Why do individuals choose to become CERTIFIED FINANCIAL PLANNER™ professionals?
Research by Aite Group shows that CFP® certification can be a key differentiator for firms and individual financial professionals looking to improve the quality of their advice and provide additional value to clients.
At a time when unemployment is soaring and many Americans are reaching retirement age, the need for personal financial planning expertise is greater than ever. Recruiters and prospective employers recognize CFP® certification as the most desired designation in this growing field. Becoming a financial planner offers:
- High income potential
- Dynamic, respected profession
- Satisfaction from helping people meet financial goals and plan for the future
Your Path to CFP® Certification
Joseph McLaughlin, CFP®, Financial Advisor, First Command Financial Services, is interviewed about how important becoming a CFP® professional was to his financial advising career.
Key findings of the research – which was commissioned by Certified Financial Planner Board of Standards, Inc. – include:
Download the Aite Group Research Report
- While 20 percent of all financial advisors hold the CFP® certification, more than 70 percent of all team practices have at least one CFP® professional, providing a holistic view of clients’ finances;
- 87 percent of clients who work with a financial advisor who has CFP® certification are satisfied or very satisfied compared with 72 percent of those who work with an advisor without certification;
- Sole CFP® professionals generate between 40 and 100 percent more revenue than those financial professionals who do not hold the certification; team practices with a CFP® professional on staff generate 30 percent more in revenue;
- Financial professionals with CFP® certification “work with more of their clients on a long-term, recurring basis, managing 45 (percent) of client assets for an AUM-based fee;”
- 87 percent of CFP® professionals said that financial planning was “equally important” or “more important” than investment management to their advisory practice; and
- CFP® professionals with less than ten years of industry experience are twice as likely to earn more than $215,000 annually (17 percent to 8 percent); and 35 percent of CFP® professionals with more than ten years of experience earn $215,000 annually compared to 23 percent of those advisors without the certification.