Certified Financial Planner (CFP) ???

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Grinder12000
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Certified Financial Planner (CFP) ???

Post by Grinder12000 » Mon Sep 25, 2017 9:38 pm

If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?

123
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Re: Certified Financial Planner (CFP) ???

Post by 123 » Mon Sep 25, 2017 9:46 pm

If they are really a "CFP" it means they've passed some exams and met some requirements. https://www.cfp.net/

You have to make your own decision about whether they are suitable to provide advice for your needs.
The closest helping hand is at the end of your own arm.

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FrugalInvestor
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Re: Certified Financial Planner (CFP) ???

Post by FrugalInvestor » Mon Sep 25, 2017 9:46 pm

You may want to take a look here.....
https://www.cfp.net/become-a-cfp-profes ... quirements

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Sandtrap
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Re: Certified Financial Planner (CFP) ???

Post by Sandtrap » Mon Sep 25, 2017 9:57 pm

CFP vs Bogleheads?
Books vs Real Life Experience and Success?
YMMV.
Interesting to ponder the comparison.
Shared experiences to benefit all -- not an exspurt -- per forum guidelines :) Golf score allocation 50/50 swings vs putts.

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Alexa9
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Re: Certified Financial Planner (CFP) ???

Post by Alexa9 » Mon Sep 25, 2017 9:59 pm

It's about as respectable as a financial advisor can be. They're certainly more of a fiduciary than your friendly Edward Jones guy.

123
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Re: Certified Financial Planner (CFP) ???

Post by 123 » Mon Sep 25, 2017 9:59 pm

Sandtrap wrote:
Mon Sep 25, 2017 9:57 pm
CFP vs Bogleheads?
...
Fee (may not be clearly apparent) vs Free
The closest helping hand is at the end of your own arm.

aristotelian
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Re: Certified Financial Planner (CFP) ???

Post by aristotelian » Mon Sep 25, 2017 10:13 pm

123 wrote:
Mon Sep 25, 2017 9:46 pm
If they are really a "CFP" it means they've passed some exams and met some requirements. https://www.cfp.net/

You have to make your own decision about whether they are suitable to provide advice for your needs.
They also have a license from a regulatory authority and three years experience in the industry.

helloeveryone
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Re: Certified Financial Planner (CFP) ???

Post by helloeveryone » Mon Sep 25, 2017 11:45 pm

Grinder12000 wrote:
Mon Sep 25, 2017 9:38 pm
If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?
My one experience with a CFP (who also has a AEP, CLU, and ChFP behind his name) was a bad one. Very smart, communicated well, had an expensive office in expensive part of town, and said his services were free until I reached a certain wealth level. I managed to let him convince me to switch to NWM for a disability policy. Once it finalized read it in detail and found that it appeared "cheaper for the same level of coverage" because the payments didnt balloon until a few years later. I managed to cancel within the time period the contract had for a full refund of the first two payments I made. It was a complete waste of about five hours of my life but a valuable lesson in life. I now get to read free advice from the folks who post here and pick and choose what pearls of wisdoms come up here. When I get to within 5-8 years of retirement if I feel I need more advice than what I can find here I will find a CFP and pay an hourly rate for their advice.

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FIREchief
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Re: Certified Financial Planner (CFP) ???

Post by FIREchief » Tue Sep 26, 2017 2:25 am

It probably means that they know more about investing than the average person and that they're smart enough and hard working enough to learn some things and pass a test. Does it mean that they will help you wind up with more money?? That's the question. (I have my own opinion of the answer but I really haven't ever dealt with one so I'll keep it to myself)
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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nedsaid
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Re: Certified Financial Planner (CFP) ???

Post by nedsaid » Tue Sep 26, 2017 6:45 am

helloeveryone wrote:
Mon Sep 25, 2017 11:45 pm
Grinder12000 wrote:
Mon Sep 25, 2017 9:38 pm
If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?
My one experience with a CFP (who also has a AEP, CLU, and ChFP behind his name) was a bad one. Very smart, communicated well, had an expensive office in expensive part of town, and said his services were free until I reached a certain wealth level. I managed to let him convince me to switch to NWM for a disability policy. Once it finalized read it in detail and found that it appeared "cheaper for the same level of coverage" because the payments didnt balloon until a few years later. I managed to cancel within the time period the contract had for a full refund of the first two payments I made. It was a complete waste of about five hours of my life but a valuable lesson in life. I now get to read free advice from the folks who post here and pick and choose what pearls of wisdoms come up here. When I get to within 5-8 years of retirement if I feel I need more advice than what I can find here I will find a CFP and pay an hourly rate for their advice.
CLU should have been your first clue. He was an insurance agent.
A fool and his money are good for business.

MrKnight
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Re: Certified Financial Planner (CFP) ???

Post by MrKnight » Tue Sep 26, 2017 7:10 am

Probably better than someone without. At least shows a commitment to learning.

aristotelian
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Re: Certified Financial Planner (CFP) ???

Post by aristotelian » Tue Sep 26, 2017 7:53 am

aristotelian wrote:
Mon Sep 25, 2017 10:13 pm

They also have a license from a regulatory authority and three years experience in the industry.
And I should add that experience in the industry could be a good thing or a bad thing, depending on your point of view and the integrity of the person.

Grinder12000
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Re: Certified Financial Planner (CFP) ???

Post by Grinder12000 » Tue Sep 26, 2017 9:07 am

Sandtrap wrote:
Mon Sep 25, 2017 9:57 pm
CFP vs Bogleheads?
Books vs Real Life Experience and Success?
YMMV.
Interesting to ponder the comparison.
Books vs. strangers on the internet? :-)

dbr
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Re: Certified Financial Planner (CFP) ???

Post by dbr » Tue Sep 26, 2017 9:14 am

It means something but what it means is not an endorsement one way or the other that you should do business with that person.

The real question is what service are you looking for?

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Re: Certified Financial Planner (CFP) ???

Post by pkcrafter » Tue Sep 26, 2017 9:44 am

Grinder12000 wrote:
Mon Sep 25, 2017 9:38 pm
If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?
CFP is a valid certificate. CFPs can provide a comprehensive long term financial plan. As for putting assets under management, not really needed.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

amateurnovice
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Re: Certified Financial Planner (CFP) ???

Post by amateurnovice » Tue Sep 26, 2017 6:37 pm

A CFP is just another certification that lets someone offer investment advice, same as a Series 65. Allows them to open their own registered investment adviser and/or be an investment adviser representative of an RIA and a) offer financial planning advice or b) offer asset management. Some are good at their jobs, others are just decent. Most people don't need one unless they have no idea how to manage money or how to set up their IRA to kick out automatic distributions. Some have an RIA but actually send their assets to a larger RIA that has their own proprietary funds, like Matson Money. You probably want to be careful if you're having to ask what a CFP is.

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unclescrooge
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Re: Certified Financial Planner (CFP) ???

Post by unclescrooge » Tue Sep 26, 2017 9:50 pm

helloeveryone wrote:
Mon Sep 25, 2017 11:45 pm
Grinder12000 wrote:
Mon Sep 25, 2017 9:38 pm
If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?
My one experience with a CFP (who also has a AEP, CLU, and ChFP behind his name) was a bad one. Very smart, communicated well, had an expensive office in expensive part of town, and said his services were free until I reached a certain wealth level. I managed to let him convince me to switch to NWM for a disability policy. Once it finalized read it in detail and found that it appeared "cheaper for the same level of coverage" because the payments didnt balloon until a few years later. I managed to cancel within the time period the contract had for a full refund of the first two payments I made. It was a complete waste of about five hours of my life but a valuable lesson in life. I now get to read free advice from the folks who post here and pick and choose what pearls of wisdoms come up here. When I get to within 5-8 years of retirement if I feel I need more advice than what I can find here I will find a CFP and pay an hourly rate for their advice.
One thing we all learn in life is that nothing is free. "Free" advice can be especially expensive!

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rkuklinski
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Re: Certified Financial Planner (CFP) ???

Post by rkuklinski » Wed Sep 27, 2017 8:39 pm

I invite those interested in viewing this link on the CFP Board's website regarding proposed changes to the Code of Ethics:

https://www.cfp.net/about-cfp-board/proposed-standards

Click on the link "Read the Comments Submitted to the CFP Board." on the page to read the responses of the CFP Board's efforts to require certificants to put the client's interests first at all times.

In the past certificants had some "wiggle" room on whether we were engaging in the financial planning process and thus needed to act as a fiduciary.
'Who controls the past' ran the Party slogan, 'controls the future: who controls the present controls the past.'"

alex_686
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Re: Certified Financial Planner (CFP) ???

Post by alex_686 » Wed Sep 27, 2017 8:59 pm

amateurnovice wrote:
Tue Sep 26, 2017 6:37 pm
A CFP is just another certification that lets someone offer investment advice, same as a Series 65.
No. The Series 65 is offered by FINRA and is a regulatory requirement to offer certain services to the public.

Nothing requires you to get a CFP. It is more akin to a MBA. It is a stamp of certain level of professional knowledge and ethics. One can certainly find that same level is a adviser who does not have a CFP.

dbr
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Re: Certified Financial Planner (CFP) ???

Post by dbr » Thu Sep 28, 2017 7:21 am

alex_686 wrote:
Wed Sep 27, 2017 8:59 pm
amateurnovice wrote:
Tue Sep 26, 2017 6:37 pm
A CFP is just another certification that lets someone offer investment advice, same as a Series 65.
No. The Series 65 is offered by FINRA and is a regulatory requirement to offer certain services to the public.

Nothing requires you to get a CFP. It is more akin to a MBA. It is a stamp of certain level of professional knowledge and ethics. One can certainly find that same level is a adviser who does not have a CFP.
I don't believe ethics can be established by certificate. In addition many of the ethical failings I and perhaps you or others would find with the financial services industry are regarded by many in power as unobjectionable business as usual.

amateurnovice
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Re: Certified Financial Planner (CFP) ???

Post by amateurnovice » Thu Sep 28, 2017 1:46 pm

dbr wrote:
Thu Sep 28, 2017 7:21 am
alex_686 wrote:
Wed Sep 27, 2017 8:59 pm
amateurnovice wrote:
Tue Sep 26, 2017 6:37 pm
A CFP is just another certification that lets someone offer investment advice, same as a Series 65.
No. The Series 65 is offered by FINRA and is a regulatory requirement to offer certain services to the public.

Nothing requires you to get a CFP. It is more akin to a MBA. It is a stamp of certain level of professional knowledge and ethics. One can certainly find that same level is a adviser who does not have a CFP.
I don't believe ethics can be established by certificate. In addition many of the ethical failings I and perhaps you or others would find with the financial services industry are regarded by many in power as unobjectionable business as usual.
Series 65 isn't a FINRA exam. It's a state law exam that allows someone to register an RIA/IAR and offer investment advice.

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Re: Certified Financial Planner (CFP) ???

Post by Meg77 » Thu Sep 28, 2017 2:04 pm

dbr wrote:
Thu Sep 28, 2017 7:21 am
alex_686 wrote:
Wed Sep 27, 2017 8:59 pm
amateurnovice wrote:
Tue Sep 26, 2017 6:37 pm
A CFP is just another certification that lets someone offer investment advice, same as a Series 65.
No. The Series 65 is offered by FINRA and is a regulatory requirement to offer certain services to the public.

Nothing requires you to get a CFP. It is more akin to a MBA. It is a stamp of certain level of professional knowledge and ethics. One can certainly find that same level is a adviser who does not have a CFP.
I don't believe ethics can be established by certificate. In addition many of the ethical failings I and perhaps you or others would find with the financial services industry are regarded by many in power as unobjectionable business as usual.
Ethics can't be guaranteed of course, but to hold the CFP(R) Designation you do have to pledge to act as a fiduciary in all matters at all times, and certain compensation models and conflicts of interest are not allowed. Also you can't get or can lose the use of the marks if you are found guilty of certain felonies, have had other professional licenses suspended, have 2 or more business or personal bankruptcies, or are found to be in violation of the Code of Ethics, Practice Standards, or Rules of Conduct.

So it IS a higher standard than a Registered Investment Advisor or licensed stockbroker or random person putting up a shingle and calling themselves a "financial advisor" is held to. But of course there are always bad apples and not every CFP is a great advisor. And there are also those without the CFP Designation who hold themselves to just as high a standard.
"An investment in knowledge pays the best interest." - Benjamin Franklin

alex_686
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Re: Certified Financial Planner (CFP) ???

Post by alex_686 » Thu Sep 28, 2017 2:09 pm

amateurnovice wrote:
Thu Sep 28, 2017 1:46 pm
Series 65 isn't a FINRA exam. It's a state law exam that allows someone to register an RIA/IAR and offer investment advice.
I don't think that is exactly on point. According to FINRA it is a FINRA exam. Also, are you confusing the Series 65 "Uniform Registered Investment Adviser Law Exam" with the Series 63 "Uniform Securities Agent State Law Exam"?

http://www.finra.org/industry/series65

Regardless, I can't think of any situation where a CFP is required. Could point me to an example? It has been almost 20 years since I have had to deal with the stuff directly so I am a little rusty.

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Re: Certified Financial Planner (CFP) ???

Post by Grt2bOutdoors » Thu Sep 28, 2017 2:12 pm

My father gave this piece of advice: in life there is no free, there is a cost for everything. The cost does not need to be monetary in nature, it could be of your time, health, etc. Wiser words have never been spoken.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: Certified Financial Planner (CFP) ???

Post by Mel Lindauer » Thu Sep 28, 2017 4:29 pm

nedsaid wrote:
Tue Sep 26, 2017 6:45 am
helloeveryone wrote:
Mon Sep 25, 2017 11:45 pm
Grinder12000 wrote:
Mon Sep 25, 2017 9:38 pm
If someone is a "Certified Financial Planner" does that actually mean anything?

No really, I don't know. I mean an manhole cover can be named an "Entrance Protector for a Subterranean Passageway" so is a Certified Financial Planner a real thing?
My one experience with a CFP (who also has a AEP, CLU, and ChFP behind his name) was a bad one. Very smart, communicated well, had an expensive office in expensive part of town, and said his services were free until I reached a certain wealth level. I managed to let him convince me to switch to NWM for a disability policy. Once it finalized read it in detail and found that it appeared "cheaper for the same level of coverage" because the payments didnt balloon until a few years later. I managed to cancel within the time period the contract had for a full refund of the first two payments I made. It was a complete waste of about five hours of my life but a valuable lesson in life. I now get to read free advice from the folks who post here and pick and choose what pearls of wisdoms come up here. When I get to within 5-8 years of retirement if I feel I need more advice than what I can find here I will find a CFP and pay an hourly rate for their advice.
CLU should have been your first clue. He was an insurance agent.
^^^You beat me to it. My sentiments, exactly. The CLU was a dead giveaway and he almost got you with that first sale. Fortunately you escaped in time.
Best Regards - Mel | | Semper Fi

kennethdl
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Re: Certified Financial Planner (CFP) ???

Post by kennethdl » Thu Sep 28, 2017 7:25 pm

I know that a Certified Financial Planner has to go through a ton of study and training. And I've heard the exam is tougher than a Law exam. That makes them knowledgeable but it doesn't necessarily make them good at it unless they have the common sense to go along with the certification.

amateurnovice
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Re: Certified Financial Planner (CFP) ???

Post by amateurnovice » Thu Oct 05, 2017 10:39 am

alex_686 wrote:
Thu Sep 28, 2017 2:09 pm
amateurnovice wrote:
Thu Sep 28, 2017 1:46 pm
Series 65 isn't a FINRA exam. It's a state law exam that allows someone to register an RIA/IAR and offer investment advice.
I don't think that is exactly on point. According to FINRA it is a FINRA exam. Also, are you confusing the Series 65 "Uniform Registered Investment Adviser Law Exam" with the Series 63 "Uniform Securities Agent State Law Exam"?

http://www.finra.org/industry/series65

Regardless, I can't think of any situation where a CFP is required. Could point me to an example? It has been almost 20 years since I have had to deal with the stuff directly so I am a little rusty.
It's not a FINRA exam in the sense that the exam is for firms registered under FINRA only. State registered investment advisory firms or SEC registered firms (RIAs) are not typically registered with FINRA unless they have a brokerage/custodian arm of the firm. The test may have been created or licensed by FINRA but the registrants, once they pass the exam, don't have to be registered with a FINRA brokerage. It's a mix of law and investment advice test; the 63 is a mix of law and securities brokerage test. The 66 is a mix of the 63 and 65. The CFP allows one to register in the same capacity as someone with a 7/66 or 65 and maybe 7/63, I'm not sure on the last one. It's just a certification that lets someone offer investment advice or maybe effect transactions in securities accounts; it's not something anyone that offers investment advice has to have. It's just one way of doing something that can be done another way.

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