About Financial Planner Certification
Who should consumers pick to plan the rest of their financial lives? This is a pretty daunting task when the variables are unknown. Financial planning is a skill that should be relegated to financial professionals. Certification in financial planning serves a pivotal role for the certified planner and the consumer.
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Identification
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The certified financial planner exam takes 10 hours. It covers several topics including: general principles of financial planning, insurance planning, employee benefits planning, investments and securities planning, state and federal income tax planning, estate tax, gift tax and transfer tax planning, asset protection planning, retirement planning and estate planning. Participants in the certified financial planning exam must have three years of work experience in a financial planning environment, a Bachelor's degree and pass of code of ethics screening by the Certified Financial Planning Board. The application fee for the exam is $100.
Benefits
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Certified financial planning certification benefits the certified planner in a variety of ways. He has a marketable skill that employers in financial institutions want to see. It is also an opportunity to branch out and become an entrepreneur. Consumers have a guarantee that they are placing their financial futures in the hands of someone that has a basic understanding of financial practices.
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Theories/Speculation
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As markets become more volatile, it is increasingly more important that financial planners be one step ahead of possible dangers. When industries, such as the automotive industry, have predictable downturns, financial planners need to have frank conversation with consumers and relay as many facts as possible about what lies ahead. Consumers also need to take accountability in having a basic understanding of their portfolios to know how the rise and fall of specific industries will affect their investments.
Expert Insight
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There are certain levels of expertise that automatically equip a person to the field of financial planning. Certified Public Accountants, licensed attorneys, Chartered Financial Accountants (CFAs) and Chartered Financial Consultants (ChFCs) are automatically eligible for the certified financial planner exam. Doctorates in business administration, business or economics are also automatically eligible. It is assumed that these levels of education are amply prepared to delve into financial planning issues. Transcripts may be provided to the certification board where a participant's education level is in question.
History
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The Certified Financial Planning Board was created in 1985. In 1993, the exam to certify financial planners became a requirement for certification. In 1998, the Certified Financial Planning Board set up office in the nation's capital to act as a lobbying group that educates law makers on the needs of financial planners.
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