Choosing a Certified Financial Planner (CFP)

p>What is a Certified Financial Planner (CFP)?planning and the way various strategies can be used
A Certified Financial Planner, or CFP, is a financialto create a comprehensive plan suited to your needs.
professional who meets the requirements establishedHow do I pay for a CFP's services? There are two
by the CFP Board of Standards.ways that CFPs can be compensated. First, they
To become a Certified Financial Planner, the boardmay take a commission from a product or service
requires the following:that they sell you. Second, they may ask that you
- A Bachelor's degree, or higherpay a flat or hourly fee for their services. Some
- Complete a CFP Board-Registered Educationfinancial professionals use a hybrid of fees and
Program.commissions. Be sure to talk about this with your
- Pass the CFP Certification Examination, a 10 hourplanner before agreeing to engage his or her services.
examHow do I choose a CFP to work with? You will be
- Have at least three years of work experience inworking very closely with your financial planner on
personal financial planningevery aspect of your wealth management, so it's
- Pass a background checkimportant that you are completely confident with the
- Pay certification feesCFP you choose to work with. - Talk to your friends
Once they become a CFP, financial professionals areand family to see what their experiences are, it's a
required to report Continuing Education requirementsgood place to get started.
every other year, to insure they are keeping up with- Feel free to do some internet searches on
changes in the industry.prospective planners - you should be able to tell a lot
How does a CFP compare to other financialby a person's, or firm's, online presence.
professionals? There are many different types of- Don't hesitate to check with the various regulatory
financial professionals, and the "alphabet soup" ofboards to see if there has ever been a complaint
designations may be confusing.lodged against the planner. You can check CFP.net, as
CFPs are trained to develop comprehensive financialwell as Finra.org, and Sipc.org.
plans for individuals, businesses, and non-profit- Finally, give the CFP a call. If you set up a meeting,
organizations. It is their responsibility to objectivelyor even just start out with a long phone
assess your financial situation, troubleshoot problemconversation, it will give you a good idea of whether
areas, and recommend appropriate options. A goodthis is the planner for you.
CFP should be confident in all areas of financial