A Word from CFP Board's Consumer Advocate

With the aftershocks of the global financial crisis still clear in our memory, and with little guarantee that relief is in sight, there's no shortage of dismal news or cookie-cutter advice. American consumers are on an emotional rollercoaster – frightened and more susceptible than ever to inaccurate and misleading financial advice.

More than ever, it's important for all Americans to take an active role in planning for the future they want. Managing your financial resources is an important part of any plan. Unfortunately, thousands of Americans are making ill-informed financial decisions they may come to regret, thinking that doing anything is better than doing nothing. What people need right now is access to a professional financial planner whom they can trust to act in their best interest – someone who is qualified by education, experience, and held to enforceable ethical standards.

As CFP Board's Consumer Advocate and someone who has helped hundreds in similar situations, I am here to assure you you're not alone and to give you the critical steps you can take right now to deal with your current financial situations and secure a healthier financial future. The resources below will help you identify the financial planning assistance to meet your needs and help you locate a qualified and ethical financial planner whom you can build a trusted, long-term relationship. You don't have to go it alone!

Eleanor Blayney, CFP®
consumeradvocate@CFPBoard.org

Learn more about Eleanor >

From the State of the Union to the State of You

Approximately 50 million people will tune in to this year's State of the Union address. This annual review of the body politic, mandated by the Constitution, began with our nation's first president and has been emulated by leaders of smaller jurisdictions as well. Many governors deliver a yearly "State of the State" or "State of the Commonwealth" speech, while the similarly-intended version for mayors is aptly called "The State of the City." Clearly these reviews are important tools of governance and executive management at any level.

But what about households or even at the level of the individual? How many people do an annual analysis of where they stand and where they are going? Those working with a CFP® professional probably do. While the analysis is generally called a financial plan rather than a "State of Me," its purpose and benefits are very much the same as those of President Obama and his 43 predecessors.

The State of the Union will take President Obama an hour or more to deliver, but actually sets out an agenda that will take the entire year, if not longer, to execute. The same is true for comprehensive planning – it takes time, long-term monitoring and adjustment. To this end, CFP Board is launching a "12 for '12 Approach to Financial Confidence" to help consumers prepare their own executive annual assessment of where they are financially, where they would like to be in the future, and how they plan to get there. Read more >

Other Messages from Eleanor:

• The More Things Change, the More They Should Stay the Same
• The Course to Financial Success: A Marathon, Not a Sprint
• A Family Affair: Talking Turkey about Financial Planning
• Eight Great Ways to Build Confidence
• Getting Americans Back to Work: Whose Job is It?
• Back to School
• E Pluri-bust Unum
• Recession Redux: Another Apportunity To Get It Right
• Don't Let Rising Prices Wreck Your Vacation Plans
• Spring Cleaning
• Love & Money: Making Sure Your Valentine is a Good Financial Match
• Already Dumped Your Resolutions? It's Time for New Year "Re-Solutions"
• Re-Think Gift Giving: Five Strategies to Take the Stress (and Expense) Out of the Holidays
• Ladies, Start Your Engines: Time to Stop Playing it Safe in the Workplace
• Teach a Child, Reach the Nation: Why Financial Literacy Matters
• Notes from Detroit: Courage and Optimism from the Nation's Heartland
• Consumers Gain Confidence But Not Trust
• Credit CARD ACT of 2009 Could Spell trouble for Consumers
• Dad's Big Role in Teaching Financial Responsibility
• Self-Control is Better than Government Control

What You Should Know About Financial Planning

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track. Read more >

10 Questions to Ask When Choosing a Financial Planner

You want to select a competent, qualified financial planner with whom you feel comfortable, one whose business style suits your financial planning needs. A successful relationship with a financial planner starts with these 10 questions:

1. What experience do you have?
2. What are your qualifications?
3. What services do you offer?
4. What is your approach to financial planning?
5. Will you be the only person working with me?
6. How will I pay for your services?
7. How much do you typically charge?
8. Could anyone besides me benefit from your recommendations?
9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
10. Can I have it in writing?

Why You Should Choose a CFP® Practitioner

CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by Certified Financial Planner Board of Standards Inc. (CFP Board), and those marks can help you identify financial planners who are committed to competent and ethical behavior when providing financial planning. Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process that includes demanding education, examination, experience and ethical requirements. These standards are called "the four Es," and they are four important reasons why the financial planning practitioner you select should display the CFP® certification marks. Read more >

Your Rights as a Financial Planning Client

If you've decided to work with a financial planner, it's important to understand your rights in this professional relationship. A competent, ethical planner will seek to understand and meet your needs and will explain the reasons behind his or her decisions and actions. You can take an active role in shaping your financial future when you know your rights and what to expect from your financial planner. This checklist will help you determine your level of comfort with your existing financial planning relationship.

About CFP Board

The mission of Certified Financial Planner Board of Standards, Inc. (CFP Board) is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP® certificants and other stakeholders. CFP Board owns the CFP®certification marks in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes more than 64,000 individuals to use these marks in the United States.