Would you go to a personal trainer who wasn’t certified?
How about a doctor or surgeon?
Day care facility?
Yeah, I didn’t think so.
Yes, I’m dead serious and I’ll wait a minute while you pick your jaw up from off the floor.
What is a CERTIFIED FINANCIAL PLANNER™ professional?
Below is an explanation from the CFP Board of Standards on the importance of hiring a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional when getting financial and investment advice…
- “From budgeting, to planning for retirement, to saving for education, to managing your taxes and your insurance coverage, “finances” doesn’t mean just one thing for most Americans — and “financial planning” means much more than just investing.
Bringing all the pieces of your financial life together is a challenging task.
Although many professionals may call themselves “financial planners,” CFP® professionals have completed extensive training and experience requirements and are held to rigorous ethical standards.”
Now, you might be thinking, “That’s all well and good, Tyler, but why does this matter?”
Why does it matter?
Below is another short video clip that illustrates the importance of hiring a financial planner who has attained or is working towards the CFP® certification (and what can inadvertently happen if you don’t)…
As you can see, all it takes for some folks to look like a “financial planner” is a new haircut, a fancy suit, and some big words.
But whether you’re just starting your career, or you’re nearing or in retirement, a CFP® professional is the only one you should trust with your financial planning and investment needs.
The “Gold Standard” in financial advice
A good financial advisor deals with much more than just investments.
Unless that advisor has attained or is working towards the CFP® certification though, the average consumer has no way of knowing whether or not their “financial advisor” has the necessary knowledge, skills, and abilities to provide comprehensive and competent financial advice.
Granted, just because someone is a CFP® professional, that doesn’t necessarily mean they’re a good financial advisor.
For example, many advisors operate on a strictly commission basis and these advisory relationships can be littered with conflicts of interest that might affect the quality and type of advice you receive.
So, what else should you look for in a prospective financial advisor?
In the meantime, make sure to look for the CFP® marks when narrowing down your options of who to hire as your financial advisor.
Of course, if you don’t mind trusting a DJ with your life savings, then you probably don’t need to worry about all this CFP® professional stuff.
For the rest of us though, look for the “gold standard” in financial advice.
Would you like help finding a CFP® professional?
We’ll talk more about what you’re looking for in a financial planner and explore whether or not it makes sense to pursue a possible advisory relationship with our firm.