Financial planning is likely the most needed yet most misunderstood profession. There is a lack of clarity around the term financial planning due to the range of companies that claim to offer the service. These firms include brokerage firms, investment or insurance companies, and banks.

The field is further muddied by the variety of certificates issued for or from differing entities, such as the Securities and Exchange Commission (SEC), the Investment Management Consultants, and The American College.

But the level of expertise, professional standards, and code of ethics amongst the certificates vary widely. Only CFP - a Certified Financial Planner - is on par with CPAs, CLUs, and CFAs. It is a professional designation that requires years of education and experience, as well as adherence to a strict code of conduct.

The full financial planning process encompasses five topics areas to cover the bulk of an individual's financial exposure.

These include the planning process, risk management including insurance, investments management, retirement planning, as well as estate planning.

Those who have earned the CFP mark have demonstrated a solid basis in all of those subjects. Each area is tested thoroughly toward gaining a final designation, through 30 hours of examinations. This typically takes three years.

In addition, a candidate must have also have three years experience under the supervision of a CFP designate. Candidates must also have passed a fiduciary fitness standard and a background check. Plus there are a disciplinary process and 30 continuing education credits required biannually. Foremost, the code of ethics requires a CFP designate to place the client's interests first.

The CFP mark is the highest level of designation in the field of financial planning. Now there are over 60,000 professionals certified by the Certified Financial Standards Board to hold the CFP designation.

There are other financial planning designations, such as the SEC Registered Investment Adviser (RIA), the Certified Investment Management Consultant (CIMC), the Registered Financial Consultant (RFC), and the Chartered Financial Consultant (ChFC).

The breadth of education for those is not as broad nor are they considered a professional designations as much as a certificate. However, they do demonstrate a good knowledge of financial planning.

Despite all of these professionals available, statistics indicate that more than a third of individuals still look to friends, family, or colleagues for advice. Another third use the internet or other media for information.

The concept for financial planning developed in the US in the 70s, as the type of individual financial risks became more complex. The first class of graduates was in 1972 from the College of Financial Planning. In 1973, there were 42 graduates.

By the 1980s, twenty US colleges were offering financial planning degrees. Now there are more than 200 colleges.

The Certified Financial Standards Board was established in 1985 as an oversight body for financial planners who hold the CFP designation. By 1994, they developed the comprehensive framework for examinations and licensing for the mark. In 2004, the Financial Planning Standards Board began oversight of the CFP mark internationally.

The CFP Board fosters professional standards to better serve the public, as well as oversight of the education, examinations, and experience requirements. They also issue a CFP Consumers Guide to Financial Self-Defence which is available at their website at www.cfp.net.

The Financial Planning Association (FPA) is a self-governing group of Financial Planners, including CFPs and other designates. There are 23,850 members of the US Financial Planning Association, of which 69 percent are CFPs and 60 percent are SEC licensed.

Branches of the FPA now exist on each of the five continents and in over 30 countries. The FPA manages a Global Focus Forum for financial planners internationally. Patrice Horner is a participant for Bermuda.

More than ever, people need unbiased guidance in their financial affairs. A CFP professional can ensure all the areas are properly addressed. With more and more of us facing retirement in the next 10 to 20 years, people need to get serious about being prepared.

This is dually true after the market meltdown eroded asset balances by five to 20 percent over the last few years. The crises shed a critical light on the typical investment sales approach used at most banks and insurance companies, versus the planning methods utilised by qualified financial planners.

However, financial planning advisory services are evolving into firms from individual practioners. This provides economical administration and due diligence oversight, as well as better succession planning. It is predicted that there will be a sharp increase in the number of clients being served by an RIA firm with fiduciary advisors in the US, along with a decline in the traditional retail brokerage companies, according to the 2010 white paper on "The Future of the Financial Advisory Business" written by financial expert Bob Veres. "More Americans will seek financial advice in the next 10 years than any previous decade."

According to a recent Employee Benefit Research Institute poll cited by Veres, less than half of all workers have determined how much they will need to save for retirement. This is frightening considering how close many of them are to the event and how woefully they are prepared.

A similar 46 percent think they can survive on less than $500,000. They are likely to be in for a sudden shock at retirement. Of some 24 percent of those asked are expecting to work until 70 or older.

Despite the magnitude of assets that an individual needs to accumulate, some have trouble with the idea of paying fees for financial planning. What they fail to recognise, is that with proper financial guidance, they will save money.

According to Veres, a person with $1 million in assets could fund a two-week trip to Europe every year in savings from the planning process.

For those interested in more about a career in financial planning, the Financial Planning Association is hosting their annual conference in Denver Colorado from October 10 through 12.

More information on the conference including DVDs of the presentations, as well as applications for the new international membership is available at www.FPAnet.org.

The FPA also posts on their website information for individuals looking to learn about the importance of their personal financial plan.