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You may be wondering, “what’s with all the letters listed after your name? And what do they mean?”


Example of Professional Designations:

  • Shane Dennehy, CFP®, ChFC®

  • Daniel Caycedo, MS, EA, ChFC®



Simply put, At CayDen, these are our professional designations and a representation of our commitment to you and our core value of education. The letters stand for industry-specific educational accomplishments that we have achieved with the goal of furthering our ability to provide the highest possible level of fiduciary financial services to the clients we serve. The letters also represent our commitment to ourselves; and our manifestation of the core value to pursue life-long education and learning. 


The CFP®, EA, and ChFC® are the pinnacle designations within the Financial and Tax Planning industry. They signify a commitment to a specialized higher-education and professional experience in the topics of Financial Planning, Tax Planning, Investment Management, Retirement Planning, Insurance Planning, Estate Planning, and more…



CFP® - Certified Financial Planner professional


A Certified Financial Planner (CFP) is a professional designation awarded by the Certified Financial Planner Board of Standards, Inc. (CFP Board) to individuals who meet rigorous education, examination, experience, and ethical requirements. Here are the key aspects of what a CFP is and what they do:


Qualifications and Certification

  1. Education: To become a CFP, candidates must complete a comprehensive course of study in financial planning approved by the CFP Board. This coursework typically covers a wide range of topics, including insurance planning, investment planning, retirement planning, tax planning, and estate planning.

  2. Examination: Candidates must pass the CFP Certification Examination, a rigorous test that assesses their ability to apply financial planning knowledge in real-world scenarios. The exam covers various areas.

  3. Experience: Candidates must also have substantial experience in the financial planning field. This typically involves three years of full-time financial planning experience or two years of apprenticeship under a qualified CFP professional.

  4. Ethics: CFPs must adhere to a strict code of ethics and professional responsibility. This includes acting in the best interest of their clients (fiduciary duty), maintaining confidentiality, and providing objective advice.


Responsibilities

  1. Financial Planning: CFPs provide comprehensive financial planning services, which include creating detailed financial plans that address clients’ long-term and short-term financial goals. This includes budgeting, saving, investing, and managing debt.

  2. Investment Advice: CFPs help clients develop investment strategies that align with their risk tolerance, time horizon, and financial objectives. They provide guidance on asset allocation, portfolio management, and retirement savings.

  3. Retirement Planning: They assist clients in planning for retirement by evaluating retirement income needs, determining appropriate retirement savings strategies, and advising on the use of retirement accounts such as 401(k)s and IRAs.

  4. Tax Planning: CFPs offer tax planning advice to help clients minimize their tax liabilities and optimize their tax situation. This includes strategies for tax-efficient investing, retirement withdrawals, and estate planning.

  5. Estate Planning: CFPs help clients plan for the transfer of their wealth and assets after death. This involves creating wills, trusts, and other estate planning documents to ensure that clients' wishes are carried out and that estate taxes are minimized​.


Continuing Education and Standards

  1. Continuing Education: CFPs are required to complete continuing education courses to stay current with the latest financial planning practices and regulations. They must complete 30 hours of continuing education every two years, including two hours of ethics training​.

  2. Professional Standards: CFPs must adhere to the CFP Board’s Standards of Professional Conduct, which include rules on competency, ethical behavior, and the fiduciary duty to put clients' interests first. Violations can result in disciplinary action, including suspension or revocation of the CFP certification.


Benefits of Hiring a CFP

  1. Expertise: CFPs have extensive training and knowledge in all aspects of financial planning, ensuring that clients receive well-rounded and informed advice.

  2. Fiduciary Duty: CFPs are required to act in the best interest of their clients, providing unbiased and objective financial advice.

  3. Comprehensive Planning: CFPs take a holistic approach to financial planning, addressing all aspects of a client's financial life to help them achieve their goals.


In summary, a Certified Financial Planner is a highly qualified professional who provides comprehensive financial planning services, guided by strict ethical standards and a fiduciary duty to their clients. Their expertise covers a wide range of financial areas, making them valuable advisors for achieving financial security and success.




EA - Enrolled Agent:


An Enrolled Agent (EA) is a tax advisor who is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury. Here are the key aspects of what an Enrolled Agent is and what they do:


Qualifications and Licensing

  1. Authorization by the IRS: Enrolled Agents are the only tax professionals licensed by the IRS. They have unlimited practice rights, which means they can represent any taxpayer, handle any tax matter, and practice before any IRS office.

  2. Requirements: To become an EA, one must either pass a comprehensive three-part exam (covering individual and business tax returns) called the Special Enrollment Examination (SEE) or have relevant experience as a former IRS employee. Additionally, EAs must undergo a rigorous background check conducted by the IRS.


Responsibilities

  1. Tax Preparation: EAs are experts in tax preparation for individuals, businesses, and other entities. Their comprehensive understanding of tax laws allows them to provide accurate tax filing services.

  2. Tax Planning: EAs offer strategic tax planning advice to help clients minimize their tax liabilities and maximize their tax benefits.

  3. Representation: EAs can represent taxpayers before the IRS in matters including audits, collections, and appeals. Their license allows them to advocate on behalf of clients in all proceedings involving the IRS.


Continuing Education

  1. Ongoing Training: Enrolled Agents must complete 72 hours of continuing education every three years to maintain their status. This ensures they stay up-to-date with the latest tax laws and regulations​.

  2. Ethical Standards: EAs must adhere to ethical standards set by the IRS, ensuring they provide honest and professional services to their clients.


Comparison to Other Tax Professionals

  1. CPAs and Tax Attorneys: While Certified Public Accountants (CPAs) and tax attorneys also prepare taxes and represent clients before the IRS, EAs are specifically focused on taxation. CPAs have broader accounting expertise, and tax attorneys can handle more complex legal tax issues.

  2. Specialization in Taxation: EAs are often considered the most specialized tax professionals because their training and continuing education are concentrated solely on taxation.


Benefits of Hiring an Enrolled Agent

  1. Expertise in Taxation: Given their focused expertise, EAs are highly knowledgeable about tax laws and can provide reliable tax advice and representation.

  2. Comprehensive Services: EAs can handle a wide range of tax-related matters, making them versatile advisors for both individuals and businesses.

  3. Representation Rights: The ability to represent clients before the IRS is a significant advantage, particularly in cases of audits or disputes with the IRS.


In summary, Enrolled Agents are highly qualified tax professionals authorized by the IRS to represent taxpayers, provide tax preparation and planning services, and navigate complex tax issues. Their expertise and continuing education requirements ensure they are well-equipped to handle a variety of tax-related matters.




ChFC - Chartered Financial Consultant:


A Chartered Financial Consultant (ChFC) is a professional designation for financial planners conferred by The American College of Financial Services. This designation signifies that the holder has undergone comprehensive training and has demonstrated expertise in various areas of financial planning. Here are the key aspects of what a ChFC is and what they do:


Qualifications and Certification

  1. Education: To earn the ChFC designation, candidates must complete a series of courses covering a broad range of financial planning topics. The curriculum typically includes courses on insurance planning, income taxation, retirement planning, investments, estate planning, and financial planning for businesses and individuals.

  2. Examination: Unlike the CFP designation, the ChFC does not require a single comprehensive exam. Instead, candidates must pass exams at the end of each course in the ChFC program. This approach allows for a more detailed understanding and assessment of each specific area of financial planning.

  3. Experience: While there is no specific work experience requirement to enroll in the ChFC program, candidates are often financial professionals with experience in the field, such as financial advisors, insurance agents, and investment consultants.

  4. Ethics: ChFCs must adhere to a code of ethics set by The American College of Financial Services. This includes acting in the best interests of their clients and providing competent and ethical financial advice.


Responsibilities

  1. Comprehensive Financial Planning: ChFCs provide detailed financial planning services, which encompass a wide range of areas such as retirement planning, estate planning, tax planning, and risk management. Their training equips them to handle complex financial situations and provide tailored advice.

  2. Investment Advice: They assist clients in developing investment strategies that align with their financial goals, risk tolerance, and time horizon. ChFCs are well-versed in various investment vehicles and can offer informed guidance on portfolio management​.

  3. Insurance Planning: ChFCs have extensive knowledge of insurance products and can advise clients on selecting appropriate insurance coverage, including life, health, disability, and long-term care insurance.

  4. Tax Planning: They offer strategies to minimize tax liabilities and maximize tax efficiency, helping clients understand the implications of their financial decisions on their tax situation.


Continuing Education and Standards

  1. Continuing Education: ChFCs are required to complete 30 hours of continuing education every two years to maintain their designation. This ensures they stay current with changes in financial regulations and planning strategies.

  2. Professional Standards: Adhering to ethical standards is crucial for ChFCs. They must follow the principles of integrity, objectivity, and competence, always prioritizing their clients' best interests.


Comparison to Other Financial Designations

  1. CFP vs. ChFC: While both CFPs and ChFCs are highly respected financial planning designations, the CFP is more widely recognized due to its single comprehensive exam and broader public awareness. However, the ChFC curriculum often covers more topics in greater depth, making it particularly beneficial for those specializing in certain areas of financial planning.

  2. CFA vs. ChFC: The Chartered Financial Analyst (CFA) designation is more focused on investment management and financial analysis, whereas the ChFC provides a broader education in comprehensive financial planning.


Benefits of Hiring a ChFC

  1. Expertise: ChFCs possess in-depth knowledge across a wide spectrum of financial planning areas, enabling them to provide comprehensive and specialized advice.

  2. Ethical Commitment: Clients can trust that ChFCs will adhere to high ethical standards and act in their best interest.

  3. Tailored Advice: With their extensive training, ChFCs can offer personalized financial plans that address the unique needs and goals of their clients.


In summary, a Chartered Financial Consultant is a highly qualified financial professional with comprehensive training in financial planning. They provide expert advice in areas such as retirement, insurance, investment, and tax planning, and are committed to ethical practices and continuous education.




MSA - Masters of Science in Accounting:


A Master of Science in Accounting (MSA) is a graduate degree that provides advanced education in accounting principles and practices. It is designed to prepare students for careers in accounting, auditing, and financial management. Here are the key aspects of an MSA degree:


Academic Focus

  1. Advanced Accounting Principles: The curriculum covers in-depth accounting topics such as financial accounting, managerial accounting, auditing, taxation, and financial statement analysis.

  2. Regulatory and Ethical Standards: Courses often emphasize understanding and applying accounting standards (e.g., GAAP, IFRS) and ethical practices in the accounting profession​.

  3. Analytical and Technical Skills: Students develop skills in data analysis, financial modeling, and the use of accounting software and tools. This prepares them for the technical demands of accounting roles.


Benefits of an MSA Degree

  1. Specialized Knowledge: An MSA provides in-depth knowledge of accounting principles and practices, equipping graduates with specialized skills that are highly valued in the job market.

  2. Career Flexibility: The degree opens up various career paths in public accounting, corporate finance, government, and nonprofit sectors.

  3. Professional Growth: With an MSA, graduates are well-positioned for leadership roles in accounting and finance, benefiting from advanced education and professional certification opportunities.


Summary

A Master of Science in Accounting is a valuable graduate degree that offers advanced education in accounting and prepares students for a variety of career opportunities. The program provides in-depth knowledge of accounting principles, regulatory standards, and analytical skills. Graduates are equipped to pursue professional certifications such as CPA, CMA, and CIA, and are well-positioned for leadership roles in public accounting, corporate finance, and other sectors​.




MSM - Masters of Science in Management


A Master of Science in Management is a versatile graduate degree that equips students with advanced management knowledge and skills. It prepares graduates for leadership roles across various industries by focusing on management principles, analytical skills, and strategic thinking. Whether aiming for career advancement, transitioning into management, or starting a business, an MSM provides the necessary tools for success.


A Master of Science in Management (MSM or MScM) is a graduate degree that provides advanced education in management principles and practices. It is designed for individuals seeking to enhance their managerial and leadership skills, whether they are early in their careers or looking to pivot to a management-focused role. Here are the key aspects of an MSM degree:


Academic Focus

  1. Management Principles: The MSM curriculum typically covers fundamental management topics such as organizational behavior, strategic management, human resource management, and operations management.

  2. Analytical and Technical Skills: Courses often emphasize analytical skills, including data analysis, decision-making, and problem-solving. Some programs also integrate technical skills relevant to management, such as project management and information systems​.

  3. Leadership and Strategy: The program also focuses on developing leadership skills and strategic thinking. This includes courses on leadership theory, change management, and strategic planning​.


At CayDen Wealth Management your team of Financial Advisors is always led by a CFP® professional. Schedule your free intro meeting and financial review, today: https://calendly.com/caydenwealthmanagement/introductory-call?month=2024-07





About the CayDen advisors:


Shane Dennehy is a CERTIFIED FINANCIAL PLANNER™ professional, as well as the President and Sr. Wealth Management Advisor at CayDen Wealth Management, a Colorado registered investment advisory firm with offices located in Broomfield, Colorado and Charlotte, North Carolina. Shane works out of CayDen Wealth Management's Broomfield office, providing virtual, fiduciary, comprehensive wealth management and tax services for high performing professionals and their families. Services include proactive Financial Planning, Investment Management, & Tax Services.


Daniel Caycedo is the Investment & Tax Strategist, as well as a Wealth Management Advisor for CayDen Wealth Management, a Colorado registered investment advisory firm with offices located in Broomfield, Colorado and Charlotte, North Carolina. Daniel works out of CayDen Wealth Management's Charlotte office, providing virtual, fiduciary, comprehensive wealth management and tax services for high performing professionals and their families. Services include proactive Financial Planning, Investment Management, & Tax Services.






Welcome to CayDen Wealth Management, where your financial goals become our mission.


Today, we're going to take you through the process of how we partner with you to achieve your financial dreams... At CayDen, we understand the importance of formally identifying and prioritizing your household's financial goals.


Our first step is to help you gain greater clarity into your current finances, get organized, and ultimately avoid costly financial mistakes. We analyze your cash flow and resources meticulously to develop a custom saving and investing action plan that aligns with your goals.


We further provide professional investment management to put your savings to work for you, tailoring our strategies to align with your specific goals.


Managing your finances can feel like a puzzle sometimes. That's why we're here to help you organize all the pieces, providing clarity and advice, with a holistic view of your financial picture.


Quarterly planning meetings, year-round email support, and annual tax planning and filing services are all part of our commitment to you. We want to ensure that you're not just meeting your goals but exceeding them.


And it doesn't stop there. We understand that life and finances are dynamic. That's why we're with you every step of the way, so you can make confident financial decisions and achieve your goals.


Our goal is to help you achieve your goals, build wealth, and reach financial freedom. We do that by systematizing and automating the processes. Let us handle the intricacies while you focus on what matters most to you.


At CayDen, we offer three levels of service to cater to your unique needs.


Whether you're just starting to build your wealth, you’re emerging wealth, or already in the realm of private wealth, our comprehensive financial services cover everything from Financial Planning and Taxes to Investment Management.


After all, It's not just about managing your money; it's about maximizing it to achieve your goals, and watch your wealth grow.


So, let CayDen Wealth Management be your guide and partner to financial success. Partner with us, and let's embark on this planning, savings, and investing journey together.


Because when it comes to your finances, we've got your back.



Plan, save, and invest for financial success with CayDen Wealth Management. You can schedule your free intro meeting and financial review, today, by following this link: https://calendly.com/caydenwealthmanagement/introductory-call?month=2024-07



About the CayDen advisors:


Shane Dennehy is a CERTIFIED FINANCIAL PLANNER™ professional, as well as the President and Sr. Wealth Management Advisor at CayDen Wealth Management, a Colorado registered investment advisory firm with offices located in Broomfield, Colorado and Charlotte, North Carolina. Shane works out of CayDen Wealth Management's Broomfield office, providing virtual, fiduciary, comprehensive wealth management and tax services for high performing professionals and their families. Services include proactive Financial Planning, Investment Management, & Tax Services.


Daniel Caycedo is the Investment & Tax Strategist, as well as a Wealth Management Advisor for CayDen Wealth Management, a Colorado registered investment advisory firm with offices located in Broomfield, Colorado and Charlotte, North Carolina. Daniel works out of CayDen Wealth Management's Charlotte office, providing virtual, fiduciary, comprehensive wealth management and tax services for high performing professionals and their families. Services include proactive Financial Planning, Investment Management, & Tax Services.

Control the controllable. In this blog post we will discuss financial aspects of your life that you CAN control, and some things that are out of your control. So focus your time and resources on the items within your control. Don’t waste time, money, and effort on things you have no ability to change.


At CayDen Wealth Management, we often encounter savers and investors feeling overwhelmed by their financial situations and the choices they have to make. While it's true that many aspects of your financial life are influenced by external factors beyond your control, such as market fluctuations and economic downturns, there are several key elements in your financial life you can, and should take control of. Let’s explore what aspects of your financial life you can control…


Controllable #1. Managing Your Expenses


One of the most critical aspects of personal finance is controlling your expenses and living below your means. This begins not only with understanding where your money comes from, but with understanding where your money goes to, each month. Also known as “tracking your monthly expenses”. So do just that. Start by tracking all your expenditures, each month, and categorizing them into two core categories; necessities (such as housing, utilities, and groceries) and discretionary spending (like dining out, entertainment, and vacations). 


Once you have a clear picture of your spending habits you’ll be empowered with awareness of your cash flow to decide what is good use of your money, and what expenses can be cut out of your life. Now, create a budget that aligns with your financial goals. That way your money is working for you and you are making consistent progress towards achieving your goals. Here are the controllable aspects of budgeting you should focus on…


Distinguish Needs vs. Wants: Prioritize your spending on needs before wants. This doesn't mean you can't enjoy life, but balance is key.


Cut Unnecessary Expenses: Identify areas where you can cut back. With greater awareness of your cash flow, you have more clarity into what is truly a worthy expense for your household. This might include reducing dining out, canceling unused subscriptions, or shopping for better deals on recurring expenses.


Use Technology: Leverage budgeting apps to help you stay on track. Apps can provide insights and alerts to keep your spending in check, as well as providing an accountability partner.


Also, check out our blog CayDen's 5 Point Guide To Creating A Realistic Budget to help you with creating your budget.

 


Controllable #2. Setting an Achievable Savings Rate


Your savings rate is the biggest contributor to building wealth. It is the percentage of your income that you save and invest for the future. A higher savings rate can significantly impact your financial security and retirement readiness. Your savings rate is the number one contributor to growing your wealth, meaning that your savings rate is the single, most impactful controllable within your personal finances that directly contributes to the growth of your wealth. So focus on controlling your spending and increasing your savings rate consistently. You can make saving easier by…


Automating Savings: Set up automatic transfers from your checking account to your savings or investment accounts. This ensures you pay yourself first.


Increase Contributions Gradually: If you’re not currently saving much, start small and gradually increase your savings rate. Aim to save at least 20% of your income, but any increase is beneficial.


Prioritize Retirement Accounts: Take advantage of retirement accounts like 401(k)s or IRAs, especially if your employer offers matching contributions. This is essentially free money towards your retirement.


Controllable #3. Setting Your Long Term Asset Allocation


Asset allocation, or your investment mix, refers to how you distribute your investments across different asset classes, such as stocks, bonds, and cash, ideally in the form of index funds. Proper asset allocation can help manage risk and optimize returns based on your financial goals and risk tolerance. You can confidently invest your money to align with your long term goals by doing the following…


Assess Risk Tolerance: Understand your comfort level with risk. Younger investors may afford to take on more risk, investing more heavily in stock index funds, while those nearing retirement might prefer more bond holdings.

 

Diversify Investments: Diversification involves spreading investments across various asset classes to reduce risk. A diversified portfolio can protect against significant losses in any single investment.


Rebalance Regularly: Periodically review and rebalance your portfolio to maintain your desired asset allocation. Market fluctuations can skew your allocation, and rebalancing helps realign it with your goals.


Investment Strategist and CayDen’s Portfolio Manager, Daniel Caycedo, MS, EA, ChFC® says “Controlling the controllables with investing means understanding our limitations as investors. We know that we can not see the future, and neither can anyone else. So instead of attempting to predict what company, industry, or location that will do best in the future, you can simply buy the whole market through index funds. Index funds provide ownership in thousands of companies in a cost effective and tax-efficient way. We don’t know what companies will perform the best in the future, but we do know that companies will continue to make money, and the market will likely be higher 10 years from now than it is today. So keep it simple by investing in stock and bond index funds, balanced to your desired risk level.”


Final Thoughts


Taking control of your personal finances requires discipline, planning, and regular review. By managing your expenses, setting a robust savings rate, and maintaining a thoughtful asset allocation, you can navigate financial uncertainties with confidence and work towards achieving your financial goals by focusing on controlling the controllables. Remember, while you can't control the markets or the economy, you can control your financial decisions and habits, laying the groundwork for a secure financial future and a strong financial foundation.


At CayDen Wealth Management, we are here to guide and support you on your financial freedom journey. If you need personalized advice or have questions about managing your finances, don't hesitate to reach out. Together, we can create an action plan tailored to your unique situation, ensuring you’re prepared for whatever the future holds. Plan, save, and invest with CayDen Wealth Management. Schedule your free Financial Review and Intro meeting with CayDen Wealth Management here: https://calendly.com/caydenwealthmanagement/introductory-call?month=2024-06



About the author: Shane Dennehy is a CERTIFIED FINANCIAL PLANNER™ professional, as well as the President and Sr. Wealth Management Advisor at CayDen Wealth Management, a Colorado registered investment advisory firm with offices located in Broomfield, Colorado and Charlotte, North Carolina. Shane works out of CayDen Wealth Management's Broomfield office, providing virtual, fiduciary, comprehensive wealth management and tax services for high performing professionals and their families. Services include proactive Financial Planning, Investment Management, & Tax Services.

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