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The Importance of Financial Planning: This Is Why You Need a CFP® Professional

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importance of financial planning

You’re probably already aware of the importance of financial planning for the long-term success of any individual, family, or business. With the right framework in place, achieving financial freedom or reaching your goals is easier to manage. Unfortunately, many people underestimate the power of working with professionals. By partnering with a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional, you have a knowledgeable ally who can lead you in the right direction.

The Importance of Financial Planning

Having the ability to fund a child’s education, have a secure retirement, buy a dream home, or keep a business growing rarely happens by accident. Instead, it takes time, dedication, and focus, along with the right mix of banking services and financial products to make your goals a reality.

Financial planning encompasses every aspect of your financial life, not just investing. Everything from the budget you craft to the savings account you choose to the retirement plan you select is part of your financial plan.

Allowing these decisions to happen haphazardly means you aren’t optimizing your selections to make achieving your goals easier. However, when you embrace financial planning, you begin to look at these choices with a discerning eye. You understand how they play a role in your long-term success, and this fundamental shift in mentality can make a substantial difference in your life.

Why You Need a CFP® Pro in Your Corner

Many people assume they can navigate their financial lives on their own and reach success. However, understanding the nuances of every decision isn’t something that comes naturally. Instead, it takes a significant amount of knowledge to ensure that every important detail is considered.

When you partner with a financial planner, you gain access to their expertise. They can provide you with clear and customized guidance based on your unique goals, allowing you to develop a robust plan according to your needs.

However, not all financial planners are created equal. Some people assume that everyone who calls themselves a financial planner is certified, but that simply isn’t the case. The title of financial planner isn’t reserved for those with specific training or experience, so relying on the title alone when you select a partner isn’t a guarantee that they have an appropriate amount of knowledge.

But, when you choose a CFP® professional, you can rest assured that they meet rigorous requirements set by the CFP Board. This includes:

  • At least 4,000 hours of financial planning experience;
  • Passing a comprehensive CFP® certification exam;
  • Training in 72 separate financial topics that range from investing to estate planning; and
  • The promise that their clients’ interests will come before their own when they are providing financial planning services.

Ultimately, by partnering with a CFP® professional, you are working with the best and brightest financial planners available. They will always work to make your goals a reality by creating customized solutions that meet your precise needs.

When’s the Right Time to Start with a CFP® Pro?

It’s a common misconception that only the rich need a CFP® professional in their corner. Similarly, some believe that households without children or young, single adults don’t need the support of a CFP® professional.

In reality, achieving a secure financial future should be a priority for everyone. The earlier you get started, the easier it is to achieve your goals. This means that, no matter what life stage you are in, now is the perfect time to partner with a CFP® professional.

A CFP® professional can help you take control of your financial life, no matter where you are today. A functional budget enables you to pay off debt and start saving for retirement or other goals, and a CFP® financial planner can get you moving in the right direction.

If you recently had children and want to make sure they can afford college, a CFP® professional can adjust your approach to make this financial objective possible. If you want to start investing but don’t know where to begin or are getting ready to retire and want to make sure you use your savings wisely, your CFP® professional partner has the expertise you need to move forward confidently.

Ultimately, no matter your age or financial situation, starting with a CFP® pro now increases the odds that you’ll have your ideal financial future.

How to Choose a CFP® Professional

Selecting a CFP® pro doesn’t have to be a daunting experience. There are over 80,000 CFP® professionals in the United States, so there are likely a few near your home or office.

As you begin evaluating your options, consider which financial areas represent your largest concerns. For example, is being ready for retirement your most pressing priority? Do you dream of starting a business but want to make sure that your financial future isn’t put in jeopardy? Is there another goal that motivates you to strive for greater success? Do you have a financial concern that keeps you up at night?

While all CFP® professionals receive training in a broad array of financial topics, understanding your own priorities ensures that you partner with a CFP® pro who can support your goals. Then, you can meet with those who work in your area and see which one best fits your needs, allowing you to select a CFP® professional who best aligns with your mindset.

Working with a CFP® Pro

Once you select a CFP® professional to partner with, it’s time to start working toward the financial future of your dreams. While many would assume that gathering financial documents to present to your CFP® professional partner is the biggest priority at the beginning (and it is important), something else is more critical to your success.

As you start working with a CFP® professional, make sure that you are always honest about your goals and personal priorities. If they are going to create a customized blueprint for financial success, they need to know what that looks like through your eyes. That way, they can identify products and solutions that let you live your best life today, tomorrow, and well into the future.

If you are ready to find a CFP® professional that can help you achieve financial freedom, begin your search at LetsMakeaPlan.org today. You can also get more information about #LetsMakeAPlan on Facebook.

This article was written in partnership with CFP Board of Standards, Inc.

What goals are part of your financial planning? Share with us in the comments below!


Learnvest Features Review

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learnvest features review

LearnVest is a personal finance company that helps with financial planning, management, and investments. It has several different features that allow you to budget and manage your money and has become a very well-known and widely used website. Below is a review of the different features that you should check out if you’re planning on signing up for their services:

Financial Planner

One of the biggest services offered is that they pair you up with a certified financial planner. Your financial planner helps you tracks your spending and investments and set financial budgets and goals. They can also offer investment and portfolio advice and help you figure out what type of budget best fits your life. This is a great feature for someone who is planning to overhaul their finances and wants the help of a financial planner without the trouble of searching one out on their own.

Money Center Tool

Their Money Center Tool allows users to pull up information on all of their financial accounts and track spending, manage budgets, and set financial goals. You can also share you account information and desktop with your financial planner so you’re both on the same page when you’re discussing financial changes you may or may not want to make. The one major fault is that purchases can sometimes get incorrectly categorized which can get frustrating for those who like their budget neat and clean.

Guidance

The website also provides a step-by-step guidance on a variety of different financial accounts such as retirement, investment, and debt. This is provided by certified financial planners and can be a great option for someone who needs to cut down debt or wants to plan for retirement but doesn’t know how to get started.

Set and Track Goals

LearnVest also allows you to set and track specific customizable goals. For instance, say you want to plan a big overseas trip but may be having trouble saving money. You are able to mark that out in your account, hook up a financial account, and keep track of your savings until you reach your goal. They’ll provide you with help on how to reach that goal and how much money you can realistically save each week or each month.

Articles

The website provides a collection of finance related articles that cover a lot of different topics such as financial planning apps or the best ways to set and keep a budget. They even range from articles on budget friendly meals to ways to save money on your next big trip or purchase. One of the issues some users have is that editorial content can be a bit aggressive, but for the most pat you will get quality information that will be helpful for your personal finances.

Insurance

You work hard for your money, so it makes sense that you want to make sure that it’s secure and protected. LearnVest agrees with that sentiment and provides several guidelines on how to best insure your money and assets, as well as articles telling you what you should and should not do. Of course, they also provide help in the form of their financial planners as well.

Investment Advice

You also get investment advice that includes guidance for first time investors and allocation recommendations for seasoned investors. They want to make sure that you’re doing the most with your money in a way that will best benefit you. If you’re worried about your investments, your financial planner may be able to help you reallocate money or compare your portfolio to the market standard.

Ongoing Support

Another feature is ongoing support and solutions for whenever your financial situation changes. Whether you have suddenly come into a lot of money or have lost a lot, there are planners that can help you figure out the next steps to take so that you’re not only staying on budget, but that all your accounts are still in working order. The company’s support system works to make sure that your investments are in good hands and that your budgets and goals are working up to their full potential.

Custom Challenges

Everyone has a different situation, so obviously when it comes to financial planning, one solution doesn’t fit all. Their Custom Challenges is a feature that allows you and your financial planner to customize your financial decisions into small decisions and benchmarks that work for your lifestyle. What works for one person won’t work for everyone, so being able to customize your savings, investment, or financial goals to your lifestyle is a great option that you may want to look into.

Safety

The company uses a secure technology that many banks and credit card companies also use. Furthermore, while the information from your financial accounts appear on the website, you can’t do anything more than look at your money and see the suggestions and guidelines on how to manage it. If you want to transfer money, for instance, you have to make that transaction at your actual financial institution. This helps to keep your money safe and all of your information protected and private.