What is a CFP®/ CERTIFIED FINANCIAL PLANNER® professional?

What do CERTIFIED FINANCIAL PLANNER® professionals do?

Money plays a major role in just about every part of life. It impacts the ability to create a desired lifestyle and provide for those we care about. When it comes to personal finances, a CERTIFIED FINANCIAL PLANNER® professional‘s guidance can help you plan for and achieve your long-term goals. CFPs can provide advice on topics ranging from budgeting and retirement to investments and insurance. They go through rigorous professional training to achieve their certification and are held to high ethics standards.

CFP® certification requirements

CFP® practitioners work closely with individuals as they plan for personal milestones, and it’s critical to form a relationship of trust. The CFP Board has set several requirements to support the process and ensure a high standard of service:

• College degree
• Specialized financial training
• Professional experience
• Successful completion of the certification exam
• Strict ethical standards
•  Comprehensive knowledge of personal finance and investment strategies

Are CERTIFIED FINANCIAL PLANNER® professionals fiduciaries?

CERTIFIED FINANCAIAL PLANNER® professionals are fiduciaries. The duty to act as a fiduciary is included in the CFP Board’s Standards of Conduct. This means they are ethically and legally bound to put your interests above their own. For example, when advising you on investments, they’re obligated to recommend those that best suit your goals, even if other investments would earn them a higher commission. This fiduciary duty promotes objective advice that’s tailored to your specific needs. If you are working with a financial professional, you should always ask if they are a fiduciary.

What is the difference between a CFP® professional and a CFA® Charterholder?

CERTIFIED FINANCIAL PLANNER® professionals and Chartered Financial Analyst® Charterholders are both highly trained individuals who are held to high ethical and professional standards—however, a few significant differences set them apart:

• Types of clients* — CFP® practitioners often work for individuals directly or on behalf of a financial institution, helping them with financial goals which can include investment strategies, estate planning, and long-term goals like putting kids through college. CFA® Charterholders, while they may work for individuals, often work for large institutions like mutual funds, hedge funds, or private equity firms where they perform financial analyses used in wealth management and research-based decisions for investment banking. Some CFA® Charterholders manage portfolios for high-net-worth individuals.
• Geographic recognition — The CFP® certification is the top-tier financial credential in the U.S. and is nationally recognized, while the CFA® designation is recognized globally. It’s considered one of the most prestigious qualifications in the financial industry. Some advisors hold both credentials.
• Training and certification requirements — The CFP® exam is administered by the Certified Financial Planner Board of Standards and the CFA® exam by the CFA Institute. Both organizations uphold high standards, although the education and examination requirements of the CFA® program tend to be more rigorous. 

Choosing the right CERTIFIED FINANCIAL PLANNER® Professional

A CFP is more than a number cruncher. They’re a partner in helping you reach some of your biggest goals—like homeownership and securing your family’s financial future. Choosing a financial advisor is a decision that requires care. Here are some considerations that can help:

• Personal preparation — Think about your objectives and what you’d like to accomplish financially.
• Credentials — Make sure the financial advisor you’re considering is certified. This requirement ensures that they’ve met high educational standards and must act as a fiduciary. Also check if there are any disclosures of previous legal or disciplinary issues.
• Services — Understand the services they offer. Although CFP® practitioners have comprehensive training in wealth management, some may specialize in particular areas such as budgeting or debt management. Choose someone whose services match your goals. If applicable, ask about their approach to investment management.
• Payment terms — Find out how they’re paid (more on that below).
• Fiduciary duty — Ask the advisor to explain their fiduciary duty to you.
• Chemistry — Your finances are personal. It’s critical to be comfortable with your financial advisor. Make sure the individual you’re dealing with listens to your needs and concerns, explains things clearly, and understands your values.

How do CERTIFIED FINANCIAL PLANNER® professionals get paid?

Financial planners may charge fees (flat, hourly, or service-based), earn commissions, or a combination of both. Some are paid by an advisory fee, which is similar to a retainer. Or, if working for a company, they may earn a salary. Some companies pay CFP® professionals based on the amount of revenue they generate for the business. A percentage of assets under management is another widely used payment structure. Common rates tend to range from .75% to 1.5%.

How to find a CERTIFIED FINANCIAL PLANNER® professional

CFP® practitioners can be found through the CFP Board. You can also find licensed advisors through financial services providers like Eagle Strategies LLC, a New York Life company or the New York Life Agent Locator. You can check a CFP professional’s credentials at BrokerCheck, a free service provided by the Financial Industry Regulatory Authority (FINRA).

How to become a Certified Financial Planner

To pursue a career as a CFP® professional, several requirements must be met:

• College degree — CFP® professionals must hold a bachelor’s degree or higher from an accredited college or university. The degree doesn’t need to be in finance or a related discipline.
• Professional experience — Three years of full-time experience in personal financial planning, or equivalent part-time experience is required.
• Specialized training — In addition to a college degree, CFP® practitioners must complete a CFP Board-approved program to become well-versed in areas such as budgeting, insurance, investment, retirement, estate planning, and tax strategies—or they must hold one of the following designations:
  • Certified Public Accountant (CPA)
  • Chartered Financial Consultant® (ChFC®)
  • Chartered Life Underwriter® (CLU®)/Chartered Financial Analyst® (CFA®)
  • PhD in financial planning, finance, business administration, or economics
  • Doctor of Business Administration
  • Attorney’s license
  • CFP® certification from a country other than the U.S.
• Certification exam — Not surprisingly, CFP® professionals are required to pass the proctored final certification exam.
• Application — After passing the certification exam, candidates must apply to the CFP Board with verification of the completed requirements.
• Ethics course — Candidates must also pass the CFP Board’s ethics course.
• Continuing education — To maintain certification, CFP® professionals must complete 30 hours of additional educational credits every two years.

Should I work with a Certified Financial Planner?

The world of finance can be complex. Because money touches every part of your life—from everyday decision-making to big, life-changing goals—a financial planner can help you make smart choices with confidence. And as life changes, it can be helpful to have professional guidance to help you stay on track.

Certified Financial Planner® FAQs

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* Silva, Derek, CEPF®. “CFA vs. CFP®: Which Do You Need?” SmartAsset.com, updated on June 6, 2025.