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Why a CFP professional? Certified Financial
Planners do not just place orders for you, they review your individual
financial situation, discuss your goals and needs, inform you of
financial choices, devise plans that you can select from after you
first understanding the process and the concepts involved.
Then, with ongoing monitoring of your plans combined with the financial
changes in your life you can mutually decide on adjustments to your
initial plan. Financial planning is a process, not an event.
Most CFP professionals
are dedicated to using the financial planning process to serve the
financial needs of individual, families and businesses. Most
CFP professional have earned a four-year college degree in finance-related
areas, and have completed a course of study in financial planning
approved by the CFP Board. To earn the prestigious CFP designation
and remain licensed as a CFP professional, individuals must meet
four main requirements.
Examination - They must successfully
complete the CFP Board’s comprehensive certification examination,
which tests the individual’s knowledge on various key aspects of
financial planning.
Experience - They must acquire three to five years’ financial planning-related experience before receiving the right to use the CFP marks. Ethics - They must voluntarily ascribe
to the CFP Board’s code of ethics and additional requirements as
mandated. CFP licensees who violate the code can be disciplined,
including the permanent loss of the right to use the CFP marks.
Education - They must complete 30
hours of continuing education every two years to stay current in
financial planning knowledge, including ethics.
Compliance with these four all-important areas assures you that an individual who holds the CFP license is well prepared and qualified to give you sound, professional advice. As a result of
it's established recognition and credibility as a symbol of educational
competence and continue commitment to financial planning excellence,
FPA recommends the use of a Certified Financial Planner licensee
for your financial planning needs. There are also other credible
designations such as the Chartered Financial Consultant (ChFC) and
the Personal Financial Specialist (PFS), which have their roots
in financial disciplines such as insurance and accounting. How should I start looking for a planner? Ask for names from
friends or business associates who may have had good or bad relationships
with a financial planner. Attorneys, accountants, insurance
agents, bankers and other financial specialists also can be good
sources because planners often work with them to carry out a client’s
plan. Check with the SEC, appropriate state agencies, your
local Better Business Bureau and the CFP Board at 888-CFP-MARK (237-6275)
to determine if complaints have been filed against the planner you
are considering. Within this web site, you will find a list of local
CFP professionals that contains areas of practice and types of compensation.
Or you may call or e-mail the local chapter administrator at the
address shown.
How do I choose the right financial
planner for me?
Choosing a financial
planner is as important as choosing a doctor or lawyer. Working
with a financial planner is a very personal relationship.
In addition to competency, a financial planner should have integrity,
trust and a commitment to ethical behavior and high professional
standards. You want a planner who will put your needs and
interests first. We suggest you call several CFP professionals and
talk with them by phone or in person before deciding which fits
your particular needs. Realize that some work in limited geographic
areas and with specific client profiles. These characteristics
will become evident during the interview.
Do you need the services of a financial
planner?
How do you know if
you could benefit from the services of a qualified financial planner?
You may not have the expertise, the time or the desire to actively
plan and manage certain financial aspects of your life. You may
want help getting started. You may benefit from an objective,
third-party perspective on what are often emotional, difficult decisions.
And in today’s hectic world, it can be beneficial just to have a
financial expert working with you to double-check your planning
efforts and make sure you stay focused and follow through with your
financial plans. You chose a career other than financial planning
and your carreer required both formal education and actual experience
to hone your skills and become successful. We cannot be specialists
in everything. Choosing a financial professional that can
provide skills we do not have the time to accumulate on our own,
is not only prudent but efficient in lieu of the alternatives.
Specific Events that might prompt
you to seek the services of a planner
Regardless
of your financial condition or circumstance, you can benefit from
the input of a CFP professional. Waiting for a special event to
trigger a relationship negates the potential to plan for that special
event before it occurs or is even thought of. A Certified
Financial Planner can act alone or be a part of a team of professionals
working in concert with you and your family to maximize your financial
goals.
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