This year the Certified Financial Planner Standards Board will prioritize financial education and the search for new talent, says new board chairman Kamila Elliott.
Many people who become CFP professionals do so after working in a registered investment advisory firm or in corporate positions, but the CFP board wants to “deepen” via outreach to high schools and colleges , according to Elliott.
“People often say, ‘I want to be a lawyer’ or ‘I want to be a CPA.’ One day they’ll say, “I want to be a professional CFP. It’s something that parents will encourage their children to pursue as a profession,” Elliott said.
The impending retirement of many CFP professionals is a key factor in the need to find new talent, according to Elliott. She cited data from the Bureau of Labor Statistics that employment of personal financial advisors is expected to increase by 5% from 2020 to 2030, and that approximately 21,500 openings of personal financial advisors are expected each year on average over the decade.
“Our profession is aging, so we absolutely need to create that pool of talent to be able to take the reins,” she said.
Additionally, the CFP board will host “high-level financial literacy sessions” at high schools and colleges on topics like bank accounts, stocks and bonds to pique student interest, Elliott said. .
These efforts will be particularly focused on people of color, with the CFP Board seeking to partner with organizations such as Historically Black Colleges and Universities (HBCUs).
Elliott, who took up her new role on Jan. 1, is the first African-American chair of the CFP’s board of directors, the organization said. She is also the president and partner of a registered investment advisory firm based in Washington, D.C. Network 202 Partners, said the CFP council.
“I hope young people of color, those like me who didn’t come from a silver spoon, will see that this is a career they can aspire to and achieve,” Elliott said.
The CFP Board will also conduct research into the differences in financial outcomes between those who work with a professional and those who don’t, according to Elliott, who says sites like E*Commerce encourage people to take charge of their investments.
“They think the only thing a finance professional or CFP does is trade ETFs and stocks, but we do so much more,” Elliott said.
Demonstrating the benefits of working with a CFP professional is especially important for people of color because they have a persistent wealth gap, according to Elliott.
“For communities of color, having a financial planner or professional CFP is even more meaningful because they’re starting from behind,” Elliott said.
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