CFP value?

[dallas27]

Has anyone here ever pursued a CFP AFTER self educating on LBYM/FIRE? I wonder if there is additional "retirement alpha" to be gained by looking into the materials and studying.

Its just the kind of weird thing I would think about doing.

[Scuba]

I wonder about that too. I think there could be some value in it. Just not sure I want to spend the time/effort on it.

[ERD50]

Good question. In general, assuming you have nothing complicated/out-of-the-ordinary in your investments or needs, it seems like this forum and resources at Bogleheads cover everything pretty well. I'm not sure what a CFP could tell us.

But then again, maybe I don't know what I don't know. Maybe someone will chime in with their experiences, positive and/or negative. I guess it could even be worth it for 'peace of mind' - as in "the pro told me I wasn't missing anything big".

EDIT: And just to be crystal clear here, this is a discussion about hiring a CFP (fiduciary) for X hours to review our situation. Not an ongoing fee based on some % AUM. Looks like I was wrong, see my recent post - OP was looking to obtain a CFP certification for themselves?

-ERD50

[samclem]

I'd think that self-study of the applicable information would get you a lot more return on the time and money invested. Much of the CFP certification curriculum surely involves compliance issues, government regulations that CFPs must adhere to, study of very niche financial and tax situations that have nothing to do with your own situation, etc. And then there would be studying for tests and exams that you've got no interest in taking.

At most, I'd get a copy of the textbooks and course materials used and pick out the parts that are relevant. But I think I'd find that there's no more "meat" there than in well-written books and materials available to the public.

[bloom2708]

Not worth it. You know you better than any CFP could. I agree that here + Bogleheads can give you confidence for most financial issue.

A good tax attorney or accountant might be another topic if you are dealing with a large estate with inherited items.

[ERD50]

Ooops, I misunderstood the OP.

I took " pursue a CFP" as looking into hiring one, not obtaining the certification yourself.

Easy answer. No, I don't think the value would be worth the effort.

-ERD50

[bingybear]

To get a CFP requires a number of years working in the financial advising industry in addition to taking classes and passing tests.
I would not think that it would be worth getting the CFP if you are not planning to use it in the line of work. Now if you want to take a class from that program to improve your knowledge... then yes, take a class.

I think it requires 3 years qualified experience in the industry. After meeting the educational requirements and testing you pay dues each year to keep the credential and I'm sure ongoing education. I don't want to pay anymore dues to manage my investments.

[dallas27]

And just to add to my first post... I've been formally studying finance/econ in the evenings at university specific to being a better investor and supporting my FIRE decisions. That has been immensely useful to me, thought I will say most of what I learned just reinforced the basic principle we all profess already. The education just really opened my eyes to whats under the hood and how it all really works. The only investment change I have made as a result of my studying was tripling my EM allocation to represent ~25% of my portfolio.

All that just to give context about where the question is coming from... CFP would be next level for me, but I agree it doesn't seem worth it.

[Big_Hitter]

there is a lot of good material on the cfp syllabus - like others have said, it may make sense for you to study the material and take some practice exams

as far as getting the credential, the big drawback is that you have to work as someone's flunkie for 3 years, not worth it IMO

i was considering getting one as i am exempt from about half of the syllabus but I decided against it. i'd rather play golf

if you live in dallas a guy i used to work with now has a cfp practice there; you could reach out to him and see what he thinks. he's a nice guy

[ERD50]

Quote:

Originally Posted by Big_Hitter .... as far as getting the credential, the big drawback is that you have to work as someone's flunkie for 3 years, not worth it IMO ...

This reminds me of a recent Dilbert cartoon. Dilbert asks his co-worker "If you made a Billion dollars, would you quit work?".

The co-worker: "How would I make a Billion dollars?"

Dilbert: "You'd have to work for it."

Co-worker: "That kind of defeats the purpose."



-ERD50

[ronin]

I think the CFP mark would be worthwhile if one was planning a career in personal finance. It has its pluses and minuses. For the retiree wanting that "retirement alpha", I don't think achieving the designation is worth much.

Personally, I went through the Personal Financial Planning Program with the University of California which is somewhat more rigorous than the just the minimum CFP curriculum (of which is a part of and the main thrust of the Program). I chose to accept certification from the University and not sit for the exam as I would never complete the work experience, pay the annual fees and submit to the FP Boards oversight and control.

I thought it was very worthwhile although fairly expensive. Compared to the cost of retaining an advisor on AUM or some such for the rest of my life, a bargain. I learned a ton and set out to create a sort of "extended family" office which is offered pro bono to many of our relatives and close friends. This has become what I guess you might loosely call a spiritual service as it is given away with nothing expected in return.

It's certainly true that many can learn enough on their own to manage their affairs given the time, interest and willingness to expend the effort. I can say that old saw,"you don't know what you don't know", applies in some cases.