Career as Financial Planner

What Does A Financial Planner Do?

Personal financial planners help individuals determine whether and how they can meet their life goals through the proper management of financial resources. To do this, they help clients analyze where they are financially, where they want to go and how they get there.

Not all individuals who earn the CFP® certification choose to practice personal financial planning. However, those CFP® certificants who do practice are trained to take a comprehensive approach to financial planning. They are trained to analyze and provide advice on all areas of a person's life:

  Income Tax Management
  Employee Benefits
  Retirement Planning
  Estate Planning
  Investment Management
  Insurance

In most cases, planners' analyses and recommendations are provided to clients in the form of a written financial plan. The planner may then coordinate the implementation of the plan and periodically review it to account for changes in the client's life and current economic conditions. This broad-based approach distinguishes financial planners from insurance agents, stockbrokers, accountants or attorneys, who may focus on only one area of a person's finances.

How Will The CFP® Certification Benefit Me As A Financial Planner?

The CFP® certification was introduced in 1972 and has become the most widely recognized financial planning certification among consumers. This recognition, in turn, gives CFP® practitioners added credibility. In addition, the CFP® certification process requires candidates to acquire a broad-based education, which not only builds the competency of the planner, but also increases the client's confidence in the planners abilities. The fact that CFP® certificants voluntarily agree to adhere to a high standard of conduct and must submit to a disciplinary review process should they violate this standard also provides clients with the reassurance they need when selecting a financial planner.

Is Financial Planning A Growing Field?

Yes. The growth in demand for the CFP® certification attests to the fact that this is a valuable, much needed service profession. As life spans increase due to improved health care and as the post-war "baby boomers" advance toward retirement, many individuals will seek the professional assistance in managing scarce financial resources. According to the Department of Labor, employment in the field is expected to grow faster than average, 30-40 percent through 2018.

Where Would I Work As A Financial Planner?

CFP® practitioners often choose to establish a private practice, either by themselves or in conjunction with other planners. Some planners work for banks, credit unions, insurance companies, accounting or law firms, credit counseling organizations and brokerage firms. In addition, they might hold positions in the employee benefits or pensions departments of large corporations. Or, they may choose a career in academia teaching personal financial planning to other interested students.
 

The Impact of Financial Planners of Baby Boomers Nearing Retirement.

There are important demographic shifts affecting baby boomers and retirement.

Individuals in 13.8 million households are expected to retire over the next 10 years.

Those households have $4.4 trillion in assets, or about a quarter of all financial assets in the country.

These assets represent an important market for financial planners.

There is much confusion about retirement finances among many working people.

The following factors must be considered in making the right retirement and investment decisions:
Increase health care costs
Longer life expectancies
The uncertainty of financial markets

Relatively few baby boomers have company pensions to supplement savings and Social Security income.

That means a bigger role for their 401(k) investments.

Choices in drawing down those accounts become more important.

“Fairleigh Dickinson University does not certify individuals to use the CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP with flame logo. CFP® certification is granted solely by Certified Financial Planner Board of Standards Inc. to individuals who, in addition t completing an education requirement such as this CFP Board – Registered Program, have met ethics, experience and examination requirements.”