Hire a Certified Financial Planner (CFP) or Not?

Posted by Grace under Personal Finance on December 6, 2014

Should I hire a certified financial planner or do the personal finance management or investing alone? Let me share some point of views!

A certified financial planner (CFP) has an important role to your financial success. A reader of InvestmentTotal.com asked this question; should I hire or consult to a certified financial planner (CFP) before I invest? Let us answer this question in a short and concise manner. A certified financial planner (CFP) actually makes money from his financial consultation to his clients. It is their duty to inform us (the investors) how to plan our financial future or in short they really know how to retire rich and comfortably. They exactly know which investment vehicle is suited to his client’s needs.


A certified financial planner knows everything about market trends, the ups and downs, the high and lows, etc. A certified financial planner also determining and analyzing the financial risk involve especially when his clients (investor) decided to invest in a particular financial instruments.

Certified Financial Planner Explains Everything

He explains very well the risks and all possible things that might happen during the investing period. A certified financial planner is confident in explaining the profits and more confident in explaining the possible loss of capital. Some financial advisors are explaining only the possible ROI (return on investments) because they just want to attract the clients on what they are offering. Usually, financial advisors are affiliated to a financial institutions or firms that offer insurances and mutual funds. It means, if the financial advisor convinced the client to invest, they make sale or earned commissions.

CFP or Financial Advisor

Financial advisors has a big difference from a certified financial planner, a certified financial planner (CFP) on the other hand, make sure that his clients will decide according to financial needs and situations. A certified financial planner is willing to help the clients in making a risk profiling test while the financial advisor will only help you to open an account, fund your account and invest without assessing the risk profile of the clients promptly.

If you are ready to invest your money, do not ask the financial advisors affiliated to any financial firms offering investment products. Ask the certified financial planner (CFP) so that you can get the best guide and advice from starting point to finish line. What I mean is, a certified financial planner (CFP)  can help you to draw a financial map to follow, a financial goal and he will let you think what’s the best and suitable for you as an investor. A certified financial planner will never make you uncomfortable during market crashed because from the start he explained to you about the possible losses from your capital.

And the best thing is, you can get the best advice on what to do to your investments if something happened to the market place; falling or rising. A financial advisor won’t give you a sound advice, because sometimes even himself don’t know what to do when there is a market crash. A certified planner will help you from scratch. Even zero knowledge “wanna” be investor can become knowledgeable and experts in investing if he will take the advice of a certified financial planner.

Hire a Certified Financial Planner Because they are Highly Educated

Trivia: CFP in North America and Europe such USA, Canada, UK, Italy etc, in other countries CFPs are RFPs or the registered financial planner.  A certified financial planner studied everything about finances. Some of them are accountant or lawyers, they just added “financial planning” as their career. It simply means, the certified financial planners are highly educated people. They will never become a CFP if they didn’t pass the CFP board examinations.

Situational Example: You want to invest $10,000 a month and your plan is to “do-it-yourself”, every month you are losing 2% of your investments because you don’t really know what is happening. On the other side, a certified financial planner fee will cost you $200 per month (example CFP fee only). You are taking risk with your $10,000 but don’t want to pay $200 to get the best information you really need to make profits and succeed until you retire. Therefore, you want to lose $200 per month rather than making a profit of more than $200 per month. Is that what you want?

Hire a  Certified Financial Planner Now!

Answer to the question; should I hire a certified financial planner (CFP) before I invest? The answer is absolutely YES for investors who want to succeed and NO for investors who wants to fail. Rich people hire people who are smarter than them, it simply means rich people use other people skills and expertise to succeed not only in business but in finances as a whole. Are you a rich investor or a poor investor? I hope this article help you to find the best answer whether to hire or not to hire a certified financial planner (CFP).

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