Comments on: What Exactly Is A Certified Financial Planner, And Why Should I Care? http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 08:34:37 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: deRuiter http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/comment-page-1/#comment-832624 deRuiter Sun, 20 Dec 2009 12:34:41 +0000 http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/#comment-832624 If I HAD to find a CFP, I'd interview him / her! Is your home paid for in full? May I see a copy of your portfolio? Do you have credit card debt? Let's see your credit card statements. Why are you a CFP? Let's face it, if the CFPO is all that brilliant, what does he need with YOU and your piddly little account? (Not YOU personally, anyone reading this, what does he need with any "little people"? Too often he / she is some schlub who's in debt up to his ears. Step back folks, and think of what the CDFP wants. He wants your money in comissions! DEAL ONLY WITH A FEE BASED PLANNER IF YOU FEEL YOU ARE TOO CLUELESS TO MANAGE YOUR OWN MONEY. On the other hand, you can get most of the knowledge you need by reading Trent's blog for free! 1. Spend less than you save 2. Invest. 3. Prepay on your home loan the first half of the mortgage, if you're not planning to move in five year or less 4. Diversify your investments 5. never stop looking to make /save, a few more dollars, 6. Don't buy what you don't need. Most CFPs are no better off financially than the rest of the wold unless they're smooth salesmen who have convinced a lot of people to let them churn their accounts. FOLKS, YOU CAN DO IT ON YOUR OWN BETTER, FOR FREE, FEEL MORE SECURE THAT NO ONE IS LYING TO YOU TO GET A COMMISSION, AND PAY BY FEE FOR ANY BITS OF ADVICE YOU NEED LIKE A COMPLICATED TRUST. If I HAD to find a CFP, I’d interview him / her! Is your home paid for in full? May I see a copy of your portfolio? Do you have credit card debt? Let’s see your credit card statements. Why are you a CFP? Let’s face it, if the CFPO is all that brilliant, what does he need with YOU and your piddly little account? (Not YOU personally, anyone reading this, what does he need with any “little people”? Too often he / she is some schlub who’s in debt up to his ears. Step back folks, and think of what the CDFP wants. He wants your money in comissions! DEAL ONLY WITH A FEE BASED PLANNER IF YOU FEEL YOU ARE TOO CLUELESS TO MANAGE YOUR OWN MONEY. On the other hand, you can get most of the knowledge you need by reading Trent’s blog for free! 1. Spend less than you save 2. Invest. 3. Prepay on your home loan the first half of the mortgage, if you’re not planning to move in five year or less 4. Diversify your investments 5. never stop looking to make /save, a few more dollars, 6. Don’t buy what you don’t need. Most CFPs are no better off financially than the rest of the wold unless they’re smooth salesmen who have convinced a lot of people to let them churn their accounts. FOLKS, YOU CAN DO IT ON YOUR OWN BETTER, FOR FREE, FEEL MORE SECURE THAT NO ONE IS LYING TO YOU TO GET A COMMISSION, AND PAY BY FEE FOR ANY BITS OF ADVICE YOU NEED LIKE A COMPLICATED TRUST.

]]> By: rodgerlvu http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/comment-page-1/#comment-663152 rodgerlvu Fri, 15 May 2009 07:36:45 +0000 http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/#comment-663152 thanks. you are the most intelligent person i ever met... thanks. you are the most intelligent person i ever met…

]]> By: moneysmartlife http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/comment-page-1/#comment-1198 moneysmartlife Sat, 16 Dec 2006 20:25:14 +0000 http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/#comment-1198 The great thing about a CFP is that they have a broad range of knowledge about personal finance issues, not just about investing. You can see what a person has to do to become a CFP at www.cfp.net/become/certification.asp. My take, if you're hiring a financial planner, get a good reference and make sure they are a CFP, ours is. The great thing about a CFP is that they have a broad range of knowledge about personal finance issues, not just about investing. You can see what a person has to do to become a CFP at
http://www.cfp.net/become/certification.asp.

My take, if you’re hiring a financial planner, get a good reference and make sure they are a CFP, ours is.

]]> By: Bob http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/comment-page-1/#comment-1173 Bob Fri, 15 Dec 2006 22:50:44 +0000 http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/#comment-1173 I agree with the previous commenter. Too say that a Certified Financial Planner "has at least gone through some form of training and passed an exam that indicates at least some knowledge of basic personal finance issues" is a little generic. If a person has taken the courses and passed the exam then they know more than "some knowledge". I've completed the courses. However, I have not taken the exam yet. The exam is about 10 hours and has a 60% pass rate. And from what I've heard the board keeps trying to make the exam harder to decrease the current pass rate. Yes, some bad (unethical/immoral) Financial Advisors "slip" through or "green" to the industry Financial Advisors have passed the requirements. Overall, the CFP designation is a good thing to look for, but not the only thing. If you combine the CFP certification, with references and then agree with their form of compensation (there is a big wave of fee based or ala carte financial planners, compared to commission based advisors); that should be a good start. PS - You refer to the Certified Financial Planner as a Certified Financial Advisor in Paragraph 4. This is an incorrect reference. I agree with the previous commenter.

Too say that a Certified Financial Planner “has at least gone through some form of training and passed an exam that indicates at least some knowledge of basic personal finance issues” is a little generic. If a person has taken the courses and passed the exam then they know more than “some knowledge”. I’ve completed the courses. However, I have not taken the exam yet. The exam is about 10 hours and has a 60% pass rate. And from what I’ve heard the board keeps trying to make the exam harder to decrease the current pass rate.

Yes, some bad (unethical/immoral) Financial Advisors “slip” through or “green” to the industry Financial Advisors have passed the requirements. Overall, the CFP designation is a good thing to look for, but not the only thing. If you combine the CFP certification, with references and then agree with their form of compensation (there is a big wave of fee based or ala carte financial planners, compared to commission based advisors); that should be a good start.

PS – You refer to the Certified Financial Planner as a Certified Financial Advisor in Paragraph 4. This is an incorrect reference.

]]> By: Jeremy http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/comment-page-1/#comment-1170 Jeremy Fri, 15 Dec 2006 21:38:33 +0000 http://www.thesimpledollar.com/2006/12/15/what-exactly-is-a-certified-financial-planner-and-why-should-i-care/#comment-1170 Think of a CFP as the financial planning equivalent of a CPA when it comes to accounting. You don't have to be a CPA to be an accountant or help someone with their taxes, just like you don't have to be a CPA to be a financial planner or advisor. In either instance the tests required to obtain the certification are very difficult to complete so someone who has earned the designation more than likely has quite a bit of knowledge in the respective field. Advisors are a dime a dozen and nearly anyone can call themselves a financial advisor. Get yourself a few NASD licenses and work for nearly any financial firm and you could be an advisor. Even people who are nothing more than stock brokers can call themselves that. If you work with an advisor who is a CFP, you can be assured you are working with someone who at least knows something about all aspects of personal finance as opposed to someone at your bank or another firm who only sells mutual funds and calls themselves an advisor. I used to be an "advisor" and began studying for the CFP but ended up getting out of the advisory business and now have no reason to gain the certification. Think of a CFP as the financial planning equivalent of a CPA when it comes to accounting. You don’t have to be a CPA to be an accountant or help someone with their taxes, just like you don’t have to be a CPA to be a financial planner or advisor.

In either instance the tests required to obtain the certification are very difficult to complete so someone who has earned the designation more than likely has quite a bit of knowledge in the respective field.

Advisors are a dime a dozen and nearly anyone can call themselves a financial advisor. Get yourself a few NASD licenses and work for nearly any financial firm and you could be an advisor. Even people who are nothing more than stock brokers can call themselves that.

If you work with an advisor who is a CFP, you can be assured you are working with someone who at least knows something about all aspects of personal finance as opposed to someone at your bank or another firm who only sells mutual funds and calls themselves an advisor.

I used to be an “advisor” and began studying for the CFP but ended up getting out of the advisory business and now have no reason to gain the certification.

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