Why Hire a Certified Financial Planner?

by Glen D. Smith

If you have ever considered hiring a financial advisor, you may have noticed some of them have a “CFP” acronym at the end of their name. CFP® stands for Certified Financial Planner and is a critical designation to have when managing your money or giving you financial advice.

A CERTIFIED FINANCIAL PLANNER™ Professional has gone through the requisite education and passed the CFP exam, which means they meet or exceed the requirements of the CFP board. We are proud to have Glen D. Smith, CFP® as part of our team, to assist in the effective management of all our client’s financial services.

We’re going to look at why hiring a CERTIFIED FINANCIAL PLANNER™ Professional is best for not only your money but you and your loved ones as well.

CFP Board

CERTIFIED FINANCIAL PLANNER™ Professionals are held to the highest standards of ethics by the CFP Board. The directors have the right and ability to remove the CFP designation from any financial planner who has violated their strict code of ethics.

The CFP Board protects people from predatory financial advisors by making sure all CFP’s adhere to the rules and regulations of the organization. Financial planners will spend years preparing for the exam and must have relevant work experience.

They must also renew their membership every year by completing at least 25 hours of continuing education and abide by the Standards of Professional Responsibility.

For Financial Planners to obtain and use the CFP® marks, they must adhere to the following four requirements:

Experience – CFP’s must have at least three years of full-time financial planning employment or relevant experience (2,000 hours per calendar year).

Education – Completion of a college-level financial planning course and graduation with a bachelor’s degree from an accredited college or university is also required.

Exam – The CFP exam contains real-world scenarios and case studies that applicants must apply their knowledge to pass successfully. The exam will test the ability of an applicant to correctly diagnose one of several financial planning issues and apply their knowledge to real-world scenarios.

Ethics – This is what separates CFP’s from other financial planners and is one of the main reasons why their services are in such high demand. CFP’s must agree to be bound by a strict set of ethical rules and standards that govern how they operate.

When someone hires a CERTIFIED FINANCIAL PLANNER™ Professional, they know they’ll be working with someone who has a strict ethical and fiduciary duty to put their best interests and wishes first off and foremost.

Expertise

Without a doubt, one of the most significant benefits of hiring a CFP is the value of their years (or even decades) of experience. While anyone can set up an eTrade account, perform basic investing, or create an IRA, a certified financial planner can streamline the entire process, and add additional value by giving you their professional advice.

The greatest benefit to hiring a CFP is the ongoing relationship you will have with them.  This comes in real handy when an unexpected life change happens.  They will advise you on the best course correction after the life event has occurred. They can also provide “what if” scenarios and give you the best options to choose from.

Certified Financial Planner in Flower Mound

While many people can handle their financial affairs, the value that a CFP brings to the table makes them invaluable. For example, while you could change the alternator in your car when it goes out, it’s much easier and more cost-effective to let a mechanic who specializes in those kinds of repairs handle the job.  Their professional eyes will also be on the lookout for anything else wrong with your car that they will bring to your attention.

The same goes for a CFP. The valuable advice and strict code of ethics that they offer is why many people specifically seek them out over any other kind of financial planner. If you live in the Flower Mound area and would like to speak to a with Glen D Smith, CFP® give us a call at (469) 212-8072.

At Glen D. Smith and Associates, we strive to be a partner for the long-term financial success of our clients.  We go the extra mile by taking the time to personally know and understand the financial situation of each of our clients, so we can strategically address and help meet their needs.

Glen D. Smith & Associates, Raymond James is located at 1029 Long Prairie Road, Suite C, Flower Mound, TX 75022. (469) 212-8072.

Any opinions are those of Glen D. Smith and not necessarily those of RJFS or Raymond James. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. “Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Glen D. Smith and Associates is not a registered broker/dealer and is independent of Raymond James Financial Services”