What is a CFP and Why You Should Hire One

A CFP® is someone who has completed two years of education, two years of experience, and passed a comprehensive exam. This individual has also committed to upholding the fiduciary standard that the CFP Board of Standards has been instrumental in implementing . A CFP is the top designation that a financial advisor can receive. The only thing above it is a doctorate, but the only people who pursue that are those who would prefer to teach than to advise.

A CFP does not necessarily guarantee that someone is a good advisor, but it does mean that they have demonstrated a high level of competence and professionalism in financial planning. They have to follow a strict code of ethics and meet continuing education requirements to maintain their certification . On the flip side, just because someone does not have a CFP does not mean that they are not a good advisor. There are other factors that can affect the quality of their service, such as their experience, reputation, communication skills, and fees.

Personally, I did not change much with how I ran my business when I received the CFP, but I still wanted to get it to show as proof that I am committed to this business and doing what is best for my clients. I think that having a CFP gives me an edge over other advisors who do not have it, as it shows that I have invested time and effort into learning the best practices and standards of financial planning. It also helps me to build trust and credibility with my clients, as they know that I have the knowledge and skills to help them achieve their financial goals.