Why a CFP®
CFP® certification is recognized as the highest standard in personal financial planning.
A CFP® is a FIDUCIARY -- who must act in the best interests of their clients when providing financial advice. This is a commitment that CFPs make to the CFP Board as part of their certification
Although many advisors may call themselves “financial planners,” CFP® professionals have completed extensive training and experience requirements and are held to rigorous ethical standards. They understand the complexities of the changing financial climate and know how to make recommendations in your best interest.
Most people think all financial planners are “certified,” but this isn’t true. Only those who have fulfilled the certification and renewal requirements of CFP Board can display the CFP® certification trademarks which represent a high level of competency, ethics and professionalism. And because they are held to a fiduciary standard of care when providing financial planning services, a CFP® professional is required to act in your best interest.
David also holds the BFA or Behavioral Finance Advisor designation - A Behavioral Financial Advisor (BFA) is a specialized financial advisor that goes beyond just asset selection and allocation, but also offers practical services such behavioral advice to positively influence an individuals savings, spending, and investing habits. Behavioral financial advisors help their clients reduce the negative impact of behavioral biases by developing strategies to mitigate them. These strategies include developing investment plans based on long-term goals rather than short-term market trends or diversifying investments to reduce risk.
The Four E's of CFP® certification
Education
Unlike many financial advisors, CFP® professionals must develop their theoretical and practical knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by CFP Board. Applicants may also satisfy the education requirement by submitting a transcript review or previous financial planning-related course work.
Experience
CFP® professionals complete several years of experience related to delivering financial planning services to clients prior to earning the right to use the CFP® certification trademarks.
Ethics
When it comes to ethics and professional responsibility, CFP® professionals are held to the highest of standards, as outlined in CFP Board's Standards of Professional Conduct. They are obliged to uphold the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence as outlined in CFP Board’s Code of Ethics. The Rules of Conduct require CFP® professionals to put your interests ahead of their own at all times and to provide their financial planning services as a “fiduciary”—acting in the best interest of their financial planning clients. CFP® professionals are subject to CFP Board sanctions if they violate these standards.
Examination
CFP® professionals must pass the comprehensive CFP® Certification Exam, which tests their abilities to apply financial planning knowledge to real-life situations. The exam covers the financial planning process, tax planning, employee benefits and retirement planning, estate planning, investment management and insurance. This comprehensive exam ensures that a CFP® professional is highly qualified to develop a plan for your finances.
