CFP vs. Other Advisors


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Brief overview of how CFP\'s are different from other advisors

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CFP vs. Other Advisors

  1. 1. Page 1 of 2 Ameriprise Financial Chris Winn, CFP® 1500 NW Bethany Blvd #280 Beaverton, OR 97006 503-439-1880 What Is a CERTIFIED FINANCIAL PLANNER™ Professional? A CERTIFIED FINANCIAL How is a CFP® professional compensated? PLANNER™ professional or a CFP® practitioner is a financial Typically, financial planners earn their living either from com- professional who meets the missions or by charging hourly or flat rates for their services. A requirements established by CFP® professional may use a combination fee-and- the Certified Financial Planner commission structure: you pay a fee for development of a fi- Board of Standards, Inc. While nancial plan or for other services provided by the CFP® profes- others may call themselves sional, who also receives a commission from selling you prod- financial planners, only those who demonstrate the requisite ucts. A commission is a fee paid whenever someone buys or experience, education, and ethical standards are awarded the sells a stock or other investment, or when someone buys in- CFP® mark. surance (such as health, life, or long-term care insurance) or annuities. What are the requirements? When calculating the cost to employ the services of a financial ® In order to obtain the CFP mark, an applicant must: planner, consider fees, commissions, and related expenses, such as transaction fees and management fees related to the • Hold a bachelor's degree from an products he or she recommends. accredited college or university While others may How can a CFP® professional help you? ® • Complete a CFP call themselves A CFP® professional can help you create a personal budget, Board-registered education financial planners, control expenses, and develop and implement plans for retire- program only those who ment, education, and/or wealth protection. A CFP® profes- • Pass the 10-hour CFP® demonstrate the sional can offer expertise in risk management, including strate- certification exam requisite gies involving life and long-term care insurance, health insur- experience, • Have at least three years of ance, and liability coverage. He or she often can help with your education, and qualifying full-time work tax planning or manage your asset portfolio based on your ethical standards experience in financial planning goals. are awarded the • Pass a professional fitness CFP® mark. Specifically, a CFP® professional can help you: standards and background • Establish financial and personal goals and create a plan check to achieve them Once appointed, a CFP® professional must meet continuing • Evaluate your financial well-being with a thorough analy- education requirements every other year in order to maintain sis of your assets, liabilities, income, taxes, investments, the certification. and insurance • Identify areas of concern and help you address them by What does a CFP® professional do? developing and implementing a financial plan that A CFP® professional is trained to develop and implement com- emphasizes your financial strengths while reducing your prehensive financial plans for individuals, businesses, and financial weaknesses organizations. He or she has the knowledge and skills to ob- • Review your plan periodically to accommodate your jectively assess your current financial status, identify potential changing personal circumstances and financial goals problem areas, and recommend appropriate options. You're also working with someone who's demonstrated expertise in How to choose a CFP® professional multiple areas of financial planning, including income and es- tate tax, investment planning, risk management, and retire- Selecting a CFP® professional is like choosing a doctor for ment planning. your financial health. Working with a CFP® professional in- volves sharing very personal information and you will want to See disclaimer on final page July 23, 2009
  2. 2. Ameriprise Financial Page 2 of 2 feel comfortable with the professional you've chosen. He or broker-dealer? Who is it? she should be knowledgeable, have integrity, and demonstrate a commitment to the highest ethical standards in the industry. • Does your practice concentrate in a particular area? What Also, a CFP® professional may offer services to a particular types of clients do you work with? clientele, such as small business owners, corporate execu- • What type of products and services do you offer? Are you tives, or retirees, so be sure the planner you select works with limited as to the products and services you can offer me? people whose interests and goals are similar to yours. • How are you compensated for your services? Do you re- Before you choose A CFP® professional agrees to ceive a commission for products you may sell to me? someone to work with, adhere to a strict code of ask around. You may professional conduct • Have you ever been disciplined by any government board know a family member, described in the CFP Board's or regulatory agency? friend, or colleague who Code of Ethics and has worked with some- Professional Responsibility. Is a CFP® professional right for you? one they'd recommend. You can review the Code of The financial world has become a very complex place. Even if Also, be prepared to Ethics at you're used to handling your own financial affairs, the time interview the prospec- may be right to consult a CFP® professional who can review tive CFP® professional. At your meeting, request a copy of your financial health and offer suggestions that may help you form ADV or the comparable state form. A CFP® professional reach your financial goals. who offers investment advice for a fee is required to file form ADV with the U.S. Securities and Exchange Commission For example, are you familiar with all the different investment (SEC) or with the state of residence of the CFP® professional opportunities that might be available to you? Are you on track (although some exceptions apply). Form ADV contains infor- to meet your financial goals such as saving for your child's mation about the professional's education, business, discipli- college education, securing enough income for a comfortable nary history, services offered, fees charged, and investment retirement, or protecting your assets against risks and strategies. In addition to form ADV, ask for the disclosure lawsuits? A CFP® professional can offer the analysis you need document that contains other important information regarding to help answer these and other important financial questions. the CFP® professional. Even if you don't ask for the disclosure document, it must be provided to you at the time you enter into The following sites offer more information about an agreement for services, or soon thereafter. Read the disclo- CERTIFIED FINANCIAL PLANNER™ certificants: sure document carefully as well as any written agreements • The Certified Financial Planner Board of you enter into. Standards, Inc., ( • The Financial Industry Regulatory Authority, Questions to ask ( Here are some questions you may want to ask a CFP® profes- • The Securities and Exchange Commission, sional to help you find the right planner for you: ( • What is your education? What schools did you attend and what degrees have you earned? Note: Certified Financial Planner Board of Standards Inc. • What licenses do you hold? Are you registered with the owns the certification marks CFP® , CERTIFIED FINANCIAL SEC, FINRA, or the state? PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully • Are you affiliated with any professional groups or complete CFP Board’s initial and ongoing certification organizations? Do you execute securities trades through a requirements. Disclosure Information -- Important -- Please Review The information contained in this material is being provided for general education purposes and with the understanding that it is not intended to be used or interpreted as specific legal, tax or investment advice. It does not address or account for your individual investor circumstances. Investment decisions should always be made based on your specific financial needs and objectives, goals, time horizon and risk tolerance. The information contained in this communication, including attachments, may be provided to support the marketing of a particular product or service. You cannot rely on this to avoid tax penalties that may be imposed under the Internal Revenue Code. Consult your tax advisor or attorney regarding tax issues specific to your circumstances. Neither Ameriprise Financial Services, Inc. nor any of its employees or representatives are authorized to give legal or tax advice. You are encouraged to seek the guidance of your own personal legal or tax counsel. Ameriprise Financial Services, Inc. Member FINRA and SIPC. The information in this document is provided by a third party and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Ameriprise Financial Services, Inc. While the publisher has been diligent in attempting to provide accurate information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal interpretations. Accordingly, neither the publisher nor any of its licensees or their distributees shall be liable for any loss or damage caused, or alleged to have been caused, by the use or reliance upon this service. Prepared by Forefield Inc., Copyright 2009 July 23, 2009