SPONSORED CONTENT -- (StatePoint) Financial missteps can have devastating consequences for individuals and families.
As an advisor with CERTIFIED FINANCIAL PLANNER® certification, here are three common financial pitfalls you can help your clients avoid:
Bad online advice: A recent CFP Board survey finds that 3 out of 4 Americans seek out financial information online at least once a month. Unfortunately, a lot of this information is misleading, incorrect and even harmful. The survey uncovered that 39% of Americans have lost $250 or more because of bad advice, and 18% have suffered losses over $1,000.
Following bad advice can have long-term consequences and disrupt financial futures. Younger generations are particularly likely to view social media, podcasts and generative artificial intelligence (AI) as a reliable source of financial information. Nearly half of Americans aged 25-45 (48%) believe online financial content serves their best interests, almost double the rate of those aged 46-64 (25%). As a CFP® professional, you can provide clients with sound, trusted financial advice and help them sort fact from fiction online and elsewhere.
Family conflicts over money: Americans working with a CFP® professional have fewer financial-related conflicts with family members, according to CFP Board’s “Financial Planning Longitudinal Study.” The study suggests many potential reasons for this. One is that CFP® professionals are more likely to learn about their clients’ family values and their spouses’ relationship to finances. This approach helps align individuals’ financial plans with the plans of the people that matter to them. Another reason relates to estate planning. Close to 3 in 5 Americans advised by a CFP® professional have a will, compared to 49% of people who work with a financial advisor without CFP® certification and 25% of those who are unadvised. Ensuring that an individual’s financial affairs are in order is a critical way to keep the peace among family members after the individual passes away.
Letting financial anxiety take over one’s life: Money is a source of ever-present stress and anxiety for many, particularly those who tend to wing it when it comes to financial decisions. You can help your clients break this cycle with a detailed, holistic financial plan that accounts for everything from emergency funds and monthly budgets to long-term goals. CFP Board research finds that consumers advised by CFP® professionals are more likely to have detailed plans around their retirement, investments, insurance and more, and they are also more likely to review these plans frequently. Given this attention to detail, it’s no surprise that more clients of CFP® professionals report living comfortably than people who work with other financial advisors or who are unadvised.
Financial advisors with CFP® certification have been proven to help their clients avoid common financial mistakes and have a healthier relationship with money. To get started on the CFP® certification journey, visit CFP.net.
With so many financial traps and pitfalls impacting American consumers, be sure to get the training you need to better serve clients.
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