A financial planner is an individual that helps corporations and individuals meet their financial goals. Certified Financial Planners (CFP) are registered investment advisers who are independent of any organization that offers investment advice. An individual that works with a certified financial planner will work with a team of experts that provide input into the best financial plans for clients.
In order to be certified, a financial planner must achieve a number of educational and experience milestones. A CFP board is made up of a minimum of seven members; two members must be CFPs that have a significant amount of industry experience as well as four additional members with significant business experience. The board must also include at least one professional planner and at least two individuals who have passed the CFP exam.
When you are working with a certified financial planner, you will work with a group of individuals that have years of experience in helping people set and achieve financial goals. They will look at your financial situation, your assets and liabilities, your retirement needs and objectives, and your lifestyle and preferences. This group of experts will help you identify your goals and develop a plan to reach them. They will take the time to learn about your situation, your assets, liabilities, income, expenses, net worth, and lifestyle preferences. They will discuss these matters with you and help you understand where you are in your financial goals and how you can move forward to achieve them.
The qualified professional financial planners that work for the CFP board are required to pass a comprehensive standardized test called the Certified Financial Planning (CFP) Examination. The CFP examination can be taken online and is offered online as well as at traditional colleges.
A CPF will be involved in your financial planning processes and will assist in estate planning and asset protection, retirement planning and investing in annuities, tax preparations and planning, estate planning, and liquidating and selling investments.