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Nowadays, professionals in tax, finance, and accounting are more attracted to acquiring CFP® certification in heaps. In 2021, a 3.4% boost in CFP® certificants was reported that is still elevating in 2023. But, have you ever wondered about the reason behind the increase in interest of professionals to become CFP®?
No worries!!
Herein, we will guide you about everything you need to know about becoming a CFP® in detail. Our points of discussion are the following:
A Certified Financial Planner (CFP®) is a professional designation awarded to individuals globally who have met the standards set by the Certified Financial Planner Board of Standards (CFP® Board). The CFP® certification is globally recognized in the field of financial planning. CFP®s help individuals in financial planning. From investing planning in the market, and real estate to retirement planning, CFP® plays a significant role.
If you are asking what is the job role of CFP®s? The accurate response to this is - CFP® professionals are finance planners or we can say that they are personal financial advisors.
The primary role of a CFP® is to provide comprehensive and objective financial planning advice to individuals, families, and businesses. They work closely with clients to understand their:
CFP®s are trained to analyze financial situations, assess risk tolerance, evaluate investment options, develop retirement plans, provide tax planning strategies, offer estate planning advice, and address various aspects of personal finance. They consider multiple factors, such as income, expenses, assets, liabilities, and long-term goals, to create holistic financial plans that align with their clients' needs.
The earning potential of a CFP® can vary based on several factors, including their experience, expertise, geographic location, and the size of their client base.
It's important to note that the income of a CFP® is not solely derived from a fixed salary. But, it also includes commissions, fees, or a percentage of assets under management. Compensation structures may differ based on whether a CFP® works for a financial planning firm, a brokerage firm, or operates independently.
Becoming a CFP® requires certain qualifications along with completing the necessary steps outlined by the CFP® Board. The certification is open to individuals from various professional backgrounds who aspire to excel in the field of financial planning.
While a background in finance or related fields can be advantageous, it is not a prerequisite for becoming a CFP®. Professionals from diverse backgrounds, including:
Professionals from the above fields can pursue the CFP® certification by attending CFP® exam prep courses to enhance their financial planning expertise.
To become a CFP®, individuals must fulfill specific qualifications and experience requirements. The main prerequisites include
It's important to note that these requirements may be subject to change, and candidates should refer to the latest guidelines provided by the CFP® Board for accurate and up-to-date information.
The regulatory body that governs the CFP® certification and sets the standards for the profession is the CFP® Board. The CFP® Board is the governing body that promotes and enforces ethical conduct and competency among CFP® professionals.
The CFP® Board establishes and maintains the standards for CFP® certification, including the education, examination, experience, and ethics requirements. It also provides ongoing guidance, resources, and support for CFP® professionals, ensuring they stay updated with the evolving landscape of financial planning.
To become a CFP®, you are required to pass the CFP® exam conducted by the CFP® board. While applying, you need to meet the following educational requirements:
These are the mandatory educational requirements to apply to become a CFP® professional.
This exam consists of two 3-hour sessions with 170-question multiple-choice questions. You will need to answer both stand-alone and scenario-based questions throughout the exam.
Note: In order to take the CFP® exam, you must first complete the coursework. The bachelor's degree requirement must be completed within five years of passing the CFP® exam.
So, how will you prepare for your CFP® exam? CFP Exam Prep Courses, the right way for the preparation of CFP® examination.
Let’s explore a bit more on the CFP® exam prep course!
The Certified Financial Planner (CFP®) exam is one of the toughest exams to become a finance professional. But, once you pass it, you will get a CFP® certification that will enhance your presence in the market. Therefore, it becomes necessary for you to prepare for the exam rigorously. And for your preparation, CFP® exam prep courses are the best option. These courses provide comprehensive study materials, expert guidance, and valuable practice resources vital for effective exam preparation.
CFP® exam prep courses offer comprehensive study materials that cover all the topics tested in the exam. From financial planning principles to retirement planning, investment management, tax planning, and estate planning, these courses ensure you have a deep understanding of the core concepts and principles. myCPE presented CFP® prep courses available online, making it easier for learners to grasp complex topics.
One of the key benefits of CFP® exam prep courses is access to practice resources. At myCPE, these courses contain Concise Video Lectures, Quiz Questions with Detailed Explanations, full-length practice cases included, 100% On-Demand Courses and Monthly Live Mentoring Sessions.
Investing in a CFP® exam prep course can significantly increase your chances of success and set you on the path to becoming a certified financial planner.
At myCPE, you can find the best CFP® exam prep course! From the best CFP® exam prep materials to monthly live mentoring sessions, you will get amazing features at myCPE and prepare for the exam on time!
Maintaining a CFP® license involves fulfilling certain requirements to ensure ongoing professional competence and ethical conduct. The key aspects of maintaining a CFP® license include:
Continuing Education (CE): CFP® professionalsare required to engage in continuing education to meet the industry trends, regulatory changes, and advancements in financial planning. The CFP Board mandates a specific number of continuing education hours to be completed within each two-year CE cycle.
Ethics Requirement: CFP professionals must uphold the highest ethical standards. As part of maintaining their license, they must adhere to the CFP® Board's Code of Ethics and Standards of Conduct, which outlines principles and rules governing their professional conduct.
Renewal: CFP professionals must renew their certification every two years by submitting a renewal application to the CFP Board. This application includes updating personal and professional information, affirming adherence to ethical standards, and fulfilling the continuing education requirements.
Failure to meet the ongoing requirements for maintaining a CFP® license can result in the revocation or suspension of the certification.
Continuing education is a vital component of maintaining a CFP® license and ensuring ongoing professional development. The CFP® Board requires CFP® professionals to participate in continuing education activities to enhance their knowledge and skills in the field of financial planning.
The CFP® Board-approved continuing education programs cover a wide range of topics, including retirement planning, tax planning, investment management, estate planning, ethics, and regulations. These programs can be offered through various mediums, such as seminars, workshops, webinars, conferences, and online courses.
CFP® professionals are responsible for tracking and reporting their continuing education credits to the CFP® Board. The board sets specific requirements for the number of CE hours that must be completed within each two-year CE cycle. This ensures that CFP® professionals stay current with industry trends, regulations, and best practices.
Additionally, the CFP® Board may conduct random audits to verify compliance with continuing education requirements. It is crucial for CFP® professionals to maintain accurate records of completed CE activities to demonstrate their commitment to ongoing professional development.
Continuing education enables CFP® professionals to expand their knowledge, stay updated with industry advancements, and provide their clients with the most relevant and informed financial advice. It serves as a mechanism for continuous improvement and ensures that CFP professionals maintain their expertise in an ever-evolving field.
Taking CFP® courses (for earning CE credits) and CFP® prep materials (for the preparation of CFP® examination) at myCPE can be a valuable step toward achieving your goal of becoming a Certified Financial Planner.
Good luck with your CFP® journey!
Professionals from various backgrounds aspire to become CFP®s. Financial advisors, investment advisors, insurance professionals, tax professionals, and individuals in the finance industry seek CFP® certification. CFP® certification not only adds additional qualifications but also enhances financial planning knowledge that helps you to demonstrate credibility to clients.
The duration of the course depends on individual factors such as prior knowledge, study pace, and time commitment. However, myCPE typically provides estimated completion times for their courses. On average, it may take several weeks to a few months to complete the CFP® prep course thoroughly.
No specific prerequisites are required to enroll in the CFP® prep course at myCPE. However, familiarity with accounting principles and investment strategies can be advantageous while attending the courses.
Yes, myCPE often provides additional support through instructor assistance. Here, an expert team allows you to seek clarification on specific topics or interact with other learners, fostering a collaborative learning environment.
The cost of the CFP® exam prep course at myCPE is just $349 annually. Once you register for this course, you will get access to Video Lectures, full-length practice cases, 1000+ CFP® Quiz Questions, On-Demand Courses, regular updates until you PASS and 100+ Hours of Excel Courses.
Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. Dinesen is a regular CPE Presenter at myCPE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics. Jason has developed a strong following within the professional community for tax-related subjects. Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community.
Nicholas Branson, CPA
