For decades, the CERTIFIED FINANCIAL PLANNER™ certification has been the standard of excellence for financial planners. CFP® professionals are financial planners who are held to strict ethical and performance standards and certified as such by the CFP® Board. In this article, we will discuss what a CFP® professional is and the advantages of hiring one.
The CFP® Certification
While almost anyone can use the title of “financial planner,” the same isn’t true for CFP® professionals. Individuals certified by the CFP® Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process. This process, known as “the four Es,” includes demanding education, examination, experience, and ethical requirements.
Education: All CFP® professionals must complete a four-year bachelor’s degree program approved by the CFP® Board at an accredited university. Graduates will have an in-depth understanding of a wide range of financial planning disciplines including Financial Management, Investment Planning, Retirement Planning, Tax Planning, and more.
Examination: CFP® practitioners must pass a comprehensive exam that tests their ability to apply financial planning knowledge to real-life situations. The pass rate of this rigorous 2-day exam typically ranges between 55% and 60%.
Experience: Prospective CFP® certificants will acquire at least 4,000 hours of relevant financial planning experience before they earn the right to use the CFP® marks. Through this extensive preparation, they obtain the financial counseling skills required to provide services to the public.
Ethics: As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as the CFP® Board’s Code of Ethics and Professional Responsibility. Additionally, certificants undergo a thorough criminal and professional background check prior to earning their designation.
Advantages of Working with a CFP® Professional
Managing your finances on your own can be intimidating and time-consuming. Working with a CFP® professional will help alleviate that responsibility and give you the financial confidence to achieve your goals and dreams.
1. Trusted Fiduciaries
You might be surprised to learn that not all financial advisors are required to work in their client’s best interest. However, all CFP® professionals are sworn fiduciaries. As fiduciaries, they must put their client’s financial best interests before their own and disclose all conflicts of interest.
2. Life-Long Learners
Once certified, CFP® practitioners are expected to maintain technical competence and fulfill ethical obligations. Every 2 years, they must complete a minimum of 30 hours of continuing education. This ensures that they stay current with developments in the financial planning profession, so they can better serve their clients with comprehensive guidance through every life change.
3. Encouragement and Coaching
Setting a holistic financial plan in motion is challenging, ongoing work, but having a professional in your corner while doing so makes a big difference. The comprehensive experience that all CFP® professionals have allows them to handle any financial planning situation that may arise with intelligence, insight, and care. Being able to turn to a CFP® practitioner for counsel will alleviate some of your financial stress and give you peace of mind.
4. Consumer Protection
The CFP® Board cares about consumer protection. The process that every financial planner must go through to earn their CFP® marks ensures that they are not only the most qualified planners out there, but also that they are held to rigorous professional and ethical standards. The steps the CFP® Board has taken to enforce the Code and Standards – including releasing public disciplinary information – distinguishes the CFP® certification from other credentials in the financial services profession.
The CFP® Professional Difference
CFP® professionals have the credentials and qualifications that truly set them apart from the average financial planner. The education, examination, experience, and ethics that every CFP® practitioner holds ensures they are highly qualified to develop holistic plans and sophisticated advice for your financial life. You can have confidence that you are partnering with a financial advisor who will put you on the path to a secure future.
Trinity Wealth Management
If you’re looking to work with a CFP® professional, look no further than Trinity Wealth Management. All of our financial advisors are fiduciaries, and we have a team of CFP® professionals who will help you create a holistic financial plan to live the life you want. Contact us today to speak with a CERTIFIED FINANCIAL PLANNER™ professional.
The commentary on this website reflects the personal opinions, viewpoints, and analyses of the Trinity Wealth Management, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Trinity Wealth Management, LLC or performance returns of any Trinity Wealth Management, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Trinity Wealth Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
