Certified Financial Planner or CFP, What’s Their Role?

A Certified Financial Planner or CFP is professional and expert in financial planning. A CFP took a course and passed tough exams with the College for Financial Planning or the Certified Financial Planner Board of Standards. A CFP will help you plan about taxes, estate planning, portfolio management, and give you the best advise in acquiring an insurance.

Related: How to Find a Financial Advisor?

A CFP or Certified Financial Planner is making a living through professional fees. A wise investor will consult to a CFP before he will make an investment decision. If you are a newbie investor, it is advisable to talk to a certified financial planner. It will only cost you too much money if you will just rely on your own knowledge. A certified financial planner knows the market trends (might it be stock market, bonds, currencies, insurances).

If you are confused, kindly read the topic whether you hire a Certified Financial Planner or not.

Certified Financial Planner in USA

In USA, most of the CFP are CPAs (Certified Public Accountant). It is easy to take the board exam if you are already familiar with the financial terms. A CFP with accounting degree is much credible if he will give financial advise to his clients. Why? It is because a Registered Financial Planner that took accounting course can deliver financial topics compare to ordinary financial advisor. However, when choosing a CFP, make sure you hire the one with real-time experience. A CFP must have his own investment in stocks and mutual funds.

Related: 11 Questions to Ask a Financial Advisor

Hire a Certified Financial Planner

You can’t deny the fact that if you want to succeed in investing, you must hire a registered financial planner. Along the way, a CFP will gave an advice about asset allocation according to your age. A 25-year old investor’s asset allocating strategies is very different from a 45-year old investor’s asset allocating strategies.

Examples of Asset Allocations:
Here’s how you should distribute your investments according to your age;

1. Assets Allocation for Investors Age 65
2. Asset Allocation for Investors Age 45
3. Asset Allocation for Investors Age 30

This is the reason why you need a CFP. He will guide you until retirement and as we have define the meaning of a Certified Financial Planner – a CFP will help you not just retirement planning and taxes, in includes estate planning and portfolio management.