Building Your Financial Future on a Strong Foundation

Jesse W. Hurst, CFP^®, AIF^®

March 31, 2025

Source: Sephaku Cement

A house’s foundation is crucial because it acts as the base that supports the entire structure. It distributes the house's weight evenly onto the ground, preventing it from shifting, settling, or collapsing and ensuring overall stability against natural forces like wind, rain, and even earthquakes; essentially, it's what keeps the house standing and level throughout its lifespan. A properly designed foundation can withstand ground movement caused by factors like soil moisture changes, frost heave, or even minor seismic activity. It is essential for maintaining the overall structural integrity of the house, preventing cracks in walls, uneven floors, and other damage.

The CFPs of Impel Wealth Management believe that having a financial plan provides a similarly strong foundation for your financial future. This is why we lead with the financial planning process. We get to know our clients and their unique goals, resources, and aspirations for the future. We then develop a detailed analysis to determine if they are on track to make a successful transition to their unique life of significance. Just as important, we continue to monitor our progress toward our preferred future through regular updates to the plan, making adjustments as necessary to help us stay on track.

The CFP Board is leading a ten-year academic study to track and report on the actual impact of holistic financial planning on clients. They will track, follow, and measure financial and overall well-being outcomes of a diverse and representative sample of American households. The study aims to provide an evaluation of the benefits of financial planning and working with CFP® professionals compared to the services of professionals who do not hold CFP® certification and those with do-it-yourself approaches.

The researchers launched the study’s inaugural survey in July 2024 and sent it to targeted members of the AmeriSpeak® Panel, managed by NORC at the University of Chicago. The survey generated responses from 4,027 eligible participants, the data from which serve as the basis for the summary statistics presented in their report. A link to the study is included below if you are so inclined to read through it.

financial-planning-longitudinal-study-2025.pdf

Below are some of the study's initial findings:

Americans working with CFP® professionals are more likely to feel prepared for a crisis, which translates into greater confidence in managing the unexpected.

Four in five people who work with a CFP® professional indicate that they have three months of income saved in their emergency fund. By comparison, 68% of Americans advised by a financial planner without CFP® certification and only 53% of unadvised Americans have sufficient emergency savings.

Similarly, people working with CFP® professionals are likelier to have an up-to-date estate plan. Just under 3 in 5 Americans advised by a CFP® professional have a will, compared to 49% of people who work with a financial advisor without CFP® certification and 25% of those who are unadvised.

Americans working with a CFP® professional are more likely to live comfortably than others while having fewer financial-related conflicts with family members. More than half of people advised by a CFP® professional describe themselves as “living comfortably” (51%), 13 percentage points higher than those who are working with a financial advisor without CFP® certification (38%) and 23 percentage points higher than non-advised Americans (28%).

Clients advised by CFP® professionals signal greater satisfaction with their experience. Seven in 10 Americans advised by a CFP® professional indicate they trust their advisor “a lot” (69%). In contrast, only 52% of people working with a planner without CFP® certification hold their advisor in the same esteem.

None of this is surprising to me. In my initial interview to enter this profession in 1987, I was asked why I wanted to pursue a career in financial planning. I responded, “If I could have a career helping people solve their financial questions and concerns, I believe it would be rewarding to both me and my clients.” That answer seemed to satisfy the hiring manager who took a chance on this 22-year-old and gave me a chance to begin this journey that is now 38 years into its evolution.

What happens if a foundation is not built correctly? The house may experience cracks in walls, uneven floors, and doors that won't close properly due to settling. We know that fixing foundation issues in a house can be costly and disruptive. We believe the same to be true for your financial foundation.

The CFP’s of Impel Wealth Management will seek to continue building strong financial foundations for our clients through the planning process. It is in our DNA and our culture. If you have a friend or loved one with questions about their financial future or the advice they are receiving, we are here to help. Please pass this along to them, and we would be more than happy to share our Second Opinion Service with them. A link to our website page explaining this service is provided below.

https://www.impelwealth.com/second-opinion

As Jesus was finishing the Sermon on the Mount, he made the following observation in Matthew chapter 7:

“Therefore, everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock.The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock.”

I thought this was an important reminder and affirmation for you, our trusted friends and clients, as we continue “Moving Life Forward.”

Senior Wealth Manager

Building Your Financial Future on a Strong Foundation

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