Ask Texas REALTOR®

Q   I’m thinking of hiring a financial planner, but I’m confused by their designations. Can you help me sort out what they mean?

A  Anyone can call himself a financial planner, so it pays to check credentials. A Certified Financial Planner (CFP) is required to pass college-level courses, pass a two-day, 10-hour exam, have three years’ experience in the financial-planning process, and agree to abide by a code of ethics.

A Certified Public Accountant/Personal Financial Specialist (CPA/PFS) is a CPA who has at least 250 hours of financial-planning experience per year for three years, passed an exam, and submitted references from colleagues and clients. There are 228 CPA/Personal Financial Specialists in Texas, and about 40,000 Certified Financial Planners nationwide.

Other designations signify special knowledge in the financial-planning arena, but these two indicate the people who hold them provide general financial-planning assistance.

Have a question about finances, licensing, technology, marketing, or other real estate issues? Ask Texas REALTOR® by sending e-mail to texasrealtor@texasrealtors.com or fax to 512/370-2390. Not all questions can be answered.

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