There’s a lot of confusion about the term “financial planner” and what they do for clients. Some financial planners boast extensive credentials and professional designations, such as Certified Financial Planner (or CFP),

while others have no formal certifications at all. Adding to the complexity, some planners sell financial products, others focus purely on planning and advice, and some do both. Their services can also vary widely, from narrow specialties like insurance or tax planning to comprehensive, holistic financial planning.

What kind of financial planner do you need?

Given these differences, finding the right financial planner starts with understanding your own needs. Here are some factors to consider:

• Broad vs. Specific Needs: If you’re looking for comprehensive guidance across multiple areas—like retirement, investments, taxes, and estate planning—a Certified Financial Planner (CFP®) may be your best fit. If you only need help with a specific issue, like purchasing life insurance, a registered representative of a broker-dealer or a life insurance agent might suffice.
• Fee Structures: Some planners operate on a commission basis, while others are fee-only fiduciaries, meaning they’re compensated only by the fees you pay and are obligated to act in your best interest. Choosing a fiduciary can help avoid conflicts of interest.

What is a fee-only financial planner?

A fee-only financial planner focuses solely on planning and advice, excluding the sale of financial products. This structure eliminates potential conflicts of interest and ensures that recommendations are made with the client’s best interests in mind. At F5 Financial, we pride ourselves on being fee-only fiduciaries. Our approach is rooted in transparency and trust—two pillars essential for a successful financial partnership.

The CFP Code of Ethics

What does this procedure look like? The Certified Financial Planner (CFP) board lays out a clear framework, and we use the CFP Board’s code of ethics seven-step financial planning process with our clients. What is it, and how does it work?

1. Understand circumstances

• The process begins with understanding the client’s personal and financial situation through conversations and a review of relevant documents. For instance, education planning isn’t a priority for a client without children, but it’s critical for a family with three kids.

2. Identify goals

• Clients outline their goals, which may be short-term (e.g., paying off debt) or long-term (e.g., retiring at 60). These goals often intertwine personal aspirations, like moving to Florida, with financial objectives, such as building a retirement portfolio.

3. Analyze courses of action

• The planner evaluates the client’s current financial trajectory and explores alternative strategies using advanced planning tools to ensure the client can achieve their goals efficiently.

4. Develop the financial plan

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  After analyzing various options, the planner formulates recommendations tailored to the client’s unique circumstances.

5. Present the plan

• The proposed financial plan, including alternative courses of action, is presented to the client. This step ensures the client understands and feels confident in the recommendations.

6. Implement the plan

• The planner helps execute the recommendations, often coordinating with other professionals, such as CPAs or estate attorneys. Fee-only planners avoid earning commissions, ensuring their guidance remains unbiased.

7. Monitor and update (ongoing)

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  Life is unpredictable. Regular reviews and updates to the plan ensure it evolves with the client’s changing circumstances, whether due to market fluctuations, family events, or career changes.

Why Choose a CFP®?

A good financial planner is more than just a consultant; they’re a long-term partner in your financial success. While not everyone needs a comprehensive financial plan, the structured approach outlined above provides a solid foundation for achieving financial goals.

If you’re ready to take control of your financial future, F5 Financial is here to help. As fee-only fiduciaries, we are committed to providing objective advice tailored to your needs.

For more information on how we can support you and your family, please visit us at www.f5fp.com, or schedule a free consultation.

Here is additional information on fee-only financial planners, and financial plans.

Would You Like More Support?

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• Do you have a well-defined Investment Policy Strategy that is used to drive your investments in support of a comprehensive financial plan?

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• If not, would you like to partner with someone who is used to helping people get through these struggles and (then, with confidence) implement portfolio strategies in a systematic manner while focusing on your desired outcomes?

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If so, feel free to send us an email or give us a call. We’d love to have the opportunity to help you find a bit more peace of mind when it comes to investing.

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