There is a lot of material to cover on this exam!

I’ve been studying diligently and doing well on my quiz and test. Unfortunately, I haven’t been able to post as much as I thought I would. I am trying to avoid posting large amounts of information that is irrelevant to someone studying. So, for now, I am trying to decide on what I want to do with the website. I am considering having it focus more on personal finances and related topics versus specifics on what will be covered on the CFP exam. Anyway, let me know if you have any suggestions.

A great mnemonic for knowing the 7 Ethics Principles as described by the CFP Board is:

I Can Obtain CFP Designation

Each letter represents one of the principles.

A CFP Board designee shall offer and provide professional services with integrity.

A CFP Board designee shall be objective in providing professional services to clients.

A CFP Board designee shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the CFP Board designee is engaged.

A CFP Board designee shall perform professional services in a manner that is fair and reasonable to clients, principals, partners and employers, and shall disclose conflict(s) of interest in providing such services.

A CFP Board designee shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal process, to defend against charges of wrongdoing by the CFP Board designee or in connection with a civil dispute between the CFP Board designee and client.

A CFP Board designee’s conduct in all matters shall reflect credit upon the profession.

A CFP Board designee shall act diligently in providing professional services.

The above descriptions are as described on the CFP Board website.

As a benchmark for financial planning it is recommend that two key ratios are used to determine whether or not a home is affordable. I must reiterate that these are only benchmarks. The circumstances of the clients always take primary consideration. Overall, however, the ratios should not exceed these maximum percentages. The two ratios are:

Housing Ratio 1 (Basic or Front-end)

and

Housing Ratio 2 (Broad or Back-end)

For those of you looking to fine tune your skills with the HP 17BII+, HP 10BII and HP 12C financial calculators, in addition to reading through the Financial Calculator Essentials workbook, I highly recommend using a tool provided on the HP website. Specific instructions are provided on using basic and complex functions of the calculator such  as addition, subtraction, multiplications, division, powers, time value of money, etc.

Although I’ve been using a financial calculator (the TI BA II+), I am having to learn the HP calculator (I recently purchased the HP 10BII). I can manage with the BA II+, but I thought it would be helpful for the CFP program I am going through to use the calculator that the instructors uses.

I hope you find these resources useful!

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As I read through StrengthsFinders 2.0 [Affiliate Link], I found this book to be exactly what I am looking for. It’s always been a challenge to identify my strengths. It’s been so easy to second guess myself and doubt my ability. Tom Rath, author of StrengthsFinder 2.0 and motivated by the late Father of Strengths Psychology, Donald O. Clifton, shares some great insights that have help me discover and describe my talents. When I have found myself the most engaged in my job or any task I am attempted to complete is when I have the opportunities to use my strengths. Prior to reading the book, this principle made sense for activities I enjoy or am familiar with, but now I realize its application in new areas or areas where I want to develop myself. Based on my assessment, my strengths are as follows:

• Learner
• Input
• Analytical
• Responsibility
• Relator

I am one month away from starting the CFP certification program. I’m very excited about what is to come. I love learning and most importantly applying what I learn to help others. Oftentimes, help is exactly what customers are looking for. It takes time and patience to understand all of the nuances of choosing one investment strategy over another or focusing on one area over another. Help comes in many forms: blog post, one on one conversations, seminars, webinars, classroom teaching, coaching and the like. Napoleon Hill said:

It is literally true that you can succeed best and quickest by helping others to succeed.

My wife started a therapy practice and we had a discussion about target customers. Fun topic and had me thinking about how I will build my financial planning business around a target customer. Identifying a target customer profile is one of the fundamentals necessary for any business.

Oftentimes, I hear great questions on podcast that cause me to ponder on important issues in my life. Issues dealing with my finances, my relationships, my faith and my vocation. I thought I’d share  a few recent questions from the podcast I listen to. Hopefully this is beneficial for you. Leave a comment answering or commenting on the questions. Thanks…

STORY: Some NBA players planned ahead for lengthy lockout

I read a great article, linked above, that discusses the reach of wise financial planning. Oftentimes, it is assumed that athletes have little or no financial worries, but the recent rumblings surrounding trade agreements and lockout talks have dispelled this myth. Interestingly, every individual or organization is bound by the same financial principles, even Congress. Setting aside money, no matter how high your income, as always a wise move. Granted, professional athletes deal with larger dollar amounts and are more likely to purchase luxury  items, but this is all the more reason to plan for lockouts or changes in contracts that have a negative impact on income. I imagine that even Warren Buffet has money set aside for emergencies. In thinking about  emergency funds, I thought about what the key factors are to make an emergency fund work.

It is very easy to find a financial plan online. A simple google search will come up with several formal plans that have been tried and tested by millions of people. An example is Dave Ramsey’s Financial Peace University that many individuals and families have used to build an emergency fund, cut expenses, pay down debt and invest for the future. However, like all plans, it is only a format to that needs to be followed. From time to time I give financial advice to friends and family and I find that it is only helpful in so far as it is applied. My wife and I are working through our Baby Steps as part of our Total Money Makeover  and honestly we get off track sometimes, particularly with entertainment expenses. So I’ve come up with a list that helps me stay on track financially.