Becoming a Certified Financial Planner
Are you looking to take your financial services career to the next level? Becoming a Certified Financial Planner (CFP) is one of the most comprehensive ways to do so. CFP professionals are highly sought after within the financial services industry and certification can open up new career opportunities. It is also a great way to prove your competency as a professional advisor, allowing you to have greater input on vital financial decisions.
In this guide, we’ll explore what it takes to become a Certified Financial Planner, including the requirements for certification, the benefits of becoming a CFP and the steps required to acquire it.
What is a Certified Financial Planner?
A Certified Financial Planner (CFP) is an elite status awarded to financial professionals who have completed the necessary education and practicum requirements to prove expertise in certain areas of financial planning. CFPs are considered to be among the most knowledgeable when it comes to important financial decisions, such as retirement planning, estate planning and investing.
Requirements for Becoming a Certified Financial Planner
In order to become a CFP, you’ll need to meet a variety of criteria. These include:
• Be at least 18 years of age
• Have a Bachelor’s degree (or higher) in a related field
• Complete the Certified Financial Planner Board of Standards Inc. (CFP Board) program
• Pass an examination administered by the CFP Board
• Adhere to CFP Board rules and regulations
• Participate in approved Continuing Education courses
The CFP Board Program
The CFP Board Program is designed to help prepare aspiring financial professionals to become Certified Financial Planners. The program includes a combination of coursework and practicum experience in order to teach the fundamentals of financial planning. It covers topics like:
• Financial planning
• Investment planning
• Retirement planning
• Risk management
• Tax planning
• Estate planning
• Insurance planning
• Professional ethics
The program also features a professional mentorship program, which allows aspiring CFPs to gain experience in the field through a hands-on approach.
Advantages of Becoming a Certified Financial Planner
Being a Certified Financial Planner comes with many benefits. Most notably, CFPs are recognized within the industry as highly knowledgeable and experienced professionals. This can open up a wealth of career opportunities, such as higher-level positions within financial services firms and the potential to gain more clients.
In addition, CFPs can typically command higher wages than their non-certified counterparts. This, coupled with the potential for bonuses and other incentives, can make the process of obtaining your CFP certification well worth the effort.
Finally, having the CFP credential demonstrates your commitment to your clients, as well as your commitment to upholding the highest standards of financial accountability and ethical conduct.
Steps to Becoming a Certified Financial Planner
Now that you understand the requirements and advantages of becoming a CFP, here are the steps you need to take to obtain the credential:
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Take the CFP: Board course and pass the exam
In order to gain your CFP certification, you’ll first need to take the CFP Board Program. Once completed, you can take the test, which is comprised of 250 multiple choice questions. The exam must be passed in order to become certified. -
Join a CFP: Board-approved affiliated program
In order to join the CFP Board’s affiliated programs, you need to have taken and passed the CFP Board’s approved coursework. Once accepted into one of these programs, you’ll need to complete a minimum of 3,000 hours of supervised experience in the field of financial planning. -
Submit your application: Once you’ve completed the CFP Board’s coursework and practicum experience, you can submit your application for certification. This includes a non-refundable application fee and an ethics review. Applicants must also meet the CFP Board’s experience requirements.
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Maintain CFP certification: Once you become a Certified Financial Planner, there are certain requirements that must be maintained in order to remain certified. These include adhering to the CFP Board’s Code of Ethics and Professional Responsibility and submitting quarterly reports on continuing education courses. You must also complete a minimum of 30 hours of continuing education in each two-year cycle.
Becoming a CFP can be a long and arduous process, but the rewards are unmistakable. Not only do CFPs have the potential to become influential advisors in the financial services industry, but the credential is also one of the most respected and sought-after qualifications within the profession. If you’re looking to take your financial services career to the next level, becoming a Certified Financial Planner is a great way to do so.
