Approximately every five years, CFP Board conducts a Practice Analysis Study — the largest research project in the U.S. related to the body of knowledge for financial planning. The study establishes the Principal Knowledge Topics that define the content of the CFP® certification requirements. The Psychology of Financial Planning is the eighth Principal Knowledge Domain.
CFP® professionals can leverage the book to improve their own practices, and candidates for CFP® certification will benefit from a deeper understanding of a domain that has been added to those covered by Registered Programs, assessed on the CFP® exam and accepted for Continuing Education credit.
“It is paramount that the requirements to earn CFP® certification accurately reflect the demands of current practice. The Psychology of Financial Planning is a critical addition to the Principal Knowledge Domains,” said CFP Board CEO Kevin R. Keller, CAE. “We hope that CFP® professionals and those pursuing their CFP® marks will find this new resource helpful, and we are grateful to the contributors and members of the Editorial Advisory Board for their important work.”
In addition to technical skill, effective client communication requires mastery of Psychology of Financial Planning, (i.e., “identifying and responding to attitudes, behaviors and situations that impact decision-making, the client-planner relationship and the client’s financial well-being.”) The six parts of the book dive into the Principal Knowledge Topics that make up the new Principal Knowledge Domain, including client and planner attitudes, values and biases, behavioral finance, sources of money conflict, principles of counseling, general principles of effective communication and crisis events with severe consequences. The sections also cover practical applications of each, such as navigating a client’s risk tolerance and helping couples and families achieve greater financial transparency.
The e-book is available now, and pre-orders for the printed version and bundled offers can be purchased at a discounted 30-day introductory price on CFP Board’s website at CFP.net/Psychology-of-Financial-Planning. The print version will be released on June 8, 2022. Bulk pricing is available for Registered Programs to complement education coursework and for financial services firms to educate their financial planning workforce.
The practitioner and academic contributors include Saundra M. Davis, MSFP, APFC®, FBS®; Rick Kahler, M.S., CFP®, CFT-I™, CeFT®; Emily Koochel, Ph.D., AFC®, CFT-I™; <…….