Definition
The Personal Financial Specialist (PFS) is a designation awarded to certified public accountants (CPAs) by the American Institute of Certified Public Accountants (AICPA). It signifies that the CPA has met extensive requirements and demonstrated expertise in personal financial planning, including subjects such as investment planning, retirement planning, estate planning, risk management, and tax planning.
Examples
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John Doe, CPA, PFS:
- John is a CPA who has earned the PFS designation. He provides comprehensive financial planning services to his clients, including investment management, retirement planning, and tax advice.
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Jane Smith, CPA, PFS:
- Jane specializes in estate planning and risk management. With her PFS designation, she is well-equipped to help clients navigate complex financial scenarios and plan for their future security.
Frequently Asked Questions (FAQs)
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What are the requirements to earn the PFS designation?
- To earn the PFS designation, a CPA must have extensive experience in personal financial planning, complete specific coursework, pass a rigorous examination, and comply with continuing education requirements.
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Do I need to be a CPA to qualify for the PFS designation?
- Yes, you must be a CPA to qualify for the PFS designation. It is an additional credential that CPAs can pursue to demonstrate specialized knowledge in personal financial planning.
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How often must a PFS designee complete continuing education?
- A PFS designee must complete 60 hours of continuing professional education (CPE) in financial planning topics every three years to maintain their designation.
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What are the benefits of working with a PFS designee?
- A PFS designee has demonstrated expertise in personal financial planning, ensuring they possess the knowledge and skills necessary to provide comprehensive financial advice, integrate tax planning, and offer strategic financial solutions tailored to individual goals.
Related Terms
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CPA (Certified Public Accountant): A professional designation given to someone who has passed the Uniform CPA Examination and met additional state certification and experience requirements. CPAs provide a range of accounting services, including auditing, taxation, and consulting.
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CFP (Certified Financial Planner): A professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards. CFPs must meet education, examination, experience, and ethical requirements.
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Estate Planning: The process of arranging for the disposal of an individual’s estate, including the management of an individual’s asset base in the event of their incapacitation or death.
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Investment Planning: Financial planning that involves creating an investment strategy tailored to the individual’s risk tolerance, financial goals, and time horizon.
Online References
Suggested Books for Further Studies
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“Personal Financial Planning for Executives and Entrepreneurs: The Path to Financial Peace of Mind” by Michael J. Nathanson:
- This book offers insight into personal financial planning from an executive and entrepreneurial perspective, providing practical strategies for managing wealth and planning for the future.
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“The New Wealth Management: The Financial Advisor’s Guide to Managing and Investing Client Assets” by Harold Evensky:
- A classic in the field of personal financial planning, providing comprehensive guidance on managing client assets and constructing investment portfolios.
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“The One-Page Financial Plan: A Simple Way to Be Smart About Your Money” by Carl Richards:
- A user-friendly guide that simplifies financial planning into a manageable, clear process, making it accessible for individuals at all levels of financial expertise.
Fundamentals of Personal Financial Specialist: Financial Planning Basics Quiz
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