Five things you don’t know about financial planners

Despite the prestige that my profession brings, I still get questions like “Dana Ray Reynolds, what exactly do financial planners do?” Honestly, I am perplexed when I get that kind of inquiry. Financial planning is a booming career, and financial planners are everywhere. How can people not know what we do?

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But if you’re one those people who don’t really have an idea about the work that financial planners do, don’t fret. I can compose myself and tell you the basics:  

1. We specialize. Some of us can recommend a limited range of investments, while others can assess all aspects of your finances. Some excel in real estate planning, while others work best in debt management.  

2. We charge differently. We can ask for a fixed payment for developing your financial plan, or we can ask commissions from your products that we help sell.  

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3. We come from different backgrounds. Our profession does not require a specific college degree. Most of us, however, have a degree in accounting or business administration—two fields that essentially deal with finances.  

4. Most of us have CFP credentials. We are labeled as Certified Financial Planners only after meeting the requirements set by the Certified Financial Planner Board of Standards. The certification is proof of our expertise.  

Image Source: cfp.net

5. The best among us are fiduciaries. The Fiduciary Oath is our vow to work in the best interest of our clients, even if this wouldn’t be profitable for us. Planners who only care about investments and do not assess their clients’ overall situation may not be considered as fiduciaries.

These are just some of the basic things about financial planners. The role that we play in managing your money, especially in times of crisis, could become way more complicated depending on a client’s financial situation.  


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