Research conducted by Morning Consult found that only 1 in 4 Americans feel financially prepared for retirement. Almost 50% of survey respondents noted they are not currently saving for retirement even though they view it as essential. The words overwhelming and complicated were often used when individuals thought about financial planning for the future. While those statistics appear bleak, it is positive to note that over half of individuals not currently working with a financial planner stated it would be in their best interest to consult with a professional. Many Americans do not have the knowledge to properly plan for their future and due to this lack of ability, the financial planning industry is on the rise.
Individuals and families need to be assured there are competent and capable professionals to assist them not only with retirement, but other complex financial decisions. At the Belmont University Center for Executive Education, we are often asked why professionals within the industry should work toward the CFP® designation and how it can differentiate them from competitors. Listed below are three of the top reasons we at the CEE think it is worth the time and effort.
Per the CFP® Board, 86% of consumers prefer an advisor who has passed a certification exam and completed a rigorous education program. 90% of CFP® professionals believe that the designation gives them more credibility in the eyes of their clients. The CFP® designation allows current and prospective clients to be confident in your abilities as a financial planning professional knowing that you have:
- Met a consistent and rigorous education requirement
- Passed a comprehensive financial planning exam
- Have documented experience within the industry
- Agreed to high ethical and professional standards
The certification showcases that you have the experience and knowledge to successfully support your clients in reaching their financial goals.
2. Build Trust with your Clients
Clients can build trust quickly with CFP® professionals because individuals with this designation are required to follow a strict code of ethics and standards of conduct. A CFP® professional must:
- Act with honesty, integrity, competence and diligence
- Act in the client’s best interests
- Maintain the confidentiality and protect the privacy of client information
CFP® professionals who do not follow the standards of conduct and code of ethics are subject to discipline and could lose the designation. When working with a CFP® planner, clients know their needs are guaranteed to be put first and are made aware of any conflict of interests.
3. Lifelong Learning
Receiving the CFP® designation sets you up for lifelong learning and awareness of new trends within your industry. CFP® professionals are required to complete 30 hours of continuing education each reporting period covering CFP Board approved topics/sessions. CFP® professionals can be confident knowing that the CFP Board approved topics are meaningful and will help them develop necessary skills to succeed.
Are you interested in learning more about how to become a Certified Financial Planner? The Center for Executive Education offers an approved education course that can assist you in completing your education requirement to sit for the CFP® certification exam. Click HERE to request more information.
ABOUT THE BELMONT CENTER FOR EXECUTIVE EDUCATION: The Center engages learners in a way that makes a significant difference in their development, behaviors and results. We develop effective leaders and employees in order to improve the results of our client organizations and the career success, satisfaction and significance of the individuals we serve.
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