What are the Qualifications of a Fee-Only CFP?
When you are working with someone to plan your retirement, it is important to make sure they have expertise in all aspects of financial planning, and the credentials to prove it. Just as you would only want a qualified doctor to advise you on your health, preparing for the retirement you want is far too important to be trusted with someone inexperienced.
A CFP is someone who has met the qualifications of the Certified Financial Planner Board of Standards, the gold standard of excellence in the financial planning profession. In order to use the CFP title, a candidate must:
- Meet a three-year experience requirement
- Pass a 10-hour exam
- Uphold an oath of ethics and follow the fiduciary standard of care, ensuring that they will act solely in their client’s’ best interest.
- Complete 30 hours of continuing education every two years to maintain the title
What is the Difference Between Fee-Only and Fee-Based?
A Fee-Only CFP is not only qualified, but they are also guaranteed to have your best interest in mind. A common question we get is: “What is the difference between fee-based and fee-only financial planning?” These are two of the three different types of payment structures financial planners use:
- A Commission-Based Financial Planner gets 100% of their compensation from commissioned sales. Their primary goal is to earn commissions by selling their client financial products, regardless of whether they meet the client’s needs.
- A Fee-Based Financial Planner earns commissions in addition to a small fee from their clients. This model creates a conflict of interest where the advisor is being paid by the client for their advice, but also hoping to make commission by selling products.
- A Fee-Only Financial Planner receives 100% of their compensation from the clients themselves. This means that their only focus is on helping their client succeed, with no other financial considerations or conflicts of interest. Ryan Zacharczyk, president of Zynergy Retirement Planning, is a member of NAPFA, the country’s leading professional association of Fee-Only financial advisors.
At Zynergy Retirement Planning, we do not accept any referral fees, kick-backs, or commissions of any kind. Our goal is to work with you to plan the retirement you have always wanted. Set up a free consultation with us today to work with Red Bank’s trusted Fee-Only CFP.