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

What Is a CFP?

A Certified Financial Planner™ (CFP®) is a professional who has gone through the effort of attaining a title through the Certified Financial Planner Board of Standards. This organization is a nonprofit and one of the leading voices in ensuring financial planners meet certain ethical and professional standards.

Becoming a CFP isn’t exactly easy. CFPs must:

  • Take classes and receive an education in certain financial topics
  • Pass a rigorous exam
  • Fulfill experience requirements

In addition to these basic criteria, CFPs must adhere to ethical standards. For one, a CFP must act in your best interest, since they are a fiduciary. In many cases, CFPs have a broad knowledge of how to apply financial concepts and planning to real-world experience. So, if you’re looking for someone who can help you with practical issues related to money, a CFP might fit your needs.

CFPs help you with “road map” planning so you can reach your financial goals. This includes:

  • Saving up to buy a home
  • Improving your credit
  • Saving for your child’s college
  • Building your retirement plan and meeting several objectives.
  • CFPs also help you with tax planning and some estate planning.

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