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Let us get to know the four steps on how to become a Certified Financial Planner:
Education: The candidate must complete a registered program at an accredited institution of higher learning. In addition, the candidate must have a bachelor’s degree (any area of study) from an accredited college or university to carry the designation. If you do not have a college degree, but have finished the required education, you may take the exam, but you must obtain a degree within five years after passing the exam in order to be certified.
Examination: The CFP®® Exam is a rigorous, professional exam administered by the CFP®® Board and is given in approximately 50 sites 3 times annually (March, July, and November). Total time of the exam is 10 hours, over the two days. The emphasis of the exam is to determine whether the test-taker is able to competently apply their knowledge of Financial Planning.
Experience: A candidate needs to have to have 3 years of full time experience working with the public in some area which involves financial planning. It could be in handling investments, counseling people about their retirement, selling insurance, doing financial planning, preparing plans, presenting plans or teaching of same.
Ethics: Each CFP®® candidate in letter and spirit agrees to abide by the Board’s Code of Ethics, and further, agrees to the CFP®® Board’s right to enforce the code.
Any advisor who is found by the board to be involved in serious misconduct can be stripped of the designation.
So why do companies prefer Certified Financial Planner? Because survey says, the certification has had a positive impact on client trust, confidence with clients and technical expertise. Companies with CFP®® professionals attract 53% more clients than companies without CFP®® professionals. Finally, CFP®® professionals earn 26% than other financial advisors, adjusted for years of experience. So do you want to be in the creamy layer of financial sector, go opt for CFP®®.
