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When you work with a CFP
practitioner, you are the focus of the financial planning relationship and
your needs drive the financial planner's recommendations. CFP practitioners
follow certain standards - called Financial Planning Practice Standards -
when providing financial planning. These standards are based on the
six-steps financial planning process described below. This broad-based
approach to financial advice distinguishes financial planning practitioners
from other professional advisers who typically focus on only one area of a
person's financial life.
| The Financial Planning Process |
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Establishing and defining the client-planner relationship
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Gathering client data
including goals
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Analyzing and
evaluation the client's financial status
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Developing and
presenting financial planning recommendations and/or alternatives
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Implementing the
financial planning recommendations
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Monitoring the
financial planning recommendations
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When
providing financial planning, a CFP practitioner has agrees to define the
scope of the work she or he will do with you, explain and document the
services she or he will provide, discuss the method of compensation and
relay any other relevant information. CFP practitioners are also required to
work with you to determine your personal and financial goals, your tolerance
for financial risk, and your time frame for achieving results. Practice
Standards also require a CFP practitioner to
gather all necessary financial
information
about you when developing your
personal financial plan. |
