Why I'll never call financial planning an industry

Words matter. Although "industry" and "profession" are sometimes used interchangeably to describe financial planning, they are not synonymous. 

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Referring to financial planning as an industry misses the essence of this important work; it mischaracterizes our mandate. Financial planning isn't just a business. It is a true profession. Hallmarks of a profession include specialized knowledge and training, formal standards and commitment to public service.

Financial planning certainly checks each of those boxes, and I imagine those reading this are likely nodding in agreement. I see financial planning standing alongside other respected and important professions — such as medicine, law and engineering — that combine technical expertise with human judgment and public trust. 

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Depth of knowledge and training

This comparison isn't aspirational but backed by a rigorous baseline and high bars for technical mastery. For those pursuing CFP certification, the educational path includes completing CFP Board-approved coursework covering major areas of personal financial planning from investments to estate planning and from regulation to the psychology of financial planning.

That work is currently paired with a required bachelor's degree from an accredited college or university. This standard reflects an important principle: Financial planners should bring both specialized training and broader academic preparation to their work. 

After all, a planner's ability to think outside of the box and reexamine conventional wisdom benefits their clients who don't fit textbook definitions. 

And the learning doesn't stop once the marks are earned. 

CFP professionals must complete 30 hours of continuing education every two years, including two hours of CFP Board-approved ethics education and 28 hours covering principal financial planning topics. That requirement exists for a reason. Clients live in a world shaped by changing tax rules, new products, evolving technology and shifting market conditions. They deserve guidance from professionals who are committed to lifelong learning and staying up to date.

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High expectations and high standards

Professions rely on standards that make expectations clear, consistent and enforceable. In financial planning, those standards are crucial because clients often must make financial decisions in moments of uncertainty.

Whether a client is preparing for retirement, navigating a divorce, selling a business, caring for aging parents or recovering from a financial setback, such moments require deep trust in their planner. Conversations around these topics and other important decisions have real consequences. When trust exists, clients feel able to truly open up to financial planners, enabling strong conversations and the best possible decisions.  

Certified financial planners operate under the fiduciary standard. A profession earns trust when it places the client's interest above the professional's and makes that expectation part of its formal structure. The fiduciary standard distinguishes professional advice and reinforces that financial planning is built on responsibility.

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A commitment to public service

At its core, financial planning is a mission-driven vocation. One of the reasons I chose this great profession is because it provides so many opportunities to positively impact the lives of others.

People don't seek out planners merely for spreadsheets or investment models. They seek clarity, reassurance, discipline and guidance to achieve their financial goals. It's a relationship. It's about the human connection. While technical knowledge matters, the purpose of financial planning is to serve others, to help people make decisions that support their lives, families and ambitions.

Some financial planners take that a step further by providing pro bono financial planning, which is a hallmark offering at the Financial Planning Association. Planners' sense of duty is visible in how many of them give back via pro bono work — more than 30,000, according to the Foundation for Financial Planning. 

The profession's commitment to ethics and competence creates a foundation for service that extends beyond planners' clients and into communities where financial guidance can be life-changing. These selfless individuals volunteer their time with people in financial crises or who otherwise need assistance they cannot afford. Like the medical profession's mission trips, pro bono financial planning opportunities exist across the country through FPA's network of local chapters. When planners use their training to help people facing hardship or uncertainty, they demonstrate the best of what the profession represents.

Financial planning asks something serious of those who enter it. It requires education, continued growth, adherence to formal standards and a genuine commitment to serving others. I'm proud to be part of that profession — and proud to do my best to move it forward.