CERTIFIED FINANCIAL PLANNER® professionals is a sponsor of "Good Morning America."
October is National Financial Planning Month, and there's never been a better time for Americans to take control of their financial future.
To help you do that, "GMA" spoke with CFP Board Chair Liz Miller, CFP®.
"Americans are bombarded with financial advice from countless online sources," Miller said. "However, much of it is misleading and is costing them dearly. That's why holistic financial planning with the help of a professional is essential."
In addition to selecting the correct person to help you achieve your financial goals, Miller and CFP® professionals have offered up plenty of tips for getting on track to your healthiest spending and saving yet for October.
Find your CFP® professional at LetsMakeAPlan.org.
Whether you want to save a $1,000 emergency fund or review your 401(k), select one achievable goal and take the steps to achieve it. This can be as ambitious as setting aside an allotted amount of money from each paycheck or even simply scheduling time to review your accounts with your spouse.
Use National Financial Planning Month as a family learning opportunity with age-appropriate money lessons for your kids.
By ages 3 to 5, kids can grasp the concepts that money is needed in order to buy things, you have to work to earn it and sometimes, you have to wait to have enough money to buy what you want. Once they hit 6 to 10, their understanding expands to include the differences between wants and needs, the possibility of running out of money and that comparing prices can help them save.
Eleven to 13 is a good age to start teaching kids to save 10% of what they earn, as well as explaining that credit cards are loans. They can also learn that saving money early helps compound interest. By 14 to 18, teens should learn to avoid credit card debt by paying off balances each month, understanding taxes and what they fund, building an emergency fund, and they can potentially explore basic investing concepts like opening a Roth IRA.
Reinforce these lessons with real-world experience: Compare prices while grocery shopping, explain the tradeoffs of spending vs. saving, and consider giving them an allowance to teach them how to manage their own money responsibly.
Much like an annual physical exam, you should take the time to check in with your finances on a personal and professional level.
A financial checkup should cover all the core areas of your financial life -- income, expenses and savings rate -- as well as a review of whether your money is working as efficiently as possible for your goals. It should also include a look at your insurance coverage to be sure you and your family are adequately protected and a brief check-in on your tax situation to identify changes or opportunities.
This is also the right time to review your investment allocation and performance to make sure your portfolio stays aligned with your risk tolerance and objectives. Partnering with a CFP® professional for this process ensures that these pieces aren't looked at in isolation but instead are integrated into a comprehensive financial plan that reflects your current needs and long-term goals.
And while an annual check-in is better than none at all, you should also consider doing this twice a year or quarterly to catch small issues before they snowball into something bigger. Life changes quickly -- new jobs, big purchases and unexpected expenses pop up -- but checking in regularly with a CFP® professional means having an expert keeping watch, helping you adjust in real time and ensuring your plan stays on track, no matter what changes come your way. This can give you confidence and peace of mind year-round.
You can prevent getting scammed by skipping "get rich quick" schemes, ensuring your financial planner has the proper certifications and avoiding one-size-fits-all advice.
If someone is promising you outsized rewards with little to no risk, you should be wary since these ignore basic investment principles and point to a scheme. Self-described experts without credentials are a huge red flag. Always look for legitimate certifications like the CFP® mark to confirm expertise.
High-pressure tactics should also set off warning bells, as should personal anecdotes and viral trends that ignore tried and true methods for gaining financial stability.
Start by gathering all your financial documents and setting specific goals before developing a budget, partnering with a CFP® professional to create a comprehensive roadmap for your financial future.
Ahead of your first meeting, prepare by putting together your goals and the financial documents that will give them a complete picture of your situation. Key items include your most recent federal and state tax returns (ideally the last three years), recent pay stubs and your Social Security statement, as well as a monthly budget or bank/credit card statements that reflect your spending habits. You'll also want to bring current statements for all savings, investment and retirement accounts such as 401(k)s, IRAs, mutual funds or brokerage accounts, as well as pension estimates if you have one.
On the liabilities side, gather mortgage information, student loan balances and details on any other loans or credit card debt. Finally, round out your file with copies of life, health, homeowners, auto and other insurance policies. Having this information organized and ready allows your CFP® professional to quickly assess your full financial landscape and tailor strategies to your goals.
Gauge a potential adviser's training and credentials, as well as their willingness to act in your best interest, with a few questions.
Here are 10 smart inquiries to start:
1. What are your qualifications and credentials?
2. What services do you offer?
3. Will you have a fiduciary duty to me at all times?
4. What is your approach to financial planning?
5. What types of clients do you typically work with?
6. Will you be the only adviser working with me?
7. How will I pay for your services?
8. How much do you typically charge?
9. Do others stand to gain from the financial advice you give me?
10. Have you ever been publicly disciplined for unlawful or unethical actions?
Their answers should offer valuable insight on their trustworthiness and ability to help you manage your finances.
CFP® professionals meet rigorous qualifications, including comprehensive education and experience requirements, and are committed to upholding high ethical standards.
A CFP® professional isn't just anyone calling themselves a financial planner -- they've completed rigorous education, passed a comprehensive certification exam, gained real-world experience (minimum two years) and are committed to ongoing continuing education. On top of that, they pledge to uphold a strict Code of Ethics and act as a fiduciary, meaning they must always put your interests ahead of their own.
CFP® professionals offer more than just investment advice -- they deliver comprehensive financial planning, tailored to your entire financial situation. This includes helping you clarify goals, manage risk and cash flow, plan tax strategies, coach behavioral aspects of money decisions, and integrate all moving pieces to support both short-term and long-term objectives.
You're not just hiring a planner, you're gaining a partner and accountability coach. As one article puts it: "A CERTIFIED FINANCIAL PLANNER® professional will hold you accountable." They help break down big goals into manageable steps, regularly check in on progress and support you in staying on track.
From marriage and career shifts to unexpected events like job loss or loss of a spouse, a CFP® professional is prepared to help you anticipate, adjust and respond strategically. They also help you plan proactively for milestones like retirement or legacy planning, creating guardrails for both smooth and rough financial seasons.
Money decisions often come with emotional weight. CFP® professionals act as neutral, objective guides who can help clarify your mindset around financial choices, reduce stress, and bring clarity to emotional decisions like saving, investing and planning for family transitions.
Beyond technical expertise, CFP® professionals help you see the big picture, stay accountable to your goals and adapt to life's changes from career moves and family milestones to retirement and estate planning. They serve as objective partners who not only create personalized strategies but also reduce the stress of financial decision-making.
With a CFP® professional, you gain clarity, confidence and a trusted guide for today and the future.
