How to Become a CFP

Rewards of Financial Planning

A CFP, or a certified financial planner, helps clients prepare for the future by advising them on retirement, income tax, estate planning, managing investments, insurance and more. Clients can be individuals or commercial organizations. The CFP designation is awarded by the Certified Financial Planner Board of Standards, Inc., and signifies that a financial planner has received advanced training and education in financial planning services. An aspiring CFP should be great with numbers, able to make correct financial projections and have a desire to help people.

Instructions

1. Earn a bachelor's degree. Aspiring certified financial planners must hold an undergraduate degree from an accredited university or college in order to attain CFP certification. While no specific degree is required for this career, common majors include finance, accounting, business administration and economics.

2. Complete the educational requirements of the CFP Board. You can finish the required professional training by attending a CFP Board-registered educational program offered at colleges, universities and distance learning programs. Courses cover the major financial planning areas, including income tax, estate, insurance, retirement, employee benefits and investment planning. Certified Public Accountants (CPAs), Chartered Life Underwriters (CLUs), Chartered Financial Consultants (ChFCs) and licensed attorneys can typically waive the education requirement. Individuals who have earned doctoral degrees in business, economics or business administration have already fulfilled the CFP Board requirements and can apply for a "challenge status."

3. Pass the CFP Certification Examination. This rigorous exam tests your ability to competently apply your financial planning abilities and knowledge to a variety of client situations. This exam is 10 hours long and lasts for 2 days. All 285 exam questions are in multiple-choice format.

4. Meet the CFP Board's experience requirement. You must have at least 3 years of full-time industry experience before you can become a certified financial planner. This professional experience can include providing personal financial planning services to clients, selling insurance, advising clients about retirement, teaching financial planning topics to students, or handling client investments.

5. Agree to the CFP Board's "Code of Ethics" and pass a background check. You will be asked to disclose any pending or past financial-related litigation proceedings and agree to follow the CPF Board's "Code of Ethics and Professional Responsibility." The CPF Board also runs a criminal check on you to see if you are eligible for certification.

6. Pay your fees and receive authorization to use the CFP designation. Once you have paid your certification fees, you are an authorized certified financial planner. You can now advertise yourself as a CFP.

7. Renew your certification. You must renew your CFP certification every other year. The CFP Board's renewal requirements are a renewal fee, a recertification application and 30 hours of continuing educational courses in financial planning subjects.

Tips & Warnings

• The CFP Board examination is offered only three times a year at about 50 sites in the U.S. Be sure to register for your exam at least two months ahead of time to secure a seat.

• Do not promote yourself as a CFP until you have received authorization from the CFP Board.

Resources

• Certified Financial Planners Board of Standards
• Outlook for Financial Analysts and Personal Financial Advisors