What is a Certified Financial Planner? What do Financial Planners Do?
A certified financial planner is someone who has proven to a certifying body that he or she has the education, experience and knowledge necessary to provide financial advice to his or her clients.
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The professional designation for ‘certified financial planner’ is CFP.
However, there are other certifications in the industry that are related to the field of certified financial planning.
Additional Definition and Overview of Certified Financial Planners
CFPs have the difficult job of teaching clients what they should do with their money, and then helping them do that.
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Money is a touchy subject.
People are often unsure how to handle it, how to make it grow, and what to do with it once they have it.
A certified financial planner helps his or her clients to figure such things out.
Because financial planners sometimes act as investment advisors, certification with a regulatory body is important.
Financial regulatory bodies, including the CFP Board, set a high standard of ethics, code of conduct, and oversight that certified financial planners have to follow.
This is critical in a business where so much money is involved, and where commissions sometimes come into play.
Certified financial planners help their customers with all aspects of their financial management.
This includes how to invest, what kinds of insurance they need, how to best manage their tax burden and more.
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