If you do a “google search for a “financial advisor”, you’ll come across many who hold themselves out as financial advisors. Some will have a “CFP” listed behind their name. A Certified Financial Planner, is a highly credentialed and experienced fiduciary financial advisor. A Certified financial planner is a professional license awarded to financial advisors who have passed rigorous coursework and comprehensive examinations proving their fluency in all aspects of financial planning. CFP requirements currently include holding a bachelor’s degree or higher, completing a CFP Board approved education program, passing a series of comprehensive exams and having at least 6,000 hours of professional experience. They also must complete ongoing continuing education requirements after receiving their CFP license.
CFPs may specialize in different areas, like estate planning or tax planning, and some may have additional credentials, such as certified public accountant (CPA), law degrees or other credentials or licenses. Not all financial advisors have a fiduciary duty to put your interests ahead of their own. However, all CFPs are held to this strict standard. This means they are prohibited from selling a financial product just because they earn a high commission by selling it. The CFP Board of Standards states that a CFP licensee has a duty of loyalty, a duty of care and duty to follow client instructions, among other duties.