What Is a Financial Planner: Types, Credentials to Know
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A financial planner is a professional who evaluates your finances and creates a plan to help you meet your goals for investing, saving for retirement, paying for college or paying off debt.
The term "financial planner" isn't regulated. Anyone, regardless of their training, credentials, or duties, can call themselves a financial planner. However, some professional designations — such as certified financial planner (CFP) — have a fiduciary duty to clients, which means they’re legally obligated to put their clients’ best interests first.
What you can expect from a financial planner
Some financial planners specialize in certain areas, such as taxes or investments. Others are general practitioners, offering advice on budgeting, investing, insurance, retirement planning and more.
Typically, when you work with a financial planner, you'll begin with a review of where you stand. You’ll be asked about:
Your goals. What are your short- and long-term financial priorities?
Your current financial picture. How much money comes in and goes out? What do you own, and what do you owe?
Your risk tolerance. Your financial planner should ask about your risk tolerance and investing goals. This will help them to recommend how much of your portfolio to put in stocks, bonds or other assets.
» Curious about the cost? Read an overview of financial advisor fees
How to start working with a financial planner
Most good financial planners will offer a complimentary introductory meeting. This initial meeting is a chance to get to know one another and see if you mesh on a personal and philosophical level. Take this opportunity to find out everything you can, including how much you can expect to pay, how the advisor will present your financial plan and how often to expect communication.
Once you choose a planner, expect them to be in fairly regular contact with you. The form that contact takes will vary and should be based on your preferences. You should tell your planner about any changes to your financial situation.
Next steps: 10 questions to ask a financial advisor
How to know if you need a financial planner
Generally speaking, the more complex your financial situation, the more likely you are to benefit from a financial planner.
If your finances are simple, you may be able to take a DIY approach. But financial planners can provide an objective perspective and expertise to investing, setting priorities and protecting yourself. A financial planner can be especially helpful for navigating life changes — think marriage, a divorce, home purchases, having children, business startups or inheritance.
» Take our quiz: Do you need a financial advisor?
Types of financial planners
The type of financial planner that is best for you will depend on your needs, life stage and budget. The table below shows common types of financial planners and what they could do for you.
Common types | What to look for | Best for |
|---|---|---|
Certified financial planners (CFPs) | The CFP designation indicates that a provider has gone through a rigorous formal training and testing process. They are fiduciaries. | CFPs may be able to address complicated or ongoing planning needs and provide investment management. |
Chartered financial consultants (ChFCs) | ChFCs have completed education requirements similar to CFPs. They are fiduciaries and must adhere to The American College of Financial Service’s code of ethics. | ChFCs may be able to address complicated or ongoing planning needs and provide investment management. |
Wealth advisors | Wealth advisors typically work with high-net-worth individuals to create a tailored investment and financial strategy to help them manage their assets, reduce risk and leave a legacy. | People with at least $1 million to invest. |
Financial coaches | Some financial coaches have completed training programs by the Association for Financial Counseling and Planning Education (AFCPE). Look for one who holds either the AFCPE’s Accredited Financial Counselor designation or Sage Financial Solutions’ Accredited Personal Financial Coach designation. They don’t manage investments. | People learning the basics of financial literacy, such as how to save money or reduce spending. |
Financial counselors | Financial counselors help clients with budgeting, debt and saving. They often work at banks, credit unions or other agencies. They may also assist with navigating public benefits. The title “financial counselor” isn’t regulated, and it doesn’t guarantee the person has specific training. | Help with things like budgeting and saving, rather than with investments. |
Certified Public Accountants (CPAs) | A CPA prepares and files income taxes. They typically have deep knowledge of tax law and of any critical tax changes affecting your situation. They typically do not provide investment advice. | People who need specific tax advice or tax preparation. |
Robo-advisors | Robo-advisors use algorithms to build and manage a portfolio of low-cost investments suited to your financial goal. The algorithm determines the investment mix and automatically adjusts it when needed. The minimum investment is usually small. | Investment management only. |
What to look for in a financial planner
When shopping for a financial planner, consider credentials, disciplinary history and specialization.
Credentials
We recommend working with credentialed professionals, but be sure to verify their credentials first.
CFPs
The CFP designation is regulated by the CFP Board
CFP Board. CFP Board. Accessed Apr 13, 2026.. Only financial professionals who have satisfied the board's educational, exam, work experience, and ethical requirements may use it.CFPs must act as fiduciaries to their clients to maintain the designation
CFP Board. Code of Ethics and Standards of Conduct. Accessed Apr 13, 2026..You can verify whether a financial planner is a CFP using the CFP Board’s lookup tool.
ChFCs
The American College of Financial Services requires financial consultants with the ChFC designation to complete a financial planning program and adhere to its code of ethics
The American College of Financial Services. Chartered Financial Consultant. Accessed Apr 13, 2026..ChFCs must complete continuing education requirements to maintain their certification.
You can verify that your financial consultant is a ChFC using the American College’s lookup tool.
Disciplinary history
The CFP lookup tool will show you whether a financial planner has received any formal complaints. It will also show whether a court system or the CFP board has taken any legal or disciplinary actions against the advisor. Be cautious about engaging a financial planner who has a history of wrongdoing.
Specialization
Some financial planners specialize in a particular type of client. Some planners obtain additional specialized credentials. These specializations may or may not be a good fit for your financial situation.
For example, the Chartered Special Needs Consultant (ChSNC) designation indicates expertise in financial planning services for people with disabilities and their families. It is offered and regulated by the American College of Financial Services.
» Next step: Search for a financial advisor near you
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