“Is CFP profession meant for me?” – A query by an IFA By Ninad Mondkar

I am a CFPCM professional & I train students & professionals, alike, for the

CFPCM certification program. It’s quite evident that, most students, pursue the

program to make a career in the personal finance space. However, there are many

professionals (read:- Independent Financial Advisors (IFAs)) who seem oblivious

to the growing awareness/need to have a qualified professional planner. The one

question that’s been asked to me often is, “Why should I pursue the

CFPCM certification program? How’s it going to benefit me? Is it meant for me?

etc”

Although, the answer to this question seem obvious to me & to many others, who

are practicing as financial planners, I thought of penning down my views as to why

an IFA should contemplate upgrading himself with a CFPCM certification:-

1) Increase in knowledge = increase in sales- Let me address this point,

with a real life example, which happened with my father recently.

We had Mr. X (don’t want to name him here) an IFA for over 20 years, come over

to our house to offer me a product “which would address my needs!” (those were

his exact words).

He was offering me a life insurance product of a reputed company (don’t want to

name the company either) & his sales pitch worked something like this, “Mr. NM

(as I am known among friends) this product works wonders! All you have to do is

to invest a sum of Rs. 30,000 per annum for the next 10 years. The following 10

years you’ll receive nothing (i.e. Years 11-20, I’m not going to receive

anything) & then onwards, I’m going to receive Rs. 50,000 for the rest of my life,

till the time, either me or my wife is alive. Following our death, my child would

receive a sum of Rs. 600,000! All the sums been GUARANTEED by the insurance

company”

“Wait a second, Rs. 30,000 for 10 years (i.e. an outflow of Rs. 300,000 over a

period of 10 years) & then he & his spouse would be receiving Rs. 50,000 per

annum for the REST OF THEIR LIVES, followed by Rs. 6,00,000 to his child,

post his death! WOW, what a product!! Isn’t that amazing, NM?” was my dad’s

reply – let’s invest!

The plain looking product is really amazing, because, according to many, it

addresses all the needs, who wouldn’t like to invest in this product?? Isn’t it? Not

actually! Any financial planner, could calculate & tell you that the IRR that I earn

on this product is as less as 6% p.a. (Imagine the look on my father’s face, when he

saw the calculations!) Do you think that, it would be enough, citing my age, where

I’m more keen towards “Wealth Accumulation?”

Think for a while: - Imagine what kind of impact I have made on my father’s mind

– he trust’s my advice more than before! Now just think, from a client’s

perspective – wouldn’t a professionally qualified financial planner be able to make

an impact & win over his trust & thus be able to SELL more to his clients?

2) Who’s your “TG” (i.e. Target Group)?- I ask this question to all the

IFAs and all of them end up telling me that, their “TG” are their existing

clients (i.e. those who are in the late 40s or late 50s or at times in their

early 40s etc – someone, rightly said, your client looks exactly like you do!).

Some, tell me that their TG are the youth (the one’s in their early 20s) as

they would be investing with them for quite a while (as compared to the

individuals who are on the verge of retirement) as they are in the “Wealth

Accumulation” stage & would be investing for a better part of 40 years

before they retire! - That’s so true! Isn’t it? That’s where the market lies!!

Don’t we all want to cater to this crowd?

Now before I hear the loud “YES” coming! – Here comes the catch – “If you

intend to tap into a group of early 20ites, who were born in the day & age of

“Google” – do you think, they’ll be taking your advice plainly without

researching? There are websites like “Value Research”, “Policy Bazaar”,

“Jago Investor” etc who have thrown the financial advisory sector upside

down by their informative websites – Behold the Information age. How

would your advice/knowledge fare in front of them when they start

asking you questions?

Think for a while:- These are the guys who go to catch a movie after

checking it’s review on the internet! These are guys who go to a restaurant

after checking it’s review on Zomato! They are those “aliens” who buy a

mobile using “FlipKart” (rather than buying it from a local store) & are

more comfortable using internet banking to pay of the bills, rather than

standing in long queues!

3) CFPCM certification increases your credibility!- There isn’t a shadow

of doubt in my mind that, the CFPCM certification has helped me position myself as

an authority in the personal finance space - especially when I am communicating

with the 20ites – whom I wish to cater too! I know of

countless CFPCM practitioners who have build their reputation online by their

quality articles, knowledge of the subject matter & ability to address the queries of

their prospects to their satisfaction.

4) Times are changing, are you changing with times?- Gone are the

days, where a “financial advisor” was considered to be a person who could go

around collecting premium cheques or was an individual who couldn’t even scrape

through college! Today’s generation (I’d like to call it as “Gen-Next”) look upto a

financial advisor/planner as a professional & would like to receive the same type of

quality advice as any other professional. They aren’t apprehensive to paying (If

you know whose your TG), but, they would pay only if they are satisfied by your

body of knowledge.

Think for a while:- Whom would the youth prefer?:- A Chartered Accountant or a

plain accountant? Would they prefer to go to a MD or would they prefer to go to a

MBBS? – It’s the YOUTH that makes the difference. Are you changing with

times?

So, if you are convinced by what I said, herein above, OR if you still have queries,

which you want me to address, why don’t you fill in the form & we could catch up

to address the same.

About Ninad Mondkar

Fascinated with the growing potential and power of financial planning, "NM" is a

part of Financial Planning Academy, a CFP education institute, headquartered

Mumbai. As Sr. Trainer with the Academy, he is passionate about helping others

reach their aspirations of becoming a CFP professional through a interactive &

knowledge based training.