Can anyone educate me on how certified financial planners earn their income? Do they get a commission? How can I be sure if a CFP is a "good" one? I know they have to have so many hours of education every year to keep up with the changes I'm sure, but why would they care if I lose my money or make money. In other words, what's in it for them? Any help would be greatly appreciated. Thanks !
2007-02-13 16:58:15 · 3 answers · asked by vik 3 in Business & Finance ➔ Personal Finance
The CFP is just a designation that a person can earn, like the CPA--it's not a specific job. Some stockbrokers, analysts, financial planners, insurance salesmen, or trust agents will decide to get the CFP for various reasons.
Few jobs require you to be a CFP; it's often just an added bonus on your resume. Having the designation can help you get a job--or it can help you get clients if you work in sales (which is what financial planning/wealth management is).
Judge a financial professional (with or without a CFP) based on his or her experience and track record and reputation.
As for your other questions, financial planners/wealth managers sometimes charge by the hour to give advice, like an attorney. They want you to make money so you recommend them to your friends and they get more business. Other advisors make money by charges a percent of the assets you give them to manage (like if you give them $100,000 to manage, they get 1% or $1000 each year). So if your portfolio grows, they get paid more next year.
2007-02-14 04:24:27 · answer #1 · answered by lizzgeorge 4 · 0⤊ 0⤋
There are several ways that financial planners follow to make money. One is analyzing your condition and providing you a suggestion accordingly. Another one is by selling you their products that you use for your purposes.
2014-10-10 19:42:01 · answer #2 · answered by Nafis 2 · 0⤊ 0⤋
Financial planners are in business to make money.
Some charge you a fee to analyze your situation and guide you in what you should invest in.
others have different products that they get commisions or kick backs from. that the get you to buy.
Both types are legitimate and both want you to succeed.
But there is a cost for advice, one way or another.
2007-02-13 17:08:25 · answer #3 · answered by bob shark 7 · 0⤊ 0⤋