Clients of CFP® Professionals Experience Greater Financial Confidence, Trust and Stability
CFP Board today announced results from the inaugural Financial Planning Longitudinal Study, a decade-long, academic research initiative. The initial findings reveal that Americans who work with CERTIFIED FINANCIAL PLANNER® professionals achieve significantly better financial outcomes and enjoy greater personal well-being than others.
The initial study results show that clients of CFP® professionals are more likely to have detailed, regularly reviewed financial plans, maintain emergency funds and wills, and report living comfortably than people who work with other financial advisors or are unadvised. These clients also report fewer family conflicts over money and place greater trust in their advisors.
The Financial Planning Longitudinal Study will track, follow and measure financial and overall well-being outcomes of a diverse and representative sample of American households over at least the next decade. The following team of renowned researchers in the fields of financial planning and consumer finance leads the study:
- J. Michael Collins, Ph.D., MPP, Professor at the University of Wisconsin-Madison
- Stuart J. Heckman, Ph.D., M.S., CFP®, Associate Professor of Practice and Ph.D. Program Director at Texas Tech University School of Financial Planning
- Emily Koochel, Ph.D., AFC®, CFT-I™, BFA™, Manager of Financial Wellness at eMoney Advisor
- Sonya Lutter, Ph.D., M.S., CFP®, Director of Financial Health and Wellness at Texas Tech University School of Financial Planning
“We’ve long heard stories of CFP® professionals making a real difference, and now we have the data to confirm it,” said CFP Board CEO Kevin R. Keller, CAE. “What’s even more compelling is that the study shows that Americans working with CFP® professionals enjoy better financial outcomes and greater security compared to clients of other financial advisors.”
Clients of CFP® Professionals Report Better Financial Preparedness, Higher Engagement and Lower Anxiety
The inaugural Financial Planning Longitudinal Study finds significant advantages in financial preparedness among CFP® professional-advised clients: 78% of clients advised by CFP® professionals maintain three-month emergency funds, compared to 68% of those with non-CFP® professionals and 53% of non-advised individuals.
Clients of CFP® professionals stand out in other key areas as well: 57% have a will, compared to 49% of those with non-CFP® professional advisors and 25% of non-advised individuals. They also report stronger family dynamics, with 42% experiencing fewer financial conflicts at home. Additionally, 24% of CFP® professional-advised clients feel confident managing potential unemployment.
CFP® professionals take a more comprehensive approach to financial planning, with 44% of their clients receiving plan reviews more frequently than annually — nearly double the rate of non-CFP® professional clients, at 23%. The data reveals higher client engagement across key areas: 55% of CFP® professional-advised clients have detailed retirement plans, and 52% maintain comprehensive investment strategies, versus 38% and 30%, respectively, for those with non-CFP® professional advisors. This thorough approach benefits clients, with 49% of CFP® professional clients reporting reduced financial anxiety through their advisor relationship, compared to 31% of those working with other advisors.
Financial well-being metrics show strength among CFP® professional-advised clients, with only 8% experiencing money anxiety. More than half of CFP® professional clients report “living comfortably” (51%).
“This research marks a key step in understanding the impact of professional financial planning on Americans’ futures,” said Kevin Roth, Ph.D., Managing Director of Research at CFP Board. “Our initial findings demonstrate that Americans working with CFP® professionals not only have better financial outcomes, but they also have a healthier relationship with money, from better emergency preparedness to reduced family stress.”
This first annual survey of the Financial Planning Longitudinal Study launches the research initiative to track and measure the financial outcomes of a panel of Americans over at least the next decade. The study aims to provide an empirical evaluation of the benefits of financial planning and working with CFP® professionals compared to the services of professionals who do not hold CFP® certification and those with do-it-yourself approaches.
Download and read the full Financial Planning Longitudinal Study.
METHODOLOGY
The researchers sent the study’s inaugural survey in July 2024 to targeted members of the AmeriSpeak® panel, managed by NORC at the University of Chicago. The survey generated responses from 4,027 U.S. households. Participants represented working and retired Americans ages 25-65 who serve as primary or shared financial decision-makers in their households, with a minimum annual income of $50,000 and investable assets of at least $50,000. CFP Board anticipates making the data available to other researchers in the near future.
WEBINAR TODAY
Join the research team for a webinar today (February 11, 2025) from 1:00 to 2:00 p.m. ET, where they will discuss the results and key takeaways from the inaugural survey conducted in 2024.
ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public’s benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession’s body of knowledge.
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Contacts
Joseph Feese, Director of Public Relations, P: 202-379-2305, E: media@cfpboard.org, X: @CFPBoard
