication style, investment philosophy, and any other questions you may have.
– To work effectively with your chosen PFS, you should be honest and transparent about your financial situation, goals, and expectations, provide them with all the relevant information and documents they need, follow their recommendations and instructions, and communicate with them regularly and openly.
To conclude, a personal financial specialist (PFS) is a CPA who has additional expertise in financial planning and wealth management. A PFS can help you with various aspects of your personal finance, such as estate planning, retirement planning, investing, insurance, and taxes. However, hiring or becoming a PFS also involves some costs and challenges, such as fees, conflicts of interest, or market risks. Therefore, you should do your research and due diligence before choosing a PFS to work with.
Personal finance is an important and complex topic that affects your present and future well-being. In 2023, you may face new opportunities and challenges in your financial life due to changes in the economy, technology, society, or your personal circumstances. Therefore, it is essential that you prepare yourself and your finances for the upcoming year. One way to do that is to hire or become a personal financial specialist who can help you create and implement a comprehensive and customized financial plan that suits your needs and goals.
We hope this post has given you some useful information and insights on what a PFS is and how it can help you. If you are interested in learning more about personal financial planning or becoming a PFS yourself, please visit the AICPA website at https://www.aicpa.org/interestareas/personalfinancialplanning.html for more resources and guidance.
– #PersonalFinance2023
– #MoneyMarketTips
– #FinancialPlanningGoals
