In uncertain economic times such as the present, individuals rely a lot on a Certified Financial Planner for their advice. Financial Planners are very sought-after and some even consider them as the only saviour providing reliable and genuine suggestions.

A Certified Financial Planner has to wear many hats during the term of his service. Sometimes he is an Asset Manager, sometimes he is an advisor, sometimes he is a marketing professional while sometimes he also has to become a psychologist.

It is quite challenging to fulfill each role to the fullest. There are bound to be day to day challenges that need to be overcome.

A Certified Financial Planner Faces these 5 Challenges Today


Some of the challenges faced by a Certified Financial Planner are:

  1. Understanding client psychology and their expectations:

While managing a client’s portfolio may be a very straightforward endeavour, managing their expectations can be much harder. Many clients have unrealistic expectations when it comes to investment returns and interest rates.

Client psychology plays a crucial role in understanding their inclination towards fulfilling each business goal, their risk-appetite and their openness towards various investment vehicles. Therefore it is imperative that a Financial Planner communicates well to his clients and also listens carefully.

  1. Extracting accurate information from the client

Before a Financial Planner begins his actual planning work, he requires honest details of his clients’ financial position, their financial goals and their current set of commitments. Sometimes the clients are not straightforward and do not share the exact details due to skepticism.

A Financial Planner faces the challenge of designing ways to extract this crucial information. Usually, Financial Planners design a customized template wherein the client can fill in all the details and ensures complete confidentiality. Once he has this information he can create his own database and design a well-suited plan for them.

  1. Requirement to maintain transparency in dealings

The relationship between a client and a Financial Planner is based on deep trust. It is must that the Financial Planner ensures complete transparency in his dealings. This is challenging because once the client is involved right from the design stage of the financial plan, he may interfere with the process and express his opinions without even knowing the underlying reasons.

Nowadays the millennial age is quite well-informed and would like to be involved at each stage of the planning process. Hence, it is imperative that the financial planner keeps them in loop and educates them about the logic behind the planning without letting them overpower his own reasoning.

  1.   Pressure to deliver real-time analysis:

Everyone wants up-to-date information when it comes to market volatility or economic uncertainty. There are certain investors who would always want the latest information for market analysis. Hence, Financial Planners are under constant pressure to deliver real-time analysis.

To tackle this, Financial Planners ideally keep a dashboard ready so that he can check the major developments real-time and shares the same with his clients. This dashboard is easy to monitor and reduces the requirement of a Certified Financial Planner to share repetitive details with the clients.

  1.   Technological disruption:

We live in a world where a new technology disruption happens every day. Fintech, or the technology that makes the financial systems more efficient rely heavily on Artificial intelligence, Big Data, Automation, Robotics, Analytics and Blockchain ledger.

It is very important that today, the Financial Planners should be comfortable in adapting with the latest technology and the various tools and platforms, Not just that, the Financial advisors also face risks of automated financial advice and Robo advisors. Hence, they need to constantly stay abreast of newer technology so that they can work in tandem with automated platforms and handle complex advisory services.


The role of a Certified Financial Planner is complex and it requires constant updation at every aspect. Challenges faced by planners change with time, technology and the level of awareness among the customer.

However, to continue to be on top of the game, the Financial Planner should be futuristic and be able to predict the possible challenges he could face in upcoming times.