What a CFP® Professional Does and Why It Matters for Your Financial Future
Introduction: Why Listening to Me Can Make a Difference
When it comes to planning your financial future, the path can often feel unclear or overwhelming. You may have questions about retirement, managing investments, or even how to make your money work smarter—not harder—for you. This is exactly where a CERTIFIED FINANCIAL PLANNER™ professional, or CFP®, steps in.
But what makes CFP® professionals uniquely qualified? And more importantly, why should you consider working with one?
I’m Ben Loughery, CFP®, founder of Lock Wealth Management. Over the years, I’ve worked with individuals and families to create customized financial plans that provide clarity and confidence. In my experience, a strong financial plan doesn’t just secure your future—it also relieves stress in the present. In this article, I’ll share insights into what a CFP® does, why it matters, and how working with one can benefit your financial journey.
What You’ll Learn in This Article
- The unique value CFP® professionals bring to financial planning.
- Real-world examples of how a CFP® can help address financial challenges.
- The cost and benefits of hiring a CFP®.
- How CFP® professionals are different from other advisors.
Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video:
What Makes CFP® Professionals Stand Out?
A CFP® professional isn’t just another financial advisor. Here’s what sets us apart:
- Rigorous Training and Standards
CFP® professionals undergo extensive education in areas like tax planning, estate planning, retirement planning, and investments. Passing the CFP® exam is no small feat—it’s known as one of the most challenging certifications in the financial industry.
CFP Board - What Is CFP Certification
- Fiduciary Commitment
- A Holistic Approach
In my experience, clients don’t just need help with investments—they need a comprehensive strategy. A CFP® considers your entire financial picture, including taxes, insurance, and long-term goals.
What Does a CFP® Professional Actually Do?
1. Craft a Personalized Financial Plan
A financial plan isn’t just a document; it’s a roadmap to help you achieve your goals. Whether you’re saving for retirement, buying a home, or planning your legacy, a CFP® builds a plan tailored to you.
In My Experience: Many clients come to me feeling uncertain about their financial priorities. By organizing their goals into a step-by-step plan, they gain a sense of clarity and control.
Pros:
- Provides direction and actionable steps.
- Addresses specific needs and objectives.
Cons:
- Requires time and commitment to develop.
2. Maximize Your Investments
Investment management is a cornerstone of what CFP® professionals do, but it’s not just about picking stocks or funds. It’s about ensuring your portfolio aligns with your goals and risk tolerance.
Real-World Example: One of my clients was unknowingly paying high fees for an underperforming portfolio. After restructuring their investments, they not only reduced costs but saw stronger returns tailored to their retirement goals.
I Recommend: Regular portfolio reviews to ensure your investments are optimized for the current market and your evolving goals.
3. Navigate Tax Planning
Taxes are one of the most significant expenses you’ll face in life, but proactive planning can reduce the impact. A CFP® helps you develop strategies to minimize your tax burden now and in the future.
In My Experience: Clients often overlook tax strategies like Roth conversions or tax-loss harvesting. Implementing these techniques can lead to significant savings over time.
Pros:
- Keeps more money in your pocket.
- Reduces surprises at tax time.
4. Address Risks and Protect Assets
Life is unpredictable, but a CFP® ensures you’re prepared for the unexpected. This includes reviewing insurance policies, creating an estate plan, and protecting your wealth from market volatility.
Unique Insight: One of my clients realized their life insurance coverage was outdated, leaving their family at risk. A quick review and update provided peace of mind.
Pros:
- Protects against financial setbacks.
- Aligns insurance and estate plans with your goals.
5. Provide Ongoing Support
Your financial plan isn’t static—it evolves as your life changes. A CFP® provides ongoing guidance, helping you adapt to new challenges and opportunities.
In My Experience: Clients who schedule regular reviews are better prepared to adjust their plans as needed, whether due to market changes or life events like a new job or family addition.
Source: U.S. Chamber of Commerce - How Often to Update a Financial Plan
Why Should You Consider Working with a CFP®?
- The Cost of Working with a CFP®
CFP® professionals typically charge based on the complexity of your situation. Some advisors charge a flat fee, while others work on a percentage of assets managed.
- At Lock Wealth Management:
- Financial planning fees start at $2,500 and are based on your needs.
- Investment management fees are billed quarterly as a percentage of assets under management.
Source: NerdWallet - Financial Planner Costs
- Problems CFP® Professionals Solve
Clients often come to me with challenges like:
- Feeling overwhelmed by financial decisions.
- Uncertainty about whether they’re saving enough for retirement.
- Confusion over tax strategies or investment options.
By working together, we address these concerns and create a clear path forward.
What Makes a CFP® Different from Other Advisors?
Holistic Approach vs. Narrow Focus:
While some advisors focus solely on investments, a CFP® looks at the full picture, integrating tax planning, insurance, and estate planning.
Fiduciary Duty vs. Commission-Based Models:
Unlike some advisors who earn commissions on products, CFP® professionals prioritize your best interests, ensuring unbiased advice.
Conclusion
A CFP® professional isn’t just someone who manages your investments—they’re a partner in your financial journey. From crafting a personalized plan to providing ongoing support, we help you navigate life’s complexities with confidence.
Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video:
FAQs
- 1. Do I need a CFP® if I’m already investing?
- Yes. A CFP® ensures your investments align with broader goals like tax efficiency, retirement, and long-term financial security.
- 2. How often will we meet?
- At Lock Wealth Management, we meet formally twice a year and are available for questions or updates anytime.
- 3. Can a CFP® help me save for retirement?
- Absolutely. We develop tailored strategies to maximize your savings and create a sustainable retirement income plan.
Disclaimer: Case studies are hypothetical and do not relate to an actual client of Lock Wealth Management. Clients or potential clients should not interpret any part of the content as a guarantee of achieving similar results or satisfaction if they engage Lock Wealth Management for investment advisory services.