Preparation for the CFP® Certification Exam and a career as a financial planning practitioner should begin with a fundamental question: What exactly is financial planning? It is a question likely to be answered somewhat differently by each practitioner and each client.

The Certified Financial Planner Board of Standards, which formulates and administers the CFP® exam, defines financial planning as a six-step process that allows individuals and families to determine whether and how they can meet their life goals through the proper management of financial resources. These goals can include retiring at a certain age, saving enough money to send a child to college or buying a new home.

In this section, we will review this process and the six steps that make it up.

References:
Leimberg, Satinsky, Doyle, Jackson, Tools & Techniques of Financial Planning, 7th edition, Chapter 3
Hallman, Rosenbloom, Personal Financial Planning, 7th edition, Chapter 1



Purpose, Benefits and Components

Related Articles
  1. Financial Advisor

    Boost Earnings Through Financial Planning

    Meeting more of your clients' needs will help you achieve your financial goals.
  2. Financial Advisor

    CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.
  3. Financial Advisor

    Financial Certifications With The Best ROI

    These certifications will land you a long, profitable career for an affordable price.
  4. Financial Advisor

    What Kind Of Financial Plan Makes Sense For You?

    Comprehensive financial plans can help people maximize their financial potential and make smart decisions. But how complex a plan do you really need?
  5. Personal Finance

    6 Life Changes That Affect Your Financial Plans

    Be sure to update your financial strategy when you have a major life change.
  6. Personal Finance

    3 Tips to Follow for Your Personal Financial Plan

    These three tips will help you determine what is most important to you, and place it at the heart of your financial plan.
  7. Financial Advisor

    The Alphabet Soup of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  8. Personal Finance

    The 7 Key Areas of a Comprehensive Financial Plan

    These are the seven key areas that need to be addressed in a comprehensive financial plan.
  9. Personal Finance

    Financial Planner: Job Description & Average Salary

    Discover the general job duties and average salary of a financial planner, as well as the education, training and skills necessary for success.
  10. Personal Finance

    Prepare For Your CFA Exams

    Find out how to get yourself ready for these lengthy and often daunting exams.
Frequently Asked Questions
  1. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money?

    Can pension money be used to fund other retirement accounts?
  2. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ...
  3. How does a company move from an OTC market to a major exchange?

    The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ...
  4. Can I roll a traditional IRA into a 529 college account for my grandchild?

    The short answer: Not without paying taxes. But as with much of the tax code, there are various nuisances and exemptions ...
Trading Center