Celebrating Our Teammates – The CFP®’s
Dave and Ben sit down to discuss their experience of sitting for the CFP® exam, how this affects the way in which we approach and serve our clients, and how it supports TEN Capital's belief for continuous growth.
Five Things You Should Know
Insights for Investors
“When you become stagnant and aren’t improving by the day, you are only moving toward your failure.” ― Pooja Agnihotri
What does it mean to be a CFP® professional?
I know my wife is happy to finally have me back. For about eight months my mind was sucked away into CFP® land while she supported me and kept the kids at bay so I could work in the evenings and on the weekends. Why the heck was I doing this? To grow.
A CFP® (CERTIFIED FINANCIAL PLANNER) is arguably the top designation one can achieve in the field of financial planning. It’s a test of understanding in many areas that would affect a client’s financial plan. When Dave Gordon and Jon Heideman in our office said they were going to start the long process of working toward their CFP® designation, it further fueled my desire to grow in my craft as well. I am proud to say that as of now, all three of us have successfully passed the necessary exams and are able to officially use the title of CERTIFIED FINANCIAL PLANNER (CFP®).
To earn the right to bear those three letters one needs to achieve the 4 E’s of the CFP® designation: Education, Exam, Experience and Ethics.
Education:
There are two parts to the education component. First, one needs to have a four-year degree to be able to sit for the exam. Second, you must complete the CFP® Coursework through an approved school. This can take a year or more for many applicants.
Areas of study include Professional Conduct and Regulation, Principles of Financial Planning, Risk Management and Insurance Planning, Investment Planning, Tax Planning, Retirement Savings and Income Planning, Estate Planning, and the Psychology of Financial Planning.
Some of the above will be used often in our practices, while some of the education has provided us with a specialty knowledge that we will be able to use when the opportunity arises. While this process helps you to know many answers to complex questions, even more it helps you realize the questions you need to be asking and when to seek out further information to guide your client.
Exam:
I hate tests and this one was a doozie. The test is comprised of two sections that can last up to three hours in length each adding up to a 6-hour test when all said and done. Everything you learned in the education component is fair game for a question (e.g., What’s the tax bill for an ISO when issued?) Sounds fun right!? Once completed you receive a preliminary pass or fail and about 60% of candidates pass.
Experience:
As much as education is important, so is experience. If one has obtained a CFP® designation, it tells you this isn’t their first year on the job. To be a CFP® professional one needs to have been working in finance in some capacity for a minimum of 4,000-6,000 hours depending on background of work, so they’ve had the opportunity to gain the real-world experience to qualify as a CFP®. Remember, the hope is to take the CFP® exam knowledge and use it in service of our clients.
Ethics:
If you’re a CFP® professional, you’re going to have to adhere to the Fiduciary Standard when providing financial advice. That means you legally need to do what is in the best interest of a client or face being terminated or prosecuted.
In Closing
The CFP® Certification is no joke and like anything, I have a lot more respect for those that have taken it before me.
And while there is certainly a sense of accomplishment, what excites me most is that all three of us tackled this challenge and can further support each other as a team. This is another example of the spirit that lives at TEN to perpetually improve and better serve our colleagues and clients in any way we can.
At TEN Capital, we’re about trying to achieve growth. Growth of our clients’ portfolios and their peace of mind, growth in the number of our relationships, and growth in our status within the community.
However, we NEVER lose sight of the proper path to achieving those goals:
To be clear, our “drive” with respect to each of the items above is about living up to the honor and obligation it is to serve you and your family, as well as make you proud to be a part of the TEN Capital community.
While this may not have been the most invigorating read, I hope it gives you a better idea of what it means to be a CFP®, and how important improving your experience is to us here at TEN.
As always, the team is here for any of you who may have questions – if you don’t work with us, but have been considering sitting down, hopefully this will further pique your curiosity about this group that relentlessly tries to raise its game.
Have a great weekend and stay warm!
Ben and the TEN Capital Team
Data, Just the Data
Data points this week included: