Confidence comes through cognizance.
Now, everyone has heard the term ‘Financial Advisor’ before. However, did you know that not all terms mean what you think they mean.
Literally anyone can be a Financial Advisor. According to Investopedia,
“Financial advisor” is a generic term with no precise industry definition… What may pass as a financial advisor in some instances may be a product salesperson, such as a stockbroker or a life insurance agent. A true financial advisor should be a well-educated, credentialed, experienced, financial professional who works on behalf of his clients as opposed to serving the interests of a financial institution.
“Go to college;” I’m now a Financial Advisor by the legal definition. “Spend all your tax refunds on Pringles and Custom Baby-Seal Leather Boots;” I’m now a Financial Advisor. “Put that million dollars you inherited into this annuity;” I’m now a Financial Advisor and, depending on the company I work for, possibly $30,000 richer (assuming a 3% commission, some can be as high as 10%!).
Click on this link and print your own certificate of being a certified Financial Advisor from Last Week Tonight’s Financial Advisor Academy signed by John Oliver, the Dean of Financery! That’s how easy it is to say you’re a Financial Advisor.
The reason I want to be a Certified Financial Planner Designee is so that those served will be confident and secure the advice they are given is for their best interest. A CFP designation requires a LOT of work. Here are some of the many requirements
- A Bachelor’s degree
- Mastery of 100 topics of financial planning
- Classes and credit hours in these areas:
- Insurance Planning
- Employee Benefits Planning
- Investment and Securities Planning
- State and Federal Income Tax Planning
- Estate Planning
- Retirement Planning
- Asset Protection Planning
- Estate Tax, Gift Tax, and Transfer Tax Planning
- Financial Counselling
- Capstone Course
- Passing a 6 hour test with 170 questions about the application of the 100 areas including:
- Two case studies
- Mini-case problem sets
- Stand-alone questions
- This test has about a 42% pass rate
- 3 years of work experience in all areas
- Establishing and Defining Relationships
- Gather Client Data and Goals
- Analysing and Evaluating Financial Status
- Developing and Presenting Financial Planning Recommendations and Alternatives (yeah. you can’t give one idea, but a cluster of them)
- Implementing the choice
- Monitoring the Financial Plan
Oh. And there are is more. There are ongoing requirements to be a CFP Designee.
There is a strict code of ethics involving criminal background checks and compliance to track everything you do. Every two year period requires thirty hours of ongoing continuing education.
Also, you CAN’T have a CFP Certification if you’ve had any of these.
- Felony conviction for theft, embezzlement or any other financial crime
- Felony for tax fraud
- Revocation of any professional license previously (with exceptions)
- Felony conviction for any degree of murder or rape
- Felony for a violent crime in the last 5 years.
- Two or more bankruptcies (with exceptions)
So, except for a violent crime lasting 5 years on your record, anything else is a permanent block from ever being a CFP Designee.
Who would you rather work with on creating your financial action plan?
Do you understand why it’s worth looking for a CFP with all of that under their belt, compared to just a “Financial Advisor” (I hope you printed that URL off, because if so, you’re an Advisor now, too!)
My interest in studying financial planning by becoming a CFP Designee is to help individuals feel aware, secure, and prepared for retirement. The peace that comes from knowing you are acting and achieving your own goals financially is powerful and strong that builds real confidence to act. I’m also motivated to become a CFP Designee because it is something that is universal and needed for everyone; this field is a way to help all individuals and therefore families too, no exceptions. A CFP designation gives strong support to show I can do comprehensive planning, and have dedication to providing value and accuracy. Attendance at finance conferences, Financial Planning Association meetings, and volunteer work through my school’s student financial counselling centre, the Money Management Resource Centre, are all ways I’m becoming as knowledgeable I can for the benefit of those I will work for. Individuals need help on a vision, and then they can make the wise decision.
I want to help millennial entrepreneurs, newlyweds, dance teachers, college students, and the active high paced people of today to understand how their money works and how to keep their wealth from slipping through their fingers. People are scared of money, or worried about money. If they are cognizant then they can be confident. My goal is to become a reliable counsellor; I will be a planner to help others make educated choices to feel confident and prepared to reach their vision: bear hunting in Europe, having a large family, creating a company from scratch, or planning 40 years in advance for retirement.
– Jacob Johnson is a student of Personal Financial Planning at Utah Valley University, He is a member of the student Financial Planning Association there and enjoys competitive ballroom dance.
– Thank you Rebekah White for the wonderful craftsmanship and help in editing and reviewing my writing. Thank you for helping me to be confident. Rebekah has a degree in Creative Writing and helps authors and individuals express their thoughts in more effective and clear methods using their own natural voice. * If you’d like contact to her please let me know!