--- title: What Is a Certified Financial Planner (CFP®) And What Do They Do? description: If you’re looking for advice on planning for retirement or developing an investment strategy, consider working with a Certified Financial Planner™. image: https://www.realized1031.com/hubfs/what%20is%20a%20CFP%20and%20what%20do%20they%20do%3F-1367507376.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What Is a Certified Financial Planner (CFP®) And What Do They Do? Posted Jun 5, 2022 ![what is a CFP and what do they do?-1367507376](https://www.realized1031.com/hs-fs/hubfs/what%20is%20a%20CFP%20and%20what%20do%20they%20do%3F-1367507376.jpg?width=750&height=392&name=what%20is%20a%20CFP%20and%20what%20do%20they%20do%3F-1367507376.jpg) Investors may look to financial advisors to help manage their accounts and offer professional advice. Depending on your needs, you may want an opinion on a new real estate investment opportunity or how to plan for retirement. Working with a Certified Financial Planner™ (CFP®) can give you confidence that the information you receive is in your best interest. ### What Is a Certified Financial Planner? A Certified Financial Planner™ (CFP®) is a [financial advisor](https://www.realized1031.com/glossary/financial-advisor) who has successfully completed coursework and passed the certification exam following years of financial experience. The [CFP Board requires specific coursework](https://www.cfp.net/get-certified/certification-process/education-requirement/certification-coursework-requirement/what-youll-learn) that covers: -   Regulations and professional conduct -   Insurance planning and risk management -   Principles of financial planning -   Investing and tax planning -   Retirement savings -   Estate planning To gain certification, prospective CFPs® must complete at least [4,000 hours of apprenticeship](https://www.cfp.net/get-certified/certification-process) or 6,000 hours worth of financial planning experience. They also have to sign and comply with an ethics declaration and pass a background check. CFP® professionals have made a commitment to [acting as a fiduciary](https://www.investopedia.com/terms/f/fiduciary.asp), meaning they look out for the best interests of their clients instead of their own bottom line. ### What Certified Financial Planners™ Do Certified financial planners™ help people manage their finances and investments. This can include educating clients on their options, helping them plan for retirement, developing an investing strategy, helping reduce their tax liability, and managing against risks. Your CFP® evaluates your financial situation to determine your net worth. Your net worth is the value of [all your assets](https://www.realized1031.com/glossary/asset), including your property and any investments. They also note any debt liabilities, like mortgages, credit card debt, and student loans. The CFP® needs to understand your assets and liabilities to develop your financial plan. For investment or retirement planning, your CFP® will ask you about specific financial goals and your risk tolerance. Clients closer to retirement have different needs and risk tolerance than younger clients. A CFP® can develop a financial plan that seeks to ensure you have enough assets to see you through your retirement. They can also help you open a college savings plan if you want to invest in your children’s future. Your CFP® can guide you through investment options and teach you about opportunities you are unfamiliar with, like a [real estate investment trust](https://www.realized1031.com/glossary/real-estate-investment-trust-reit) (REIT). They can help you manage your investment accounts in an effort to minimize your tax liability and maximize your profits. A Certified Financial Planner™ can also offer advice on everyday finances. They can help you plan for a specific financial goal, like owning a home or saving for a wedding. Some CFPs® work with particular clients, like small businesses, high-wealth individuals, or retirees. Others are experienced in specific financial planning fields like investing, tax planning, or post-divorce planning. ### How Is a CFP® Different from a Financial Advisor? A Certified Financial Planner™ is one type of financial advisor. Since they must go through a certification process that requires education and testing, they may have more in-depth knowledge about many financial planning subjects. Some financial advisors are only asked to follow a suitability standard. Meaning, that as long as the investment is suitable, they could be offering advice that benefits them instead of you. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. Learn Ways To Help Build Long-Term Real Estate Wealth [![Get Tips For Managing Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-250c.jpg?width=250&height=250&name=IPWM-eBook-250c.jpg "Learn new ways to use real ...") ](https://www.realized1031.com/blog/what-is-a-certified-financial-planner-cfp-and-what-do-they-do#blogform) Download eBook ---   --- ### Get Tips For Managing Real Estate Wealth ![Learn Ways To Help Build Long-Term Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-550.jpg?width=550&height=650&name=IPWM-eBook-550.jpg) Learn new ways to use real estate to pursue your wealth goals. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Investors may look to financial advisors to help manage their accounts and offer professional advice. Depending on your needs, you may want an opinion on a new real estate investment opportunity or how to plan for retirement. Working with a Certified Financial Planner™ (CFP®) can give you confidence that the information you receive is in your best interest. What Is a Certified Financial Planner? A Certified Financial Planner™ (CFP®) is a financial advisor who has successfully completed coursework and passed the certification exam following years of financial experience. The CFP Board requires specific coursework that covers: Regulations and professional conduct Insurance planning and risk management Principles of financial planning Investing and tax planning Retirement savings Estate planning To gain certification, prospective CFPs® must complete at least 4,000 hours of apprenticeship or 6,000 hours worth of financial planning experience. They also have to sign and comply with an ethics declaration and pass a background check. CFP® professionals have made a commitment to acting as a fiduciary, meaning they look out for the best interests of their clients instead of their own bottom line. What Certified Financial Planners™ Do Certified financial planners™ help people manage their finances and investments. This can include educating clients on their options, helping them plan for retirement, developing an investing strategy, helping reduce their tax liability, and managing against risks. Your CFP® evaluates your financial situation to determine your net worth. Your net worth is the value of all your assets, including your property and any investments. They also note any debt liabilities, like mortgages, credit card debt, and student loans. The CFP® needs to understand your assets and liabilities to develop your financial plan. For investment or retirement planning, your CFP® will ask you about specific financial goals and your risk tolerance. Clients closer to retirement have different needs and risk tolerance than younger clients. A CFP® can develop a financial plan that seeks to ensure you have enough assets to see you through your retirement. They can also help you open a college savings plan if you want to invest in your children’s future. Your CFP® can guide you through investment options and teach you about opportunities you are unfamiliar with, like a real estate investment trust (REIT). They can help you manage your investment accounts in an effort to minimize your tax liability and maximize your profits. A Certified Financial Planner™ can also offer advice on everyday finances. They can help you plan for a specific financial goal, like owning a home or saving for a wedding. Some CFPs® work with particular clients, like small businesses, high-wealth individuals, or retirees. Others are experienced in specific financial planning fields like investing, tax planning, or post-divorce planning. How Is a CFP® Different from a Financial Advisor? A Certified Financial Planner™ is one type of financial advisor. Since they must go through a certification process that requires education and testing, they may have more in-depth knowledge about many financial planning subjects. Some financial advisors are only asked to follow a suitability standard. Meaning, that as long as the investment is suitable, they could be offering advice that benefits them instead of you. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.", "articleSection" : [ "Financial Planning" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2022-06-05T16:00:00+0000", "datePublished" : "2022-06-05T16:00:00+0000", "description" : " If you’re looking for advice on planning for retirement or developing an investment strategy, consider working with a Certified Financial Planner™.\n", "headline" : "What Is a Certified Financial Planner (CFP®) And What Do They Do?", "image" : { "@type" : "ImageObject", "height" : 392, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/what%20is%20a%20CFP%20and%20what%20do%20they%20do%3F-1367507376.jpg", "width" : 750 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/what-is-a-certified-financial-planner-cfp-and-what-do-they-do", "name" : "What Is a Certified Financial Planner (CFP®) And What Do They Do?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/what%20is%20a%20CFP%20and%20what%20do%20they%20do%3F-1367507376.jpg" } ```