Following Up On A4A's Most Popular Story Of The Past Year: The Problem With The CFP Business Model

Monday, November 28, 2011 16:30
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Following Up On A4A's Most Popular Story Of The Past Year: The Problem With The CFP Business Model

Tags: CFP Board | compensation | financial planning | practice management

What does it say about the financial planning profession when the most popular story of the past 12 months pm A4A has been about the problem with the CFP business model?

 
To me, it suggests the seriousness of the issue. Yet nothing has changed.

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“People who can afford financial plans don’t need them, while people who need financial plans can’t afford them,” said the post, which I wrote on last June.
 
The post suggested that the CFP Board consider helping its licensees address this fundamental business challenge by allowing continuing education credit on practice management courses, or by boosting the minimum credit for maintaining a CFP license.
 
Nothing has changed since that post was written. No one’s solved the “financial planning wealth paradox” and the CFP Board hasn’t changed its policy. That’s too bad, particularly since this issue hit a raw nerve that this post was propelled to the top of our 12-month Trending list.
 
You can see all of the stories most popular with financial advisors on A4A’s Trending page, a new feature. It’s great mix of topics. Interestingly, a story we broke just last week about the problems at the Phoenix office of the nation’s largest RIA is already among the most popular stories of the past quarter.

 

Comments (3)

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agluck
Just recalled, I wrote that story after a survey showed 50% of CFPs do not provide comprehensive financial planning. See: http://advisors4advisors.com/i...rofession-
agluck , November 29, 2011
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Joshco0752
Licensing organizations tend to support the status quo. It's not likely that any investment regulatory organization is ever going to be actually interested in protecting outcomes for investors.
Joshco0752 , November 29, 2011
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robertv215
I think it is a bit narrow sighted to say that people who can afford financial plans don't need them. The reality is everyone can benefit from a financial plan. I challenge your definition of 'financial plan.' I also challenge that those who need them cant afford them. They may not be willing to pay for them, which is a very different statement. Like many things, they have to be convinced of the value and then they will find the money to pay for it. At the high end, if you had to sacrifice a whole year worth of savings in order to complete a comprehensive financial plan, but it ensured that you would know exactly what you needed to do to achieve your goals, you would do it. People propably spend upwards of $3000 on cable, internet, and cell phones; they could afford to spend money on securing their future. The reality is they dopn't see the value, and, not incorrectly, see financial people as primarily salespeople pitching products.
robertv215 , November 29, 2011

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