Financial Advisor | Why You Should Work With A PPC

"Certified Financial Planner" - what does the title mean? When looking for a financial advisor, that means everything. Let me explain why the CFP designation is so important.

Today, the financial world is full of credentials and designations. Some respect, some aren 't. The CFP designation is undoubtedly the most respected. You really have to win. (There are some financial credentials transmitted to people just after the completion of a glorified sales course. The CFP designation is not one of them.)

It relies on education. To become a Certified Financial Planner professional, you have to study financial planning in a college or university (or at least, through an educational program) that offers a comprehensive financial planning. You also have to pass an exam administered 10 hours over two days (as a kind of bar exam), which includes financial planning, tax planning, employee benefits and retirement plans, estate planning, investment management and insurance issues.

It reflects the ethical standards and experience. Before you can get the certificate from the PPC, you must pass a stringent ethical review and agree to work for the CFP Board Code 's Ethics and Professional Responsibility. As a CFP professional, you should put the client's interests first and act "fairly and diligently" in providing financial planning advice and services. Services should be based? On the needs of the customer 's and comes with objectivity and integrity. You must also have at least three years experience working in the field of financial planning before you can obtain the CFP certification.

Must maintain these standards. As a person registered for the CFP, which has to be re-certified every two years. Which requires at least 30 hours of continuing education, so that you can be informed of the latest developments affecting the profession of financial planning. Two of the more than 30 hours must be devoted to studying the CFP Board Code 's Ethics and Professional Responsibility or Financial Planning Practice.

This is why the CFP designation is highly respected. Knowing all this, you should settle for any less qualified financial adviser? I doubt it.

The critical difference. Many people today call themselves "financial planners" without this kind of experience and knowledge. Many work with a mindset based on sales. Often, it will suggest an investment product as a financial solution. Very often, they receive a good commission from the sale of that product.

On the other hand, CFP professionals know that investments are only components of a comprehensive financial plan, no financial solutions themselves. We have education and experience to create integrated plans using not only financial investment but also strategies for tax reduction, wealth accumulation, wealth preservation and tax-efficient wealth transfer. We have the knowledge to plan long-term goals of our clients, and expertise to implement, monitor and review these plans through the years.

Choose a CFP. If you are looking for financial planning advice, you should first consult a physician certified financial planner. Talk to a professional PPC, and enjoy the confidence that comes from a meeting with a financial advisor truly educated and qualified.