How To Find A Certified Financial Planner

What is a CFP?

A certified financial planner is a blazon of fiscal counselor who possesses one of the most rigorous certifications for financial planning cognition. CFPs must have several years of experience related to financial planning, pass the CFP exam and adhere to a strict upstanding standard every bit set by the Certified Financial Planner Lath of Standards.

CFPs, unlike some other types of financial advisors, are held to a fiduciary standard, meaning they are obligated to deed in their client's best interest.

What does a certified financial planner, or CFP, do?

CFPs tin help you create and maintain a financial plan . A CFP might start by determining your financial goals and discussing your current financial situation and appetite for risk. A CFP can as well advise you lot on everything from choosing specific investments, saving for a down payment on a home and planning for retirement.

Some CFPs specialize in a certain area, such as divorce or retirement planning, while others tend to work with specific clients, like small-concern owners or retirees. Because of this, it's helpful to have an idea of the services yous need before yous choose a CFP.

How exercise I go a CFP?

It'due south not piece of cake to become a CFP, and for adept reason. Helping people navigate their finances is an important job. On average, it takes between 18 and 24 months to become a CFP, and can cost a minimum of $iv,000 (if you lot already have an undergraduate degree). Here'due south what else it takes:

Complete the education requirement. The CFP Board requires completion of specific coursework on financial planning and a bachelor's degree or college. Applicants have upwards to five years from the date they pass the test to receive their bachelor'southward caste.
Pass the exam. The test consists of 170 multiple-choice questions to be completed in a total of half-dozen hours. According to the CFP Lath, about 67% of first-fourth dimension exam-takers passed in 2019.
Gain professional person experience. To run across the experience requirement, prospective CFPs demand to complete either 6,000 hours of professional feel related to financial planning or 4,000 hours of apprenticeship that meets additional requirements. These hours tin can be completed either within 10 years before taking the exam or within five years later on passing it.
Adhere to the ethical standard. The last steps of condign a CFP are to sign the Ethics Declaration, in which you commit to acting as a fiduciary for your clients, and pass a background check conducted by the CFP Lath.

What is the difference between a CFP and a financial advisor?

A certified financial planner is ane of the many types of fiscal advisors . While "financial advisor" is a general term that does non necessarily announce whatsoever specific credential, CFPs agree a certification that ensures they have several years of experience and are held to a fiduciary standard.

Call up, if you have any doubts on your advisor's CFP status, you lot tin check the status on the CFP Board website.

CFP vs. CFA vs. ChFC vs. CPA

The diverse designations financial advisors hold can cause some confusion. More than oftentimes than non, a financial advisor who is a CFP will be able to assistance you with your fiscal planning needs, but other advisors may be able to meliorate assist you in sure areas, such as tax advising. Some advisors fifty-fifty have multiple designations, making them more competitive within their field. Here are a few common designations an advisor can take.

Chartered fiscal annotator: CFAs specialize in investment analysis and portfolio management. While CFPs typically help individual clients with their financial planning, CFAs ofttimes serve as financial advisors for corporations.

Chartered financial consultant: While ChFCs are less common than CFPs, the two certifications require similar coursework, and recipients of each are likely headed down the same career path: financial advisory and planning services. ChFCs may have more training in modernistic financial planning topics, such equally behavioral finance, planning for same-sex couples and planning after a divorce, simply CFPs have more stringent academic and examination requirements.

Certified public accountant: CPAs are a bit more singled-out from some of the other financial advisory certifications. The CPA certification is mutual among taxation preparers and accountants (even though CPA has the word "accountant" in it, not all accountants have CPA certifications). If your financial advisor has a CPA, they may be able to help y'all optimize your tax state of affairs.

Is it worth paying for a CFP?

Not everyone needs assist with their finances, but for those who practise, having a CFP in your corner can exist invaluable. If you aren't sure how to organize your finances, navigate investing or balance your financial priorities, a CFP can aid.

The 2020 Kitces Inquiry survey on financial planning plant that CFPs charge, on average, $1,800 or $ii,500 for a comprehensive financial program, $250 for hourly services and $4,000 for flat fee retainer services. And while there is no ready fee that CFPs charge, it's usually more what a non-certified counselor might charge. Online fiduciary financial advisors , some of which offer admission to CFPs, typically charge a small percentage of your avails under management, often betwixt 0.iii% and 0.ix%. (Read more virtually how much a fiscal counselor costs .)

Fee only vs. fee based financial counselor

It'due south also important to consider how exactly your advisor is getting paid. This is determined in part by whether they are a fee-only advisor or a fee-based advisor.

Fee-only advisors are solely paid past their clients, creating fewer opportunities for conflicts of interest. Fee-based advisors can receive a commission on products they sell, which can sometimes create those conflicts, such as suggesting a worse product over a better ane because they would receive a commission. Bound by their fiduciary duty, CFPs take to put their clients' needs starting time regardless of their fee construction (though it's always a skillful idea to ask any advisor, CFP or non, what their fee structure is, and to work with a fee-only counselor if possible).

How do I find a CFP?

Some online financial planning services offering admission to CFPs for less than what an in-person advisor charges. Bank check out some of our favorite services that include access to CFPs beneath.


NerdWallet rating	NerdWallet rating	NerdWallet rating
Learn More	Learn More than	Learn More
Fees 0.40% management fee	Fees $1,800 and upwardly per twelvemonth (costless initial consultation)	Fees 0% management fee
Business relationship minimum $100,000	Account minimum $0	Account minimum $0
Promotion Up to one year of free management with a qualifying deposit	Promotion Go ii free months off your outset year of fiscal planning.	Promotion Complimentary career counseling plus loan discounts with qualifying deposit

The CFP Lath offers a directory of all its certified CFPs, which makes it easy to detect an in-person advisor in your expanse. This site too allows you to check a CFP's certification status and check for whatever instances of disciplinary activity.