CFP: The challenges, and the opportunities

Certified Financial Planner is the latest kid on the block, as far as the field of personal finance goes. Previously, disparate professsionals / non-professionals used to take care of an individual's financial needs. A CFP is an addition to the crowd, and offers a repackaged bunch of same ol' services, under a single roof.

As we now know, the financial services industry is undergoing a turmoil the world over, and hence the financial services firms have turned into reluctant and stingy employers. Job, as an option, hence is not as attractive as one would have expected. Hence, if one has to make the most of the 95 grands (could be less for others) spent on the Education Provider, without joining those very EPs as trainers, then to start on one's own is the best option available.

The challenges for a practicing CFP as I could comprehend, are manifold.

Today, CFPs are trying to create their own space in the mad, mad world of financial services. The old professionals or non-professionals are still there, and haven't faded away, as one would have expected them to. On the other hand, one keeps hearing rumours about some brokerage bringing some new course from abroad, in competition to CFP course. CFPs will have to get through this phase of intense competition and make their mark.

I am enlisting the present and prospective competitors that CFPs have in different modules of Financial Planning.

1) Insurance Planning: The regular insurance agents, are the most formidable competition.

2) Retirement Planning: Again, agents and distributors attached to big financial institutions take away most of the market share.

3) Investment Planning: Brokers and sub brokers, who double up as investment advisors and shell out free tips to their clients, who happily lap up whatever comes their way for free.

4) Tax Planning: Tax Consultants, CAs, many new websites giving taxpayers an option to file taxes online, the employers of many salaried, who file returns on their employee's behalf, and many other Toms, Dicks and Harrys who write the return, and file it, as it does not require a Chartered Accountant's signature.

These are the challenges that a CFP must overcome. Next time around let's discuss how we CFPs can overcome them.