Certified Financial Planner (CFP) Course
The Certified Financial Planner (CFP) certification is one of the paramount credentials a finance expert can obtain. It gives individuals the in-depth financial wisdom, capabilities, and proficiency needed to flourish in the challenging financial planning landscape.
A Certified Financial Planner (CFP) Course is crafted to equip individuals with the requisite expertise and abilities to excel as financial planners. This course encompasses personal finance, investment strategies, retirement planning, taxes, estate planning and others.
Finishing a CFP Course is generally seen as a substantial progression in becoming a Certified Financial Planner.
CFP Course - Overview & Brief History
The Certified Financial Planner (CFP) course is a professional certification designed primarily for financial planning, wealth management, and personal finance. The Certified Financial Planner Board of Standards (CFP Board) in the United States, along with other recognized financial planning institutions across various nations globally, confer this certification.
The Certified Financial Planner designation was first introduced in the United States in the 1970s by the International Board of Standards and Practices for Certified Financial Planners (IBCFP). The aim was to establish a recognized standard of excellence and professionalism for financial planners who had a strong foundation in all aspects of financial planning and were committed to ethical conduct.
Initiated in 1979, the CFP certification has acquired substantial recognition and esteem for confirming the holder’s skill and competence in the extensive domain of financial planning.
Importance of CFP Designation in the Finance Industry
Importance of CFP Designation in the Finance Industry
Structure of the CFP Course
The Certified Financial Planner (CFP) course is a rigorous training program that delivers critical knowledge in various topics associated with financial planning. The key subjects covered in the program span from Financial Planning Process and Risk Management to Insurance Planning, Retirement Planning, Tax Planning, Investment Planning, Estate Planning, and Professional Conduct and Fiduciary Responsibility.
To secure the CFP certification, an individual must possess a bachelor’s degree. Also, a period of three years spent in professional roles that are relevant to financial planning is a must.
Apart from these, aspiring CFPs need to successfully clear the CFP examination, which assesses ability in 72 specific tasks inherent in integrated financial planning. The examination is structured to test the candidates’ potential to incorporate their financial planning skills in a comprehensive, unified manner similar to real-world scenarios.
CFP Course Eligibility
Regular Mode
- Anybody who has cleared 12th grade or equivalent in any stream
- Graduate & Undergraduate: B.Com, BFM, BBI, BMS, BBA etc.
- Post Graduates & Professionals: Education – CA Inter, CA, MBA, M.com etc
Qualification
Insurance, Mutual Fund Advisors, Stockbrokers, wealth managers, and relationship managers with relevant qualifications in eligible to take only one examination under challenge status mode.
Challenge Status
A postgraduate in Finance with 3 years of relevant experience can opt for taking only 1 exam i.e. Integrated Financial Planning, to acquire the CFP Certification.
CFP Course Syllabus
Retirement and Tax Planning Specialist Module
Risk and Estate Planning Specialist Module
Investment Planning Specialist Module
Financial Plan Construction & Integrated
Benefits of CFP Certification
Being a Certified Financial Planner (CFP) is accompanied by numerous advantages. Professionals taking the CFP course can expect to enhance their financial industry knowledge, improve their skillset, and gain a thorough comprehension of financial planning. This additional training grants them a competitive advantage and enriches their credibility among employers and clients.
Clients also reap benefits when working with a CFP. They can rest assured, that their finances are being managed by a professional who strictly complies with the ethics and professional conduct standards set by the CFP Board. This well-established integrity, combined with their extensive financial knowledge and planning skills, fosters trust and comfort among clients.
Advantages of CFP Certification
The CFP course offers a plethora of benefits. For working professionals, it not only sharpens their business insights and skills but gives them a thorough understanding of financial planning. Consequently, it empowers them with a competitive edge in the employment market and enhances their credibility with potential employers and clients.
For end users, the assurance of entrusting their financial matters to a Certified Financial Planner is priceless. CFP professionals have to comply with the rigorous ethics code and professional conduct standards established by the CFP Board. Their vast financial acuity and planning capabilities, combined with these standards, instil trust and assurance.
CFP Specialist Certifications
Certified Financial Planner CM Certification by FPSB.
After clearing any track exam and ethics module, you can apply for the below three certificates as well, with a fee of $100 for all.
Combination of 3 Specialist Certifications Plus CFP Certification
The CFP Curriculum is segmented into 4 levels. Upon completion of each level, FPSB awards an international certification for the level.
CFP Level 1 – Investment Planning specialist certification (International certification for investment professionals specializing in securities markets & portfolio management)
CFP Level 2 – Retirement and tax planning specialist certification (International certification for Retirement Planning & Individual Tax Planning
CFP Level 3 – Risk & Estate Planning Specialist certification (International Certification of Risk Management and estate planning specialist certification)
CFP Level 4 – Certified Financial Planner (Global Standard of Excellence in the field of Financial Planning & Wealth Management
Responsibilities of a CFP
Job Opportunities & Field
Potential Career advancement opportunities for CFPs
Remember that career advancement opportunities can vary depending on you individual goals, interests, and the evolving landscape of the financial industry. It’s important to assess your career objectives and pursue education and certifications that align with your desired path. Additionally, networking, mentorship, and a commitment to ongoing professional development can play a crucial role in your career progression as a CFP.
CFP Examination / Exam Format
The CFP exam consists of 170 multi-choice questions addressing areas included in the principles knowledge topics. There are 3 different types of questions: stand-alone, short scenario and case study.
- Stand-alone questions – are typically 2-3 sentences long, with 4 answer options to select from.
- Short Scenario questions – are associated with multiple choice questions – typically 3 questions per scenario.
- Case Study questions – are like scenario-based questions but longer, with the case study scenario covering several pages, and typically 8-12 questions per case study.
Test Time – You will be able to move through the exam at your own pace within each 3-hour test section. 3 hours are provided for the first 85 questions and another 3 hours for the last 85 questions. Each section is subdivided into two subsections. Candidates may take an optional unscheduled break after question 43 of the first subsection.
You will also be able to take a 40-minute break in between sections, as well as any unscheduled breaks, as needed.
CFP Board Practice Exam: A full-length, 170-question Practice Exam is available from CFP Board. The Practice Exam includes questions retired from previous exams, as well as some newer questions based on current content. Although these actual questions will not appear on any future CFP® exam, they are typical of the types of questions asked and represent the full range of topic areas covered on the current exam.
The CFP Board Practice Exam (a $249 value) is complimentary with your CFP® exam registration.
Average Salary & Other Perks or Benefits for a CFP
The average salary for a CFP can vary significantly depending on factors such as location, experience, and the specific role within the financial planning industry. However, we can provide you with a general idea of what you might expect.
Average salary for a CFP in India: On average, a CFP in India could earn a salary ranging from INR 3 Lakhs to INR 10 Lakjs or more per year. The range can vary significantly depending on the factors mentioned above.
Perks and Benefits for CFPs in India:
- Health Insurance
- Provident Fund (PF)
- Gratuity
- Performance Bonuses
- Professional Development
- Flexible work Arrangements
- Employee Assistance Programs (EAPs)
- Travel and Expense Reimbursement