TOPICS. What is a Certified Financial Planner (CFP?) Achieving the CFP Certificate How To Stand Out How To Find The Right Fit Serving Clients

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2 TOPICS What is a Certified Financial Planner (CFP?) Achieving the CFP Certificate How To Stand Out How To Find The Right Fit Serving Clients 2

3 What is A Certified Financial Planner TM? Wipfli LLP 3

4 CFP BOARD MISSION To benefit the public by granting the CFP certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 4

5 FINANCIAL PLANNING STEPS Engaging in 8 steps as defined by the CFP Board: 1. Establishing and Defining the Client-Planner Relationship 2. Gathering Information Necessary to Fulfill the Engagement 3. Analyzing and Evaluating the Client s Current Financial Status 4. Developing the Recommendation(s) 5. Communicating the Recommendation(s) 6. Implementing the Recommendation(s) 7. Monitoring the Recommendation(s) 8. Practicing within Professional and Regulatory Standards Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 5

6 WHY BE A CFP? A dynamic, respected profession with high income potential Helping people with one of their biggest stresses in life and plan for their (and their family s) futures Solve financial problems Serve as a trusted advisor, counselor and financial coach Create more meaningful relationships, have happier & stickier clients. More career opportunities (in demand certification and higher chance as a successful independent practitioner) Set yourself apart (only ~20% of the industry hold the designation 1 ) Schmitt, Sophie. Adding Expertise to a Financial Advisor s Practice: Measuring the Contributions of CFP Professionals. Aite Group LLC., July Accessed on April 14,

7 WHY BE A CFP? Happier Clients: 87% of clients working with a CFP professional are satisfied or very satisfied, (72% for non-cfp advisors) Higher Revenue: CFP professionals in a solo practice generate between 40% & 100% more revenue than non-cfp advisors. If a CFP is part of a team practice, the group earns about 30% more. 131% more revenue at insurance broker-dealers, 18% more at wirehouses, 67% more at independent firms Schmitt, Sophie. Adding Expertise to a Financial Advisor s Practice: Measuring the Contributions of CFP Professionals. Aite Group LLC., July Accessed on April 14,

8 WHY BE A CFP? Stickier Clients: 1 CFP professionals manage 45% of client assets versus 30% for non- CFP advisors CFP professionals deliver financial plans/analyses to ~30% more clients Higher Income: Entry-level CFP professionals make ~$5k more 2 CFP professionals with 10 years of experience have a 52% higher chance of earning $215,000+ a year than non-cfp advisors 1 1 Schmitt, Sophie. Adding Expertise to a Financial Advisor s Practice: Measuring the Contributions of CFP Professionals. Aite Group LLC., July Accessed on April 14, "Do CFPs Really Make More Money Than Non-CFPs?" ThinkAdvisor, July 10, Accessed on April 14,

9 GLOBAL CFP PROFESSIONAL GROWTH The global number of CFP professionals grew by more than 4,000 last year. An increase of 54 percent over the last decade 161,821 total CFP professionals in the US. Source: Financial Planning Standards Board, Global CFP Professional Growth And Distribution: Accessed on April 14,

10 CFP PROFESSIONAL MOVING FORWARD Opportunities Demand for Financial Advisors expected to grow by 32% Employment for personal financial advisors is projected to grow much faster than the average for all occupations through 2020 Financial Advisor ranked #5 in Best Business Jobs by U.S. News and World Report 2015 More CFP professionals over the age of 70 than under 30 Average age for new CFP professionals is ~37 Only 23 percent of all CFP professionals are women Source: Financial Planning Standards Board, Global CFP Professional Growth And Distribution: Accessed on April 14,

11 Achieving CFP certificate Wipfli LLP 11

12 PROCESS FOR ACHIEVING CFP CERTIFICATE 1. Education Approved curriculum 2. Examination 3. Experience Comprehensive electronic exam 3 years practical experience (or 2 year apprenticeship) 4. Ethics Strict code of conduct Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 12

13 EDUCATION Bachelor s Degree (any field of study) Coursework Requirement (18 Semester Hours) 1. Completing a course of study at a CFP Board-Registered Program, or 2. Submitting previous coursework for a Transcript Review, or 3. Holding certain approved licenses, degrees or designations, (CPA, ChFC, CLU, CFA, etc) The coursework requirement includes completion of a financial plan development (capstone) course registered with CFP Board. Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 13

14 COURSEWORK REQUIREMENT Subject areas of focus: General principles of financial planning Insurance planning Investment planning Income tax planning Retirement planning Estate planning Interpersonal communication Professional conduct and fiduciary responsibility Financial plan development (capstone) course. A CFP program can be completed in ~18-24 months Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 14

15 EXAM 1-day, two 3-hour parts, Computer-based testing Testing Windows in March, July, and November 170 multiple-choice questions Stand-alone questions Short scenario question sets Lengthy case study question sets Preliminary results are provided to candidates upon completion (verified within 3 weeks) CFP Exam Candidate Handbook 2016 Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 15

16 EXAM 8 Principal Knowledge Topic Categories 1. Professional Conduct and Regulation (7%) 2. General Financial Planning Principles (17%) 3. Education Planning (6%) 4. Risk Management and Insurance Planning (12%) 5. Investment Planning (17%) 6. Tax Planning (12%) 7. Retirement Savings and Income Planning (17%) 8. Estate Planning (12%) Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 16

17 EXPERIENCE STANDARDS 3 Year Requirement (6,000 Hours) Or 2 Year Apprenticeship Exception (4,000 Hours) additional requirements Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 17

18 3 YEAR REQUIREMENT PART 1: Fulfill one or more of the six elements of the personal financial planning process: Establishing and defining the relationship with the client Gathering client data Analyzing and evaluating the client's financial status Developing and presenting the financial planning recommendations Implementing the financial planning recommendations Monitoring the financial planning recommendations Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 18

19 3 YEAR REQUIREMENT PART 2: Experience can be satisfied through one or more of the following five ways: Personal Delivery to individual client Supervision of personal delivery to individual client Support of personal delivery to individual client (direct, indirect) Teaching Courses at a CFP Board-Registered Program (up to 3 years of Experience credit may be earned) Finance-related courses at a university, offered for college credit (a maximum of two years of Experience credit may be earned under this option) Internships and/or Residency Programs Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 19

20 2 YEAR APPRENTICESHIP EXCEPTION Direct supervision by a CFP professional PART I: Must fulfill All six elements of the personal financial planning process Part II can only be satisfied through personal delivery to individual clients. Apprenticeship experience cannot be combined with non- Apprenticeship experience hours. Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 20

21 ETHICS 8 Major Domains 1. Character and Fitness Standards: must disclose criminal, civil inquiries, bankruptcy, customer complaint, termination by your employer (and more). 2. Background Check: CFP Board conducts a detailed background review for all candidates 3. Code of Ethics 4. Rules of Conduct 5. Practice Standards Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 21

22 OTHER FINANCIAL DESIGNATIONS Certified Public Accountant (CPA) Personal Financial Specialist (PFS) Chartered Financial Analyst (CFA) Certified Investment Management Analyst (CIMA ) Certified Private Wealth Advisor (CPWA ) Certified Divorce Financial Analyst (CDFA) Chartered Retirement Planning Counselor (CRPC ) Chartered Retirement Plan Specialist (CRPS ) Chartered Financial Consultant (ChFC) Chartered Life Underwriter (CLU ) Chartered Special Needs Consultant (ChSNC ) Your Advisor s Certifications (What On Earth Do They Mean?) 22

23 GRADUATE DEGREE PROGRAMS Masters of Science in Financial Planning (MSFP) Masters of Business Administration (MBA) Many different specializations Masters of Taxation (MST) Masters of Public Accountancy (MPA) 23

24 HOW TO STAND OUT 24

25 RESUME/COVER LETTER List your interest in the designation Technical Skills: Experience with Financial planning software, Excel, Morningstar, Financial technology, CRM Internships in Financial Industry Professional memberships/affiliations Speaking engagements Soft Skills: highlight any direct service with clients/customers Bullet points of key skills earned at jobs 25

26 NETWORKING Tap into the hidden job market Can build Mentoring relationships Join the Financial Planning Association LinkedIn Join an industry group (online recruiters will note this) Chamber of Commerce Alumni Events Job Fairs Always have business cards (or a resume) 26

27 PLENTY OF RESOURCES CFP Board Resources Networking 101 webinar Resume Writing Interviewing Skills CFP Board Jobs Page One on one job coaching and mock interviews Source: Certified Financial Planner Board of Standards, Inc. (CFP Board), 27

28 HOW TO FIND THE RIGHT FIT 28

29 FINDING THE RIGHT FIT Individual Advisor vs. Team approach RIA vs. Broker-dealer CFP s at the employer Business Development role or Client-Service role? Compensation model Assistance with obtaining the CFP and other continuing education Mentorship programs Well-defined career path 29

30 CAREER PATH EXAMPLE 1. Intern (Learn Industry, Technical Skills) Prepare Investment Policy Statements and Agreements Maintain and enter data in CRM, Financial planning, and portfolio management tools 2. Jr. Advisor (Add Depth, Soft Skills) Prepare Financial Plans, Portfolio reviews Attend Client Meetings, Handle Client Calls Train Interns 30

31 CAREER PATH EXAMPLE 3. Sr. Advisor (Begin Leadership Path) Added as Primary/Secondary advisor for existing client accounts Business Development (new clients) Review Financial Plans 4. Manager (Firm Leader / Partner) Primary Advisor for A clients Develop team goals, strategy, lead generation Mentor and Team Coach 31

32 WHY CULTURE IS IMPORTANT 32

33 SERVING CLIENTS 33

34 DISCOVERY Geography & Culture Where are your family members now? Vocation & Career Track What did you study? Hobbies & Interest Where do you like to go? Helping Clients Sort Out Their Priorities If you had all the money you would ever need, what issue would you first address? Investigating Your Client s Financial Experience What s the best investment decision you have ever made? Whose decision was it? Money Principles Are there any investments you would avoid as a matter of principle? General Life Principles What are the guiding principles that you follow with your personal and professional life? 34

35 BRINGS THEIR ENTIRE FINANCIAL LIFE TOGETHER Retirement Planning Tax Planning RETIREMENT PLANS Family, Estate Planning Business Succession Insurance & Risk Management Investment Management & Advice Interactive Planning

36 ONGOING PROCESS Client relationships are intended to be ongoing, lifelong Clients are emotional and are not wired to objectively view and handle market volatility Financial plans change based on personal and professional events: Marriage Having children Start/Sell a Business Sending children to college Starting a new job 36

37 WIPFLI HEWINS AT A GLANCE Personal Regional Service Serving Over 1,600 Clients Across the U.S. Approximately $3.83 Billion in Assets Registered Investment Advisor (RIA) All Company Information as of 12/31/2015 Nationally-recognized Subject Matter Experts Our Offices San Francisco Redwood City Minneapolis Madison Milwaukee Green Bay Appleton Wausau Chicago Rockford Westchester Kansas City Miami Media Our Affiliate Offices St. Paul Duluth Eau Claire La Crosse Philadelphia North Palm Beach hewinsfinancial.com wipflihewins.com 37

38 CPA- BASED PRIVATE CLIENT SERVICES TAX & ACCOUNTING Annual Tax Planning Personal Tax Return Preparation Gift and Estate Tax Return Preparation FINANCIAL PLANNING & INVESTMENTS Strategic and Interactive Financial Planning Wealth Transfer Planning Cash Flow Management Insurance Consulting Investment Advisory Services Tax preparation services provided by Wipfli LLP. Financial planning and investment advisory services provided by Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors. Separate services may require separate obligations and fees. Insurance consulting services are provided by a state-licensed insurance agent affiliated with Hewins Financial Advisors, LLC. 38

39 INVESTMENT PHILOSOPHY Research-Driven We focus on applying academic, Nobel Prize winning research to investing. 1 Low-Cost Our low-cost equity portfolios operate at an average expense ratio more than 4 times less than the average of its peers. 2 Diversified Reduce your level of risk when investing with a broadly diversified portfolio. Tax-Efficient Effective asset location, tax-loss harvesting strategies, and a lowturnover approach. 1 Eugene F. Fama - Facts, NobelPrize.org. Nobel Media AB Web. 18 Aug Methodology: The average of its peers is calculated by taking the average 2015 OER for each Morningstar category represented in the Hewins 100% Equity portfolio and weights according to the Hewins allocation to each asset class 39

40 OUR RECOGNITION Leading CPA- Based Firm Ranked #7 in Accounting Today's "Wealth Magnets" list for Accounting Today ranked #7 Wealth Magnet based on assets under management. Past Performance is not indicative of future results and all client experiences may materially differ. For further award disclosures go to 40

41 OUR RECOGNITION Ranked within the Top 50 firms in Forbes' "Top 100 Wealth Managers" for 2015 Ranked within the Top 30 firms in REP. magazine & WealthManagement.com s list of Top 100 RIAs for 2014 Named one of Inc. s 5,000 Fastest-Growing Private U.S. Companies for 2014 & 2015 Named to Financial Advisor magazine s 2015 RIA Ranking, based on total assets under management 1 Forbes ranked #48 Top Wealth Manager based on assets under management. 2 REP./WealthManagement.com ranked #26 Top RIA based on assets under management. 3 Inc Fastest-Growing Private U.S. Companies, 2015," Inc. Magazine, August 2015, accessed August Financial Advisor ranked #58 of 2015 Top 100 RIAs based on 2014 year end total assets. 41

42 OUR CORE VALUES 42

43 FINAL THOUGHTS QUESTIONS? 43

44 CONTACT INFORMATION Lora Murphy, CPA, CFP, CDFA Senior Financial Advisor Wipfli Hewins Investment Advisors Ryan McGuire, CFP Financial Advisor Wipfli Hewins Investment Advisors Associate Lecturer University of Wisconsin-Madison Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors (Hewins) is a proud affiliate of Wipfli LLP. Hewins is an SEC-registered investment advisor and its ADV Part 2A discussing its services and fees is available upon request or at 44