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How to become a CFP?
Lend your expertise: what does it take to become a CFP?
Note: Given the growing interest in the certified financial professional field, we're inviting our experienced professionals to share their knowledge.
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3 answers
Doc Frick
Career Coach and Mentor
1559
Answers
California, CA
Updated
Doc’s Answer
HOW TO BECOME A
CERTIFIED FINANCIAL PLANNER (CFP)
🎓 EARN YOUR BACHELOR'S DEGREE
You can become a financial planner with a bachelor’s in any discipline, but many individuals choose finance degrees, business administration bachelor’s degrees or bachelor’s degrees in accounting. Look for an undergraduate program with courses in areas like investments, estate planning and risk management. Some schools offer financial planning as a concentration within a broader business major. Social sciences and mathematics are also popular majors among aspiring financial planners. If you’re planning to become a CFP, you’ll need to complete your bachelor’s degree either before taking the certification exam or within five years of passing.
📜 CFP CERTIFICATION
Certification is not required to become a financial planner, but it can help bolster your financial planning résumé. The CFP designation is one of the finance industry’s most popular and prestigious certifications, and earning this credential can offer a major career boost. CFPs undergo rigorous training and must act as fiduciaries—in other words, they are obligated to put their clients’ needs before their own. For this reason, CFP certification can enhance your credibility and help potential clients feel confident that you’re acting in their best interests. Additionally, aspiring CFPs must pass a six-hour multiple-choice exam. Finally, you'll need 4,000 to 6,000 hours of professional experience.
CERTIFIED FINANCIAL PLANNER (CFP)
🎓 EARN YOUR BACHELOR'S DEGREE
You can become a financial planner with a bachelor’s in any discipline, but many individuals choose finance degrees, business administration bachelor’s degrees or bachelor’s degrees in accounting. Look for an undergraduate program with courses in areas like investments, estate planning and risk management. Some schools offer financial planning as a concentration within a broader business major. Social sciences and mathematics are also popular majors among aspiring financial planners. If you’re planning to become a CFP, you’ll need to complete your bachelor’s degree either before taking the certification exam or within five years of passing.
📜 CFP CERTIFICATION
Certification is not required to become a financial planner, but it can help bolster your financial planning résumé. The CFP designation is one of the finance industry’s most popular and prestigious certifications, and earning this credential can offer a major career boost. CFPs undergo rigorous training and must act as fiduciaries—in other words, they are obligated to put their clients’ needs before their own. For this reason, CFP certification can enhance your credibility and help potential clients feel confident that you’re acting in their best interests. Additionally, aspiring CFPs must pass a six-hour multiple-choice exam. Finally, you'll need 4,000 to 6,000 hours of professional experience.
Chinyere Okafor
Educationist and Counseling Psychologist
488
Answers
Port Harcourt, Rivers, Nigeria
Updated
Chinyere’s Answer
Hello,
To become a Certified Financial Planner (CFP), you need to meet specific educational, experience, and ethical standards set by the CFP Board. Here's a step-by-step guide on how to become a CFP:
1. Education
- Bachelor’s Degree: You must hold at least a bachelor's degree from an accredited institution. This can be in any field, but you'll also need to complete a specific curriculum related to financial planning.
- CFP Board-Approved Coursework: You must complete coursework in key areas of financial planning, such as:
- Investment planning
- Retirement planning
- Tax planning
- Estate planning
- Insurance planning
- Personal financial management
Some universities offer degree programs specifically designed for CFP preparation.
2. Pass the CFP Exam
- The CFP Certification Exam is a rigorous test that covers a wide range of financial planning topics. The exam lasts about 6 hours and is divided into two 3-hour sessions.
- It tests your ability to apply knowledge in real-life financial planning scenarios. To prepare, many candidates take study courses or prep programs.
3. Gain Relevant Experience
- You must complete 6,000 hours of professional financial planning experience, or 4,000 hours under the Apprenticeship Pathway, which provides more direct supervision and structured development.
- Experience can come from various roles in financial services, such as working with clients on personal financial plans, research, or financial education.
4. Meet the Ethics Requirements
- You must agree to adhere to the CFP Board’s Code of Ethics and Standards of Conduct, which ensures that you act in the best interest of clients.
- You’ll need to pass a background check, as part of the ethical requirement.
5. Earn Your CFP Certification
- After fulfilling the education, exam, and experience requirements, you can apply for the CFP certification.
- Once granted, you are officially a Certified Financial Planner and can use the CFP mark.
6. Maintain Certification*
- To keep your CFP certification active, you must complete 30 hours of continuing education every two years, including 2 hours of ethics training.
- You must also continue to adhere to the CFP Board’s standards of ethics and conduct.
Conclusion
Becoming a CFP requires dedication and a commitment to lifelong learning, but it can lead to a rewarding career in financial planning, helping clients manage their wealth and reach their financial goals.
To become a Certified Financial Planner (CFP), you need to meet specific educational, experience, and ethical standards set by the CFP Board. Here's a step-by-step guide on how to become a CFP:
1. Education
- Bachelor’s Degree: You must hold at least a bachelor's degree from an accredited institution. This can be in any field, but you'll also need to complete a specific curriculum related to financial planning.
- CFP Board-Approved Coursework: You must complete coursework in key areas of financial planning, such as:
- Investment planning
- Retirement planning
- Tax planning
- Estate planning
- Insurance planning
- Personal financial management
Some universities offer degree programs specifically designed for CFP preparation.
2. Pass the CFP Exam
- The CFP Certification Exam is a rigorous test that covers a wide range of financial planning topics. The exam lasts about 6 hours and is divided into two 3-hour sessions.
- It tests your ability to apply knowledge in real-life financial planning scenarios. To prepare, many candidates take study courses or prep programs.
3. Gain Relevant Experience
- You must complete 6,000 hours of professional financial planning experience, or 4,000 hours under the Apprenticeship Pathway, which provides more direct supervision and structured development.
- Experience can come from various roles in financial services, such as working with clients on personal financial plans, research, or financial education.
4. Meet the Ethics Requirements
- You must agree to adhere to the CFP Board’s Code of Ethics and Standards of Conduct, which ensures that you act in the best interest of clients.
- You’ll need to pass a background check, as part of the ethical requirement.
5. Earn Your CFP Certification
- After fulfilling the education, exam, and experience requirements, you can apply for the CFP certification.
- Once granted, you are officially a Certified Financial Planner and can use the CFP mark.
6. Maintain Certification*
- To keep your CFP certification active, you must complete 30 hours of continuing education every two years, including 2 hours of ethics training.
- You must also continue to adhere to the CFP Board’s standards of ethics and conduct.
Conclusion
Becoming a CFP requires dedication and a commitment to lifelong learning, but it can lead to a rewarding career in financial planning, helping clients manage their wealth and reach their financial goals.
Angel S
UI/UX Design Aspirant
57
Answers
India
Updated
Angel’s Answer
To become a Certified Financial Planner (CFP), start by obtaining a bachelor’s degree in finance, accounting, or a related field. Next, complete a CFP Board-registered education program covering key financial planning topics. After that, you’ll need to pass the CFP exam, which tests your knowledge and skills in financial planning. Gaining relevant work experience, usually three years in a financial planning role, is also essential. Finally, adhere to ethical standards and continuing education requirements to maintain your certification!