Obtaining the personal financial specialist credential.

• Author: Phelan, Sarah
• Position: AICPA credential

CPAs who specialize in personal financial planning may qualify for the Personal Financial Specialist (PFS) designation established by the AICPA. The credential is granted exclusively to CPAs with significant personal financial planning (PFP) experience who want to demonstrate their knowledge, skill and experience by earning the credential.

The credential is granted to CPAs who satisfy experience and knowledge requirements and provide references. To qualify for the PFS designation, a candidate must:

* Be a member in good standing of the AICPA;

* Hold a valid and unrevoked CPA certificate issued by a legally constituted state authority;

* Agree to comply with all the requirements for reaccredidation (in following years);

* Pass the PFS Examination; and

* Upon successful completion of the PFS exam, submit six references to substantiate working experience in PFP.

Finally, a candidate for the PFS credential must have at least 250 hours of experience in PFP activities in each of the three years preceding his initial application.

The candidate has to have at least some experience in each of the six following areas, but there is no specific or minimum amount of time required for any one area:

* PFP process;

* Personal income tax planning;

* Risk management planning;

* Investment planning;

* Retirement planning; and

* Estate planning.

There are many activities that may qualify as PFP experience. Some examples of qualifying activities include:

* Helping clients to establish their financial goals; organizing and analyzing data; performing time-value-of-money calculations for decisions such as refinancing a home.

* Advising clients on the Federal and state income tax consequences of their financial decisions, including matters such as timing income and deductions; taking retirement plan distributions; making gifts; setting up trusts; making property settlements; dividing up retirement plan assets at divorce; and paying alimony and child support.

* Analyzing clients' exposure to risk and reviewing with them methods for managing risk; advising clients on various types of insurance and their uses; planning for long-term health care for clients and their families; reviewing proposed policies to ensure clients' needs are satisfied; reviewing with clients the income and estate tax aspects of insurance coverage.

* Reviewing investment preferences and risk tolerance with clients, and helping them to develop investment strategies based on these considerations...