According to recent research conducted by the Certified Financial Planner Board of Standards, the number of Americans working with a financial advisor has grown to 40 percent, up from 28 percent in 2010, reflecting the increasing demand for personal financial advice.
With more complexity and uncertainty in today’s economy, Americans are saying they need better financial guidance, especially for long-term goals such as retirement.
Consumers are turning increasingly to advisors who hold the Certified Financial Planner™ certification. Seven in ten of those surveyed indicate they choose to work with a CFP® professional.
“By working with a CFP® professional, consumers can have confidence in knowing that they are working with a competent and ethical financial advisor who is looking after the consumers’ needs to help them make smart financial decisions and plan for long-term financial goals like retirement,” said Rich Rojeck, CFP®, Chair of CFP Board’s Board of Directors.
Why do consumers prefer to work with a CFP® professional?
9 out of 10 Americans say that when they receive investment advice from a financial advisor, the person providing the advice should put the consumers’ interests ahead of theirs and should have to tell consumers up front about any conflicts of interest that could potentially influence that advice. Unlike most other financial advisors, CFP® professionals are fiduciaries required to put their clients’ interest ahead of their own.
A majority of those surveyed commented that they believe that most other financial advisors act in their companies’ best interests rather than the consumers’ best interests.