Why Should You Care If You Work with a CFP^® Professional?

There are dozens of financial advisor certifications and designations—many of the newer credentials require relatively little coursework and training compared to the older, more established designations.¹ But, according to Kiplinger’s only 3 designations matter.² Those are CFP®, CFA, and CPA. Of course, business owners will hire a CPA (Certified Public Accountant) to help them with their accounting. And many investment banks hire CFAs (Chartered Financial Analysts) to deal with complex financials. But who hires a CFP®? You should. 

The Certified Financial Planner is largely recognized as the highest standard in the personal financial planning field.³ This is because of the significant amount of material that must be learned. A Certified Financial Planner® (CFP®) has to study for 18 to 24 months and usually puts in about 1000 hours of studying in order to learn the material and pass a rigorous exam.⁴ They must show competency in more than 100 topics, including retirement planning, stocks, bonds, taxes, and estate planning.⁵

But beyond the academic aspect of the certification, one of the most notable requirements of the CFP® is the fiduciary component. They are bound by high standards set by the CFP Board’s Code of Ethics.⁶ CFPs® pledge to uphold the principles honesty, integrity, competence, fairness, confidentiality, professionalism and diligence and outlined in that Code. Every CFP® HAS to put their clients’ needs ahead of his/her own.⁷ Most financial advisors do NOT have to do this—shocking, I know. The CFP® Board even monitors its members to make sure they continue to act as they should. 

A CFP® works with his or her clients to make sure the clients understand their options and make financial decisions appropriate to their situation and their goals, both short term and long term. The financial climate is complex and always changing. So the CFP® Board requires CFPs® to continue to learn about these changes. Every CFP® takes continuing education classes to make sure they are aware of the changes and understand what the changes mean for their clients.

Don’t settle for a financial advisor that makes commissions on what you are sold or makes more money if your portfolio has more transactions. Look for a Certified Financial Planner® that is fee-only for solid advice. This elite group of advisors will act in your best interest. Your future financial success may depend upon solid, honest advice from a knowledgeable fiduciary.

Tim Guthrie, CFP® has been a Certified Financial Planner® continuously since 1995. His firm, Bullseye Investment Management is a fee-only full fiduciary investment advisory firm with offices in Cincinnati, Dayton, Akron, Louisville, and Ashland. Everyone at our firm embraces the standards entailed by the CFP® Board. Any of our investment advisors would be happy to meet with you and find out about your concerns and answer any questions that you have about financial planning or investing. There is no cost or obligation for a meeting.