Frequently Asked Questions

We hope the following information answers your questions about CFP Board's 2007 Financial Planning Clinic. If you have a question not answered here, please feel free to send your question to clinic@CFPBoard.org or call External Relations at 303-839-0671.

• What is Financial Planning?
• What are the Benefits of Financial Planning?
• What is a Financial Planning Clinic?
• What is CFP Board?
• What is a CERTIFIED FINANCIAL PLANNER™ professional?
• Why should I choose a CFP® professional?
• What services should I expect to receive if I work with a financial planner?

What is Financial Planning?

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for child's education or planning for retirement.

The financial planning process consists of six steps that help you take a look at the "big picture" of where you are financially. The process involves 1) gathering relevant financial information, 2) setting life goals, 3) examining your current financial status, 4) coming up with a financial strategy or plan for how you can meet your goals, 5) implementing the financial plan, and 6) monitoring the success of the financial plan, adjusting it along the way if necessary. Using these six steps, you can work out where you are now and what you may need in the future in order to reach your goals.

CFP Board has put together a free Financial Planning Resource Kit that you can use to learn more about financial planning and your rights as a financial planning client. The kit also includes a brochure with a checklist of important questions to ask when choosing a financial planner. To request your free Financial Planning Resource Kit, visit CFP Board's Web site at: www.CFP.net/learn/requestkit.asp

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What are the Benefits of 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.

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What is a Financial Planning Clinic?

A Financial Planning Clinic is an opportunity to ask your financial questions to professional financial planners who can help you find the answers you need. You'll be able to meet one-on-one with volunteer CERTIFIED FINANCIAL PLANNER™ professionals qualified to discuss your financial issues. The financial information the financial planners provide is free, and there will be no sale of products or services and no strings attached. CFP Board hopes that all those attending the clinic will experience first-hand how financial planning can improve their lives.

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What is CFP Board?

Certified Financial Planner Board of Standards, Inc. (CFP Board) is a professional regulatory organization based in the United States of America that sets professional competency and ethics standards for personal financial planning. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. Founded in 1985 as a non-profit professional regulatory organization, CFP Board fosters professional standards in financial planning so that the public values, has access to and benefits from competent and ethical financial planning.

As a charitable/educational organization that does not have members or products to sell and that is not funded by any special interest, CFP Board exists to make people aware of the benefits of financial planning and to encourage people to seek out individuals who can help them apply the financial planning process to improve their financial lives.

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What is a CERTIFIED FINANCIAL PLANNER™ professional?

CERTIFIED FINANCIAL PLANNER™ professionals, also referred to as CFP® certificants, are individuals who have met CFP Board's education, examination and experience requirements, have agreed to adhere to high standards of ethical conduct and who complete CFP Board's ongoing certification requirements to use the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design). All CFP® certificants agree to abide by CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards, and have voluntarily submitted to the regulatory authority of CFP Board, which can suspend or permanently revoke an individual's CFP® certification if findings of unethical conduct are made. To learn more about the requirements for CFP® certification, or to learn how to pursue a career as a CERTIFIED FINANCIAL PLANNER™ professional, visit CFP Board's Web site at: www.CFP.net/become

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Why should I choose a CFP® professional?

Choosing a financial planner may be one of the most important decisions you make for yourself and your loved ones. Your financial planner can play a central role in helping you meet your life goals and achieving financial well-being, and as such needs to be competent and trustworthy. All CFP® professionals have met these strict requirements mandated by CFP Board:

• Education: CFP® professionals must develop their theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by CFP Board.
• Examination: CFP® professionals must pass a comprehensive two-day, 10-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format.
• Experience: CFP® professionals must have at least three years of experience providing financial planning services to clients before they can earn the right to use the CFP® certification marks.
• Ethics: As a final step to certification, CFP® professionals agree to abide by a strict code of professional conduct known as CFP Board's Code of Ethics and Professional Responsibility and agree to abide by CFP Board's Financial Planning Practice Standards.

CFP® professionals must renew their certification every two years. CFP® professionals are required to stay current with developments in the financial planning profession and fulfill ethical obligations. As part of the renewal process, they are required to complete a minimum 30 hours of continuing education every two years, including a course on CFP Board's ethical standards.

CFP Board's Web site provides information about each CFP® certificant who has provided a business address to CFP Board. That information includes any public disciplinary actions that CFP Board has taken against individual CFP® certificants. To search for a CFP® professional in your area, visit CFP Board's Web site at: www.CFP.net/search/

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What services should I expect to receive if I work with a financial planner?

A financial planner will be able to provide services that cover each of the six steps in the financial planning process.

1. Establishing and defining the client-planner relationship.
   The financial planner should clearly explain or document the services to be provided to you and define both his and your responsibilities. The planner should explain fully how he will be paid and by whom. You and the planner should agree on how long the professional relationship should last and on how decisions will be made.
2. Gathering client data, including goals.
   The financial planner should ask for information about your financial situation. You and the planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The financial planner should gather all the necessary documents before giving you the advice you need.
3. Analyzing and evaluating your financial status.
   The financial planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
4. Developing and presenting financial planning recommendations and/or alternatives.
   The financial planner should offer financial planning recommendations that address your goals, based on the information you provide. The planner should go over the recommendations with you to help you understand them so that you can make informed decisions. The planner should also listen to your concerns and revise the recommendations as appropriate.
5. Implementing the financial planning recommendations.
   You and the planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your "coach," coordinating the whole process with you and other professionals such as attorneys or stockbrokers.
6. Monitoring the financial planning recommendations.
   You and the planner should agree on who will monitor your progress towards your goals. If the planner is in charge of the process, she should report to you periodically to review your situation and adjust the recommendations, if needed, as your life changes.

While all CFP® professionals are required to learn about all financial planning topics, some choose to focus their business on only some financial areas or on only a few steps of the financial planning process. Before you hire a financial planner, you should receive information that describes the specific services you can expect to receive.

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Important Information Concerning CFP Board's Free Financial Planning Clinic

The independent professionals at this Financial Planning Clinic have volunteered to provide free general financial planning information. By accepting this information without paying any costs or fees, you expressly agree that you will hold all individuals and parties associated with this clinic harmless regarding any action you may ultimately decide to take in connection with information, conversations, advice or recommendations you may receive at the clinic.

Any facts, recommendations or advice you may receive at the clinic is for informational purposes only, and reliance on it is solely at your own risk. No client, representative or agent relationships may be formed at the clinic. Information obtained at the clinic is not intended to be a substitute for professional advice or assistance. Do not disregard professional advice or delay in seeking it because of any information you obtain at the clinic.

CFP Board does not recommend or endorse any individual professionals or professional services. CFP Board's Mission focuses on creating awareness of the importance of financial planning, helping underserved populations have access to competent and ethical financial planning and creating and enforcing uniform standards of competence, practice and ethics of financial planners.