Comments on: Secrets Financial Advisors Never Tell – The Series. Day 1 – Certified Financial Planner http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/ WealthPilgrim.com Tue, 16 Mar 2010 10:03:11 -0800 http://wordpress.org/?v=abc hourly 1 By: Festival of Frugality #193 – G.I. Joe Edition | The Canadian Finance Blog http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1804 Festival of Frugality #193 – G.I. Joe Edition | The Canadian Finance Blog Tue, 01 Sep 2009 09:04:07 +0000 1059183782#comment-1804 [...] Pilgrim presents Secrets Financial Advisors Never Tell ? The Series. Day 1 ? Certified Financial Planner posted at Wealth Pilgrim: Money Management Advice, Financial Stress Management, & [...] [...] Pilgrim presents Secrets Financial Advisors Never Tell ? The Series. Day 1 ? Certified Financial Planner posted at Wealth Pilgrim: Money Management Advice, Financial Stress Management, & [...]

]]> By: Weekend reading: Summer BBQ edition http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1711 Weekend reading: Summer BBQ edition Sat, 22 Aug 2009 10:03:14 +0000 1059183782#comment-1711 [...] Wealth Pilgrim has been posting a very comprehensive series on financial advisers, with lots of (US-orientated) information for those who fancy going pro. Here’s the first. [...] [...] Wealth Pilgrim has been posting a very comprehensive series on financial advisers, with lots of (US-orientated) information for those who fancy going pro. Here’s the first. [...]

]]> By: Neal http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1697 Neal Fri, 21 Aug 2009 15:31:15 +0000 1059183782#comment-1697 No worries. No offense whatsoever. You made a good point and you helped clarify and you did it very nicely. I appreciate it. No worries. No offense whatsoever. You made a good point and you helped clarify and you did it very nicely. I appreciate it.

]]> By: Dylan http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1695 Dylan Fri, 21 Aug 2009 15:23:07 +0000 1059183782#comment-1695 I think you did a fine on making the pointing out that certification will not get an adviser clients or be ticket to an automatic successful business. I have a (bad) habit of blog commenting disproportionally in disagreement that agreement. I think you did a fine on making the pointing out that certification will not get an adviser clients or be ticket to an automatic successful business.

I have a (bad) habit of blog commenting disproportionally in disagreement that agreement.

]]> By: Neal http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1693 Neal Fri, 21 Aug 2009 15:17:30 +0000 1059183782#comment-1693 I don't disagree. I was trying to make the point that the CFP certification will not, in and of itself, get an adviser clients. I simply wanted to point out to the person who asked the question that the certification is not a ticket to an automatic successful business. I don’t disagree. I was trying to make the point that the CFP certification will not, in and of itself, get an adviser clients. I simply wanted to point out to the person who asked the question that the certification is not a ticket to an automatic successful business.

]]> By: Neal http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1691 Neal Fri, 21 Aug 2009 15:14:40 +0000 1059183782#comment-1691 Fantastic clarification. Helpful. Thanks. Fantastic clarification. Helpful. Thanks.

]]> By: Dylan http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1688 Dylan Fri, 21 Aug 2009 14:30:24 +0000 1059183782#comment-1688 You point out that "CFP®" is not a license, but it's not really a designation either. This is one of the points that sets the CFP® certification apart. From the CFP Board's publication on marks use: <i>The CFP® marks are not the equivalent of an educational degree, a professional designation, or a title.</i> And <i>"Designation" refers to a degree or title awarded to individuals who pass certain education and examination requirements of entities such as universities and associations, thereby attaining a degree. "Certification" refers to the approval by a certifying entity of certain qualities for specified goods or services offered by individuals or organizations. The requirements for a certification of services, such as financial planning, typically include rigorous education and examination programs.</i> This is important because, unlike the vast majority of professional designation granting organizations, the CFP Board is not a membership organization or school. The CFP Board's stakeholders are the public consumers of financial planning as much as it is the CFP® certificants. Professional membership organizations and educational institutions generally have a primary obligation to their members, students, and alumni. This interferes with objectivity when it comes to standard setting, regulation, and enforcement. The CFP Board exists for the actual purpose of standard setting, regulation, and enforcement; their primary obligation is to preserve the credibility CFP® marks. You point out that “CFP®” is not a license, but it’s not really a designation either. This is one of the points that sets the CFP® certification apart. From the CFP Board’s publication on marks use:

The CFP® marks are not the equivalent of an educational degree, a professional designation, or a title.

And

“Designation” refers to a degree or title awarded to individuals who pass certain education and examination requirements of entities such as universities and associations, thereby attaining a degree. “Certification” refers to the approval by a certifying entity of certain qualities for specified goods or services offered by individuals or organizations. The requirements for a certification of services, such as financial planning, typically include rigorous education and examination programs.

This is important because, unlike the vast majority of professional designation granting organizations, the CFP Board is not a membership organization or school. The CFP Board’s stakeholders are the public consumers of financial planning as much as it is the CFP® certificants. Professional membership organizations and educational institutions generally have a primary obligation to their members, students, and alumni. This interferes with objectivity when it comes to standard setting, regulation, and enforcement. The CFP Board exists for the actual purpose of standard setting, regulation, and enforcement; their primary obligation is to preserve the credibility CFP® marks.

]]> By: Kirk Kinder http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1682 Kirk Kinder Thu, 20 Aug 2009 21:34:24 +0000 1059183782#comment-1682 Actually, I sort of disagree with you. I think everyone should at least be pursuing the CFP when they enter the field. I often tell people that the CFP should be the de minimus requirement to hiring them. The CFP does not mean the planner is competent or acting in your best interest (yes, they require a fiduciary responsibility now, but they didn't a year ago. And, they don't have enforcement powers so many brokers with the CFP are not acting as fiduciaries). However, it shows that the planner is serious about learning and can take a holistic view of your finances and actually understand the various issues. Those without the CFP (or Chfc, CPA/PFS) are showing me that they don't take the profession seriously. The key question is still finding an advisor who has a fiduciary obligation to their client in all that they do. Some planners have the fiduciary requirement for the plan, but switch hats and take the suitability when they sell the product. So ask them if they are a fiduciary in ALL interaction with you. Actually, I sort of disagree with you. I think everyone should at least be pursuing the CFP when they enter the field. I often tell people that the CFP should be the de minimus requirement to hiring them.

The CFP does not mean the planner is competent or acting in your best interest (yes, they require a fiduciary responsibility now, but they didn’t a year ago. And, they don’t have enforcement powers so many brokers with the CFP are not acting as fiduciaries). However, it shows that the planner is serious about learning and can take a holistic view of your finances and actually understand the various issues.

Those without the CFP (or Chfc, CPA/PFS) are showing me that they don’t take the profession seriously.

The key question is still finding an advisor who has a fiduciary obligation to their client in all that they do. Some planners have the fiduciary requirement for the plan, but switch hats and take the suitability when they sell the product. So ask them if they are a fiduciary in ALL interaction with you.

]]> By: Secrets Financial Advisers Never Tell Series- Day 4 – Unless You Understand This Secret, You’ll Never Understand Financial Advisers http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1677 Secrets Financial Advisers Never Tell Series- Day 4 – Unless You Understand This Secret, You’ll Never Understand Financial Advisers Thu, 20 Aug 2009 12:43:32 +0000 1059183782#comment-1677 [...] might expect him to live up the CFP’s fiduciary responsibility requirement.  You’d expect him to put your interests above his own or his firm’s [...] [...] might expect him to live up the CFP’s fiduciary responsibility requirement.  You’d expect him to put your interests above his own or his firm’s [...]

]]> By: Secrets Financial Advisers Never Tell Series- Day 3 – Registered Investment Advisers http://wealthpilgrim.com/2009/08/secrets-financial-advisors-never-tell-the-series-day-1-certified-financial-planner/comment-page-1/#comment-1668 Secrets Financial Advisers Never Tell Series- Day 3 – Registered Investment Advisers Wed, 19 Aug 2009 14:02:40 +0000 1059183782#comment-1668 [...] Monday we spoke about Certified Financial Planners and yesterday we spoke about insurance agents and stockbrokers. Now let’s look at fee-based [...] [...] Monday we spoke about Certified Financial Planners and yesterday we spoke about insurance agents and stockbrokers. Now let’s look at fee-based [...]

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