Certified Financial Planner Training
When seeking assistance in preparing a short-term or long-term financial strategy, clients turn to Certified Financial Planners (CFPs). They are highly trained and are required to hold a minimum of a bachelor's degree, as well as pass a certification exam to earn the CFP credential.
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Identification
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A CFP reviews a client's finances and recommends investments where the client should put her money, such as a home, a retirement account or a mutual fund. Planners become certified to advance in the field.
Significance
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The Certified Financial Planner Board of Standards, the organization that extends the CFP credentials to qualified financial planners, notes that the public seeks the services of planners who have proven that they are knowledgeable about financial services and investing. Training ensures that CFPs have a solid grasp of financial concepts needed to properly advise clients.
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Requirements
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To become a CFP, educational requirements must be met. Candidates must hold a bachelor's degree from an accredited university to take certification exam. Degree holders must can complete an CFP board-approved certificate program on campus or online. Aspiring planners who hold a degree or credential, such as a Ph.D in economics or CPA, do not need to complete a certificate program.
Training
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Certificate programs, which prepare students to take the CFP certification exam, cover a variety of topics including cash flow analysis, retirement planning, stock investments and business math. Approximately 300 such programs nationwide are approved by the CFP Board of Standards.
Certification
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Prospective financial planners take the CFP certification exam, which is offered three times per year. The multiple-choice, 10-hour exam consists of three sessions, and the registration fee is $595. The exam covers such topics as the financial planning process, cash flow management and financing strategies, as well as tax laws. Results are available about eight weeks after the testing date.
Considerations
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Aspiring planners should be aware that after passing the exam, three years of financial planning experience are required before being certified. A criminal background is a prerequisite of certification as a financial planner.
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References
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