Certifications: How important are they?
It’s a tricky question. When choosing a financial advisor, the primary consideration should be
finding someone you like and trust. However, certifications can serve as a shortcut to trust in a
world of vast information. They help us quickly identify who we can rely on for extensive
knowledge or services.
What does a Certified Financial Planner do?
One designation you’ll often see tacked on to an advisor’s name is CFP®, which stands for
Certified Financial Planner. This indicates they’ve gone the extra mile to become well versed in
comprehensive financial planning, putting in years of study and thousands of hours of
experience. Research suggests that 90% of consumers feel more confident working with an
advisor with a financial planning designation. And 87% of clients feel satisfied working with a
CFP®, compared to 72% with a non-certified advisor.1
These numbers are persuasive. However, what matters is knowing how working with a CFP®
benefits you.
Six reasons why working with a CFP® can be beneficial:
1. They have extensive knowledge. CFP®s have studied for and passed a challenging exam
covering all aspects of financial planning, from investments and taxes to retirement and estate
planning. This qualifies them to help you with your entire financial picture—not just one aspect.
2. They have considerable experience. CFP®s must have several years of real-world
experience before they’re allowed to use the designation. Because of this, you’re more likely to
work with someone with a broader range of knowledge.
3. They’re held to high ethical standards. CFP®s are obligated to put your interests first.
They act as fiduciaries, meaning they must recommend what's best for you, not what's most
profitable for them.
4. They stay up-to-date on industry changes. CFP®s must take ongoing courses to keep
their certification. This ensures they stay current on the latest financial strategies or regulations
that may benefit you.
5. They look at things holistically. A CFP® will focus on your entire financial picture rather
than one area only, such as your investment portfolio. They’ll provide comprehensive guidance
on all aspects of your financial life.
6. They have credibility. The CFP® designation is widely recognized and respected in the
financial industry. It's a designation that inspires trust because it indicates that your advisor has
met high standards of competence and ethics.
Should you work with a Certified Financial Professional?
While certifications like CFP® are valuable, they're just one piece of the puzzle when choosing
a financial advisor. The key is to find someone with the proper credentials who’s also in sync
with your values, communication style, and financial goals. However, searching for the CFP®
designation can be an excellent place to start. It signals that you’ll be working with someone
who has expertise, integrity, and a comprehensive approach to financial planning.
1 https://www.cfp.net/why-cfp-certification/why-get-certified
Securities and investment advisory services offered through Hornor, Townsend & Kent, LLC. Registered Investment Adviser.
Member FINRA/SIPC. 600 Dresher Road, Horsham PA 19044. 800-873-7637, www.htk.com. HTK is a wholly-owned subsidiary of
The Penn Mutual Life Insurance Company. Bridger Financial Group, CSC Financial Strategies, Rossetti Financial, Inc. and listed
entities are independent of HTK. HTK does not provide tax or legal advice. Always consult a qualified tax advisor regarding your
personal tax situation and a qualified legal professional for your personal estate planning situation. 7269785RG_Nov26