Why Use a Certified Financial Planner™ i.e. a CFP® Certificant?

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® Certificants 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® Certificants 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® Certificants must have a minimum of three year’s experience counseling clients on financial matters prior to earning the CFP® mark. 

Ethics – CFP® Certificants 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® Certificants must meet certain minimum continuing education requirements to retain the CFP® mark.

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. 

Objectivity – The CFP® is required to be objective about your finances.

Goals and Dreams – The CFP® Certificant is experienced in helping clients identify and stay focused on their goals and dreams.

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

Due Diligence – CFP® Certificant is required to perform due diligence to support recommendations.

Knowledge, Skill & Wisdom – The CFP® Certificant may bring to the table more of these attributes.

Recognition – Many organizations, institutions, publications, and the general public recognize the CFP® Certificant 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.