Preparing for retirement is no easy task, and many Americans opt to hire a professional to help guide them through the process every step of the way, as it’s the only safe way to go about it.
Essentially, you’ve got two choices, and you’re given the ability to choose between a financial planner who will help you save and invest your money in a way that’ll allow it to grow by the time you’ve reached retirement age.
On the other hand, you can choose to go with a skilled accountant, who will assist you with tax preparations and just give you generally good advice regarding the current state of affairs on the market and what you should be doing with your money.
On a more fundamental basis, these two jobs are the same thing, but it’s the small things that set them apart from one another, and as small as they may be, they make a world of a difference.
Let’s go over some of the benefits and advantages you can gain from hiring a financial planner/accountant, and how you should do it to get the most bang for your buck.
CFP and CPA
Certified Financial Planners are only one of the many designations for financial advisors, although the difference is that a registered CFP is required to have passed an exam and to have had outstanding results in their education years.
Apart from being what could be classified as top-notch financial advisors, CFPs are always expected to work in favor of their clients, often focusing on doing everything in their power to help them reach their long-term goals.
On top of the aforementioned requirements, a CFP must also be officially recognized by the Board of Standards which evaluates CFPs’ skills and experience, determining whether they’re able to fill the role or not.
CPAs, however, are accountants only in the sense that they could potentially be helping you throughout tax season, even though most people don’t actually need any help with this paperwork if their taxes are simple.
Unlike a standard accountant, a CPA must pass certain education and experience standards that the board presents them with, all the while maintaining a professional relationship with the client and holding one’s ethics to a high standard.
Despite it being just some general things, every state will have its own requirements for a CPA, although most of them are skilled in the tax laws of nearly all of the United States.
Choosing one or the other
Of course, the best pick for you is fully dependent on the goals you’re gunning for, with several other factors coming in at a close second, including where you are in life right now as well as what you’re planning to leave in your legacy.
With this in mind, if you’ve already determined what you’ve got planned, it’s time to choose between a CFP and a CPE, which may turn out to be easier than you thought.
A CPA will usually only help you by dealing with your taxes, which can come in handy if you’re running your own business.
However, a CFP can show much more care for you and what you stand for, and they’ll be available to you 24/7 in order to help you amass wealth and achieve the goals you’ve set for yourself.
It’s hard to tell which of the two will actually come in handy, and it may be for the best to give both the CFP and the CPA a chance at fixing your current financial situation.
Sometimes, their help won’t be enough though, and you’ll have to do this on your own, after which you may want to contact a local CFP to help you get that dream job you’ve wanted now that you’re financially secure.
Some clients may even choose to work with both, and you may even run into certain professionals on the market who are skilled in being both a CFP and a CPA.
In the end, it’s up to you to decide which form of financial wisdom you’ll need, and that could depend entirely on your current situation, which may or may not be a bit tougher to handle.
However, it’s safe to say that every person out there would gladly have someone else to do their taxes, with the only real issue being that it’s painstakingly long and slow for a job that simple.
A financial advisor though may help you make the right investments and secure you a future you’ve always wanted, and as long as you keep following their advice, you’ll be able to stay in full control of your finances.
Budgeting on your own is definitely an option, but if you’ve got someone who can help you do it much more efficiently, why would you miss out on this incredibly affordable knowledge?