5. What is a CFP and do you need one ?

CFP vs. CFA: What Do They Do?

CFPs aren’t the only financial professionals who can help you with your money. Another professional designation is the Chartered Financial Analyst® (CFA).

For the most part, the CFP vs. CFA distinction is about who the professional works with.

  • CFPs generally work with individuals and families and are trained to help you create roadmaps to meet your money goals.
  • CFAs often focus on investing and analysis for institutions.

However, this doesn’t mean that CFAs never work with individuals. Some CFAs have advisory practices that help individuals meet their goals. If you’re looking for someone to manage your investment portfolio as well as make recommendations for how to build your investing account, a CFA could be a good choice.

A CFP likely won’t manage your assets for you. Instead, they’ll make recommendations and may help you purchase certain financial products, but they don’t always actively manage your portfolio for you (although some CFPs might). In the end, the type of professional you choose is more about what you need from your planner or advisor.

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