Introduction
Financial advisors are professionals who provide guidance and advice on a range of topics, such as investments, taxes, retirement planning, estate planning, budgeting, and insurance. One of the most sought-after credentials in this field is the Certified Financial Planner (CFP). The CFP designation is a rigorous program that requires extensive education, experience, and adherence to a code of ethics.
In this article, we will explore what percentage of financial advisors are CFPs and the impact that CFPs have on the financial advisory field. We will also look at the benefits of becoming a CFP professional, as well as the advantages of hiring a CFP for financial advice and planning.
How Many Financial Advisors are CFP Professionals?
According to the Certified Financial Planner Board of Standards, there are more than 80,000 CFP professionals in the United States. This number has been steadily increasing since the first CFP certification was granted in 1973.
The CFP Board’s 2018 Trends Study found that CFP professionals make up only 18 percent of all financial advisors in the United States. This means that the majority of financial advisors do not hold the CFP designation.
There are several reasons why the number of CFP professionals is relatively low compared to other financial advisors. For starters, the CFP certification process is very demanding and requires a significant time commitment. To become a CFP professional, candidates must complete an approved college-level coursework program, pass a comprehensive exam, and have three years of full-time financial planning experience.
Furthermore, the cost of obtaining the CFP certification can be prohibitively expensive for some individuals. The CFP Board charges a $725 application fee and a $325 annual renewal fee. Additionally, many CFP courses and study materials can cost thousands of dollars.
The Benefits of Becoming a Certified Financial Planner
Despite the cost and effort involved in becoming a CFP professional, the benefits are numerous. CFPs have access to a wide range of professional networking opportunities, including conferences, workshops, seminars, and online forums. This allows them to build relationships with other financial advisors and stay abreast of the latest industry trends and developments.
Additionally, CFPs enjoy greater job security and earning potential. According to the Bureau of Labor Statistics, the median salary for financial advisors was $87,850 in 2018, while CFP professionals earned a median salary of $106,050. Furthermore, CFPs are eligible for higher salaries due to their specialized knowledge and expertise.
Examining the Advantages of Hiring a CFP Professional
When looking for financial advice and planning services, it is important to consider the benefits of hiring a CFP professional. CFPs have extensive knowledge and experience in financial planning and investment strategies. They can provide reliable advice and help you create a plan that meets your specific needs and goals.
Moreover, CFPs are held to a higher standard of care by the CFP Board. All CFP professionals must adhere to strict ethical guidelines and comply with state and federal regulations. This ensures that clients receive trustworthy and unbiased advice from experienced financial advisors.
Exploring the Impact of CFPs on the Financial Advisory Field
The presence of CFPs in the financial advisory field has had a positive effect on the industry as a whole. CFPs have helped expand the services offered by financial advisors, such as retirement planning, tax planning, and estate planning.
Furthermore, CFPs have improved the standards of care and compliance in the financial advisory field. By adhering to the CFP Board’s Code of Ethics and Standards of Professional Conduct, CFPs ensure that clients receive competent, honest, and objective advice.
Conclusion
In conclusion, CFPs are a valuable asset to the financial advisory field. Although they make up a small percentage of financial advisors, the impact of CFPs is undeniable. CFPs offer expertise in financial planning and investment strategies, as well as trustworthy advice from experienced financial advisors.
For those considering a career in financial advising, the CFP designation is an excellent choice. The process may be difficult and costly, but the rewards are worth it. For those seeking financial advice, it is important to seek out a qualified CFP professional to ensure that you receive the best possible advice and guidance.
(Note: Is this article not meeting your expectations? Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)