How to choose a Certified Financial Planner (CFP).

What is a Certified Financial Planner (CFP), and how can you get one?

CFP Board of Standards designates a Certified Financial Planner (or CFP) as a financial professional who has met the CFP Board of Standards requirements.

The following requirements are required to become a Certified Financial Planner: A Bachelor's Degree or higher
- Completion of a CFP Board-Registered Education program.
Pass the CFP Certification Examination. This is a 10-hour exam.
- At least three years experience in personal financial planning
- Pass background checks
- Pay certification fees

Financial professionals must report their continuing education requirements every two years once they have become a CFP. This is to ensure that they keep up with industry changes fee-only financial planners.

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What is the difference between a CFP and other financial professionals? There are many types of financial professionals. It can be confusing to understand the various designations.

CFPs can create comprehensive financial plans for individuals and businesses. They are responsible for assessing your financial situation objectively, identifying problem areas and recommending the best options. A competent CFP must be knowledgeable in all aspects of financial planning, and how different strategies can be used to build a plan that suits your needs.

What is the best way to pay for CFP services? CFPs may be compensated in two ways. They may receive a commission if you buy a product or services they recommend. They may also ask for a flat fee or an hourly fee to provide their services. Many financial professionals combine commissions and fees. Before you agree to hire his or her services, be sure to discuss this with your planner.

How do I select a CFP? Your financial planner will be closely involved in every aspect of your wealth management. It is important to feel confident about the CFP you choose. Ask your family and friends for their opinions. It's a great place to start.

You can do some Internet searches about potential planners. You should be able tell a lot from a person's or a firm's online presence.

Check with the regulatory boards to verify if any complaints have been filed against the planner. CFP.net can be accessed as well as Finra.org and Sipc.org.
Give the CFP a phone call. It will help you decide if this planner is right for you.

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