When someone is looking for a financial advisor, they may hear from friends, talk show hosts, or newspaper columnists recommending a NAPFA advisor. However, most people do not know what NAPFA stands for, let alone why NAPFA advisors are often recommended. As NAPFA advisors, we wanted to take this opportunity to tell you about the organization.
What is NAPFA?
NAPFA, which stands for the National Association of Personal Financial Advisors, is the country’s leading professional association of fee-only advisors. NAPFA advisors and the firms they work for cannot receive commissions or referral fees of any kind. Compensation comes solely from the client. For example, while a NAPFA advisor can assist in purchasing an annuity or life insurance policy, they cannot receive a commission for selling that product.
What Does a NAPFA Financial Advisor Do?
A NAPFA financial advisor provides personalized financial planning and investment management services with a fiduciary commitment to act in the best interests of their clients. Unlike commission-based advisors, NAPFA members operate on a fee-only basis, meaning they do not earn commissions from the sale of financial products. This model helps to establish a more transparent and trustworthy relationship between advisors and their clients.
How to Become a NAPFA Financial Advisor
To become a NAPFA member, financial advisors must meet strict educational and ethical requirements. NAPFA membership ensures that advisors stay current with financial industry regulations, best practices, and continuing education.
NAPFA Requirements
- Members must be a Certified Financial Planner (CFP®), commit to a fee-only compensation structure, and submit a sample financial plan that is reviewed by the organization for competency and comprehensiveness.
- Every year, NAPFA advisors are required to subscribe to a strict Code of Ethics and to take a Fiduciary Oath; agreeing to put the clients’ interests first, to disclose conflicts of interests, and not accept commissions of any kind.
- NAPFA advisors must complete 60 hours of continuing education every 24 months, thereby helping to ensure that members stay up to date on laws, strategies, and best practices as they relate to financial planning.
Why Choose a NAPFA Financial Advisor?
Can an advisor that receives commissions provide high-quality advice in the best interest of their clients? Yes, but the challenge for consumers is determining whether an advisor is fully committed to their best interests. NAPFA’s strict requirements allow consumers to rely on NAPFA membership as a mark of an advisor’s commitment to removing conflicts of interest and prioritizing the client’s needs.
- Fiduciary Commitment: NAPFA advisors put their clients’ interests first.
- Fee-Only Structure: Compensation comes solely from clients, helping to ensure transparency and trust.
- Strict Ethical Standards: Advisors must meet rigorous ethical requirements, including an annual Fiduciary Oath.
Our Experience as a NAPFA Advisors
At Core Wealth Management, we believe that it is of paramount importance that our interests should be aligned with those of our clients. When our clients can sleep well at night because they know that we are in their corner, looking out for their best interests, then we also succeed. Doug Marcello and Jackie Goldstick are proud to be members of NAPFA.
Contact us today to begin a conversation with one of our professional financial planners that will bring you closer to achieving your personal financial objectives.