Why Work With a CFP® Professional?

Many people attempt to manage their investments and financial planning without the assistance of a financial advisor. But working with a CERTIFIED FINANCIAL PLANNER™ professional adds value to your financial life. A CFP® professional — a financial advisor who has earned CFP® certification — can assist you in all areas of financial planning, providing holistic advice and behavioral coaching. They can help you achieve your financial goals in accordance with your risk tolerance, cash flows and tax management needs.

Why is it important to work with a financial advisor who has achieved CFP® certification?

There is a common misconception that all financial planners are automatically certified, but this is incorrect. Anyone can call themself a “financial planner.” However, to achieve CFP® certification, advisors need several years of practical experience providing financial advice and must pass the comprehensive CFP® Certification Exam. They must also commit to continuing education, keeping themselves up to date on financial trends.

On top of these rigorous requirements, CFP® professionals must adhere to stringent ethical standards — all CFP® professionals commit to CFP Board that they will act as a fiduciary, which means they avoid and mitigate conflicts of interest, acting in the best interests of the client at all times when providing financial advice. Additionally, they commit to CFP Board that they will comply with CFP Board’s Code of Ethics and Standards of Conduct.

If it appears a CFP® professional hasn’t upheld these ethical standards, they can be subject to investigation and potential discipline by CFP Board. As financial advisors, CFP® professionals are also obligated to adhere to basic regulatory reporting and supervision required by applicable regulators, such as the U.S. Securities and Exchange Commission, Financial Industry Regulatory Authority, state securities and insurance commissioners and/or bank trust regulators.

What is the value of working with a CFP® professional?

CFP® professionals are trained to address all the elements of financial planning. They can help you achieve your long-term goals, not just a single transaction. A CFP® professional can add significant value to your financial planning process in several ways:

1. Setting and supporting financial goals: A CFP® professional can assist you in clarifying your financial goals, prioritizing them and breaking them down into manageable steps.
2. Investing: CFP® professionals are well-versed in investment planning. They can guide you to avoid common investing mistakes and strategically choose investments aligned with your long-term goals. They can conduct due diligence on investments and monitor for any changes in the performance potential that may adversely impact you as their client.
3. Behavioral coaching: The CFP® certification curriculum now addresses the psychology of financial planning, which means your CFP® professional may help you examine your attitudes around money and build new financial habits, acting as a collaborative coach for your financial future. At the end of the day, you make the decision whether or not to follow financial recommendations.
4. Retirement planning: A CFP® professional counsels clients to plan and execute specific strategies to achieve retirement life goals. A CFP® professional can assist with both pre-retirement and post-retirement planning, preparing you for a financially comfortable retirement and then offering support in managing assets and adapting to changing circumstances during your retirement years.
5. Fiduciary: All CFP® professionals commit to CFP Board to act as a fiduciary as they provide financial advice to their clients. A client can also switch to a new financial advisor at any time if they do not feel that the professional is responding to their needs or achieving a reasonable return on investments or planning efforts. You’re never locked in to one CFP® professional or one financial plan.

Whether you need financial advice for a specific issue or you need a comprehensive financial plan, CFP® professionals help to achieve better financial outcomes for their clients. Prepare for your financial future by finding a CFP® professional today.