THE BEST FINANCIAL PLANNERS They're Masters of Budgeting, Investing, Taxes and Retirement

By Richard Eisenberg and Wendy Lubetkin

October 12, 1987

(MONEY Magazine) – In 1972 a few lonely souls called themselves financial planners; now more than 100,000 people do. But perhaps only one in three rightfully deserves the title, and unfortunately it is hard to know which ones they are. Alas, financial planning is an almost instant profession, with no government agency or professional association empowered to bar the door to the unqualified. The directory that follows, however, should help you find the ablest planners in your state. The men and women listed -- a high percentage of planners are women -- are among the most qualified in the U.S. All have demonstrated a mastery of budgeting, insurance, investing, taxes, retirement planning, trusts and other estate planning techniques. The 200 planners on our list were nominated by prominent planners and then interviewed by MONEY reporters. Of necessity, the directory omits many qualified people because others received a greater number of recommendations from their peers. Also left out are a handful of front-runners who are not now taking new clients. No one is listed in Alaska, Montana and Wyoming because we found too few practicing planners there to carry out our peer review. When the time comes, you may have to find a reliable planner on your own, and a good time is when your household income or your investable assets hit $50,000. In making your choice, try this process of elimination: -- Limit your search primarily to those with a C.F.P. or Ch.F.C. designation. C.F.P. stands for certified financial planner; Ch.F.C., for chartered financial consultant. To earn either title, a planner has to pass a series of exams administered by a professional board or an accredited academic institution. A few planners who are identified on our list as enrolled agents have either worked for the Internal Revenue Service or passed a special IRS exam for tax preparers. Other initials that may be listed after a planner's name are C.F.A., for chartered financial analyst, a designation for investment professionals; C.L.U., for chartered life underwriter, indicating a highly trained life insurance agent; M.S.F.S., for master of science in financial services; R.F.P., for registered financial planner, someone who has passed state insurance and securities exams; R.H.U., for registered health underwriter, a specialist in health insurance; and the more familiar M.B.A., C.P.A. and J.D. or LL.B. (law degrees).

-- Look for membership in the Registry of Financial Planning Practitioners. (This is noted by the word ''Registry'' in the listings.) The 735 men and women in this group, sponsored by the International Association for Financial Planning (IAFP), have at least three years' experience as planners and a C.F.P. or Ch.F.C. designation or a business or law degree. They have also passed an especially comprehensive examination. A free list of registry members is available from the IAFP (Suite 800, 2 Concourse Pkwy., Atlanta, Ga. 30328). -- Ask planner candidates how they are compensated and what you will pay. Be careful of planners who say their plans are free, because they live on commissions earned on financial products bought by clients. Such planners could be tempted to sell you what you don't need. Instead, lean toward fee- only or fee-and-commission planners, who will tend to be more objective. An hourly rate of $100 is fairly typical of both groups; a flat fee for a written plan usually costs $500 to $1,000 if commissions add to the planner's compensation and as much as $5,000 if the fee is the only compensation. -- Ask planners what their typical client's income is. When that figure is $150,000 or more, we note it for planners on our list. Don't automatically rule out such planners if your income is lower. Ask whether they welcome people with your income or assets. But if you are earning $50,000 and none of their clients make less than $150,000, look for someone else.