Why use a Certified Financial Planner™ i.e. a CFP® Practitioner?

A lot of people believe that all advisors who call themselves “financial planners” “financial advisors” or “financial counselors” are “certified” professionals, meaning they have met rigorous entrance criteria and standards. This is simply not always true. Allow us to explain.

Examination - CFP® Practitioners have passed a comprehensive two-day, 10 hour CFP® Certification Examination that tests ability to apply knowledge in 101 different financial areas. Broadly speaking, the exam covers the financial planning process, tax planning, employee benefits and retirement planning, estate planning, investment management, and insurance.

Education - most CFP® Practitioners have completed a comprehensive course of study at a college or university offering the uniform financial planning curriculum approved by the Certified Financial Planner Board of Standards. Such a curriculum typically lasts up to three years.

Experience - CFP® Practitioners must have a minimum of three year’s experience counseling clients on financial matters prior to earning the CFP® mark. As a result, CFP® Practitioners possess financial counseling skills in addition to their financial planning knowledge.

Ethics – CFP® Practitioners must abide by a strict code of ethics. They agree to act fairly and diligently, they must put the client’s interests first, they must act with integrity, they must offer services suitable to the client’s needs, and adhere to many other strict standards of practice.

Continuing Education - CFP® Practitioners must meet certain minimum continuing education requirements to retain the CFP® mark. Usually changes in financial matters require much more than the minimum.

In addition to these basic distinctions between those who call themselves “financial planners” or “financial advisors” there are other reasons why using a professional for the most important decisions you and your loved ones will make is the prudent path to take.

Time – You may not have the time to manage your own finances well. Reflect for a moment. How much time do you spend on your investment portfolio every week? How much time to you spend evaluating the conditions of our economy?

Objectivity – You may not  be objective about your own finances.

Goals and Dreams – The CFP® Practitioner is experienced in helping you identify and stay focused on goals and dreams.

Organization – The CFP® Practitioner will help bring order to your finances.

Due Diligence – Chances are the CFP® Practitioner will do far more due diligence in recommending products and investments.

Knowledge, Skill & Wisdom – Chances are the CFP® Practitioner will bring to the table a lot more of these attributes than either you or a nonprofessional.

Recognition – Many organizations, institutions, publications, and the general public recognize the CFP® Practitioner as the “gold standard” of the financial planning profession.

CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, inc. These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.