There are dozens of financial designations for industry professionals, and any planner can call himself or herself a financial planner. However, the Certified Financial Planner\u2122 designation stands alone in its offerings and trustworthiness. <\/p>\n
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At Financial Freedom all firm members are Certified Financial Planner\u2122 professionals. Our fee-only, retainer-based approach to your financial planning needs ensures that your needs and best interests are placed ahead of our own. <\/p>\n
Here are five reasons why the only advisors you should consider when you are seeking financial planning services should be fiduciary<\/a> <\/strong><\/span>Certified Financial Planners\u2122.<\/p>\n <\/p>\n Ready to talk with a fee-only fiduciary financial advisor? Contact Financial Freedom to see how we can help.<\/i><\/strong><\/a><\/span><\/p>\n Financial relationships involve trust, and some clients, unfortunately, may trust a financial professional who does not deserve that trust. Sometimes planners fail to meet high standards for conduct because they are not fiduciaries, meaning that they do not need to put their clients\u2019 needs before their own. <\/p>\n As the public and lawmakers become more aware of the risk that non-fiduciary relationships may pose to clients, stricter fiduciary legislation has been proposed. However, currently, most personal bankers, insurance agents, and stockbrokers are only required to offer \u201csuitable\u201d suggestions, meaning they serve more as salespeople than true advisors. Their advice must be appropriate for the client, but the planner can also consider his or her own financial best interest in making recommendations.<\/p>\n However, all CFP\u00aes, regardless of how they charge their fees, are held to a fiduciary standard.<\/a> <\/strong><\/span>They must believe (and be able to explain why, if necessary) that their recommendations are in their client\u2019s best interest. CFP\u00aes also abide by a code of ethics and follow the best practices the CFP\u00ae organization has developed. In short, CFP\u00aes provide a level of trustworthiness other planners cannot offer their clients.<\/p>\n <\/p>\n Financial planners must complete a considerable list of requirements to become Certified Financial Planners\u2122. These are called the \u201cFour E\u2019s\u201d requirements: education, examination, experience, and ethics. <\/i><\/p>\n To meet their education requirements, planners must hold a bachelor\u2019s degree as well as complete seven college-level financial planning courses authorized by the CFP\u00ae Board. The financial planning courses cover the basic principles of financial planning, as well as insurance, investment, estate, income tax, and retirement planning, followed up with a comprehensive capstone course.<\/p>\n Next, the applicant must take and pass the extensive CFP\u00ae exam. In the financial services industry, exams for popular designations like the Series 7 securities license may sound impressive, but they rely on pure memorization and require little preparation. <\/p>\n However, the CFP\u00ae exam is dramatically different. It is difficult (its average pass rate is a little over 50%), takes a substantial amount of preparation and studying to pass, and requires in-depth critical thinking skills. The questions are designed to evaluate test-takers on their ability to appropriately apply their financial planning knowledge to hypothetical situations.<\/p>\n Third, the planner must fulfill a certain length of work experience in the financial services industry. For the standard certification path, this is a minimum of three years of full-time relevant work experience.<\/p>\n Finally, planners must adhere to the CFP\u00ae Code of Ethics and Standards of Conduct<\/a>.<\/strong> <\/span>They must pass a thorough background check that assesses not just the criminal history of the applicant but also any financial, civil, and government proceedings, employment termination reviews, and customer complaints.<\/p>\n These requirements are designed to instill confidence in clients that their financial planner has the qualifications and experience necessary to manage their investments or advise them on financial decisions. Less than 20% of practicing financial planners hold a CFP\u00ae designation, meaning that these professionals are truly in their own class.<\/p>\n <\/p>\n CFP\u00aes are required to complete ongoing education to maintain their certification. The current requirement is to fulfill at least 28 hours of continuing education credit in approved financial planning content areas and two hours in ethics education every two years. <\/p>\n This requirement ensures that planners stay informed on the latest developments relevant to financial planning legislation (such as the new fiduciary rule from the Department of Labor), as well as new industry practices and potential services that could better serve clients.<\/p>\n <\/p>\n Because the CFP\u00ae exam is difficult and the other certification requirements require significant time investments, the CFP\u00ae certification is a prestigious designation. It is the industry standard for clients looking for comprehensive financial planning<\/a>,<\/strong><\/span> and planners are recognized as educated and experienced in all areas of personal financial planning as well as application of this knowledge, meaning that the value they provide is greater than the sum of its parts. CFP\u00aes can synthesize their extensive knowledge to identify blind spots and areas to improve in their client\u2019s current financial plan. <\/p>\n The CFP\u00ae Board is committed to ensuring that the CFP\u00ae designation remains the industry standard. It conducts ongoing research on the state of financial planning to evaluate clients\u2019 perceptions and opinions and guide decisions in how CFP\u00aes can better meet their clients\u2019 needs. <\/p>\n A recent nationwide survey the Board conducted found that almost all respondents believed that personal financial planners should follow professional practice standards and be held to a code of ethics. The majority (85%) of respondents also reported that it was important for planners to hold an industry certification.<\/p>\n <\/p>\n More than just a professional designation, the CFP\u00ae organization works actively to further the education of CFP\u00aes, to monitor its own financial planners, and to educate the public. In its advertisements and consumer outreach efforts, the organization communicates the importance of working only with a fiduciary standard of care advisors and those who are held to high professional and ethical standards.<\/p>\n Holding a CFP\u00ae designation is an ongoing process that the CFP\u00ae Board oversees. In addition to requiring planners complete continuing education credits to maintain their eligibility, the CFP\u00ae Board can remove planners\u2019 designation for other findings, such as unethical behavior that violates the CFP\u2019s\u00ae Code of Ethics, even if the violation does not occur during work.<\/p>\n Due to the thorough background check, most unethical planners (such as those who \u201cchurn\u201d their clients\u2019 portfolios to generate transaction fees or recommend insurance policies that generate the highest commissions to the planner) will not pass the final requirements. However, for those few who slip through the cracks, the CFP\u00ae Board can quickly investigate and will de-certify planners found guilty of violating the CFP\u2019s\u00ae ethical standards and best practices. <\/p>\n <\/p>\n Certified Financial Planners\u2122 offer a level of experience and skill no other certification in the financial planning industry can offer clients. CFP\u00aes provide unbiased advice, the perspective of understanding all components of their clients\u2019 financial plan, and the peace of mind that comes from knowing that the planner is monitored by an active Board that is dedicated to ensuring that CFP\u00aes provide the highest quality advice and always work for their clients\u2019 best interests.<\/p>\n Financial Freedom Fee-Only<\/a> <\/strong><\/span>Wealth Management has been providing comprehensive financial planning for over 30 years. We are here to help you reach your life and financial goals. Contact us<\/a> <\/strong><\/span>today to see if we are a good fit for your wealth management needs.<\/p>\n","protected":false},"excerpt":{"rendered":" There are dozens of financial designations for industry professionals, and any planner can call himself or herself a financial planner. However, the Certified Financial Planner\u2122 designation stands alone in its offerings and trustworthiness. <\/p>\n","protected":false},"author":13,"featured_media":1325,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[5,12,7],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\n <\/h3>\n
1) Fiduciary Responsibility<\/strong><\/h3>\n
2) Extensive Certification Process<\/strong><\/h3>\n
3) Ongoing Education Requirements<\/strong><\/h3>\n
4) The Industry Standard<\/strong><\/h3>\n
5) Active Consumer Protection<\/strong><\/h3>\n
Conclusion<\/strong><\/h3>\n