But choosing a professional can feel like an equally daunting and confusing task. There are a lot of people who claim to be experts, many of whom have official-sounding designations after their names. There are also a lot of horror stories about parents getting scammed out of hundreds or thousands of dollars by professionals who did not perform as advertised. Here’s a primer on some of the more credible designations you may want to consider if you’re shopping for help. Additionally, the CFP Board of Standards actively responds to complaints about licensees. It’s not uncommon for the Board to revoke licenses of those found to be acting below the accepted professional standards. However, while a CFP professional has extensive training in the financial planning and investment process, they do not receive exhaustive training in college planning. So it’s best to consider the CFP designation as a minimum standard for a college planning professional. Ideally, if you choose to hire a Certified Financial Planner, he or she will have additional credentials or extensive experience working with college planning. Lesser-known designations that can be considered fairly equivalent to the CFP designation are the Chartered Financial Consultant (ChFC) and the Personal Financial Specialist (PFS) designations. A great place to begin looking for a professional who has earned the CFP designation is on the CFP Boards of Standards directory, or by contacting your local Financial Planning Association. Since many of the acceptable “financial licenses” do not even require a college degree, it’s advisable to use an advisor with this designation only if they have more extensive training and credentials. If they hold this designation and are not a licensed stockbroker or investment advisor, they legally should not be giving you investment advice. If you would like to find a professional with the CCPS credential, you can visit the website for the National Institute of Certified College Planners. Stockbrokers vary widely in their ability and focus and may have little or no training in financial planning. This means that there are stockbrokers out there who will be great at helping you plan and save for college, as well as those who have very little experience. Since the vast majority of stockbrokers work on commission, there is a natural conflict of interest that exists between your needs and their income. Oftentimes, a stockbroker will only make money if you invest with them, which can blind their ability to give impartial advice. Further, many stockbrokers’ investment recommendations are limited by their firms’ relationships with other investment companies. For example, a large Wall Street firm may only have agreements with a portion of the companies offering Section 529 plans. Thus, a stockbroker’s recommendation may be based more on what they can offer you through their firm than what is best for you. Generally, the best way to find a stockbroker is by asking other friends or professionals you trust. Once you’ve narrowed it down to a few potential candidates, you can perform an abbreviated background check on the National Association of Securities Dealers website. Even if you’re already using a trusted CFP professional or Registered Representative to help you manage your college investments, these individuals are usually prohibited by law from giving you tax advice. Using a CPA in conjunction with one of these other professionals will help make sure you maximize your tax deductions and credits. The enrolled agent (EA) designation is a lesser-known, but equivalent designation in the world of tax preparation. If you truly feel like you need help filling out the FAFSA form (the instructions are very clear when you complete the form online), consider asking your tax preparer or financial planner for help. You don’t need a paid professional to help you participate in Federal and state aid programs. In fact, the financial aid office at your college of choice is there to help you accomplish those exact tasks. This isn’t to say there aren’t professionals out there who know the scholarship world like the back of their hand. If you can truly find one of these professionals, and you have a student that may qualify for more obscure scholarships, this may be a great person to have in your corner. When it comes to choosing one of these professionals, the best method is going to be a solid referral from someone who has already used them. Ask other parents and financial professionals if they’ve worked with anyone worthy of your trust. Additionally, you need to be aware of designations created by larger investment firms and awarded only to their employees. Designations as “Section 529 Plan Specialist” may have only required an individual to complete a day-long class, and are as much a marketing ploy as a real credential.
