How do you become a chartered financial planner? (2024)

FAQs

How do you become a chartered financial planner? ›

To become a certified financial planner, you need to complete the certified financial planner (CFP) certification process and ultimately obtain the CFP certification. You need to complete coursework on financial planning through a CFP board-registered program, have a bachelor's degree, and pass the CFP exam.

The CFP® exam is a 170-question, multiple-choice test that consists of two 3-hour sections during one day. Each section is divided into two distinct subsections. The exam includes stand-alone questions, as well as questions associated with case studies.

Everyone's schedule varies, but as a rule of thumb, you should devote about 15+/- hours per week studying and preparing for the exam. It's easy to get discouraged when looking at the CFP® exam pass rates, which typically hover around the 60%-65% percentile for first-time takers.

The organization that offers the CFP, the CFP Board, not only requires that you earn a bachelor's degree, but also that you cover a specified set of coursework in 9 different areas for at least 15 credits in areas that the Board deems necessary to effective financial planner education.

Chartered Status is a professional learning and accreditation pathway supporting career-long development. To be awarded Chartered Status you will need to complete a series of assessment units, showcasing your professional expertise across a range of areas.

Jordan Cruse, who's career in financial services began in 2017 when he joined the firm at just 16 years old, has attained his CII Level 6 Advanced Diploma in financial planning. Cruse stated that, following his chartered status, he now plans to work towards his CF8 and CF6 exams in order to become a chartered fellow.

What is CFP Board's policy for retaking the CFP® exam? You may attempt the CFP® exam a lifetime maximum of 5 times.

The CFP Board exam (the exam) consists of 170 questions. Anecdotally, the average exam has from 8 to 12 calculation questions which rank from moderately difficult to highly difficult. It's been said (but not by us!) that studying calculations should not be a high priority.

The pass rate for the CPA Exam was 54% overall. Comparatively, CFP is easier than CPA. The historical pass rate has been above 60%, which indicates that the tests are of a difficulty level that is considered to be moderate.

CFP Exam Registration

If you register within the first six weeks of the registration window, the fee is $825. If you register between two and seven weeks before the registration window closes, the fee will be $925. If you register in the last two weeks of the window, the fee is $1,025.

Is the CFP harder than the bar? ›

I studied harder for the CFP exam both times than I ever studied for any bar exam. Despite my preparation, both times, I found myself struggling and shocked by the breadth and depth of the material tested. It's truly a demanding and challenging exam.

This average encompasses a wide range, with salaries starting as low as $61,000 and extending up to $141,000. The data indicates that the majority of CFP salaries fall between $87,000 and $114,500, while the top earners in the field make approximately $137,500 annually.

Here are some of the most common paths to CFP® certification. Typically, it takes 18-24 months to become a CFP® professional, but the certification process offers flexibility so you can make it work for you.

CFP Board recommends you spend at least 250 hours studying for the exam. While that sounds overwhelming, the time goes pretty quickly between pre-study, the Candidate Handbook, required education courses, question bank time, review, practice exams, and your own preparations.

– The CFA Institute says a CFA charter holder can earn between $126,000 and $177,000. – Comparably.com data from Feb. 2023 shows the average CFP salary in the U.S. is $121,099. The total range is between $39,300 and $187,200.

CFA charter exam topics are broadly categorized as financial concepts, portfolio management, financial analysis, and accounting. Comparatively, the CFP is easier to obtain than the CFA charter. The historical pass rate has been above 60% and looking as recent as 2022, it is around 46%.

The CII's 'Chartered Financial Planner' status recognises organisations that are committed to professionalism, ethical practice, knowledge, and excellence. A certified financial planner (CFP) refers to the certification owned and awarded by the Certified Financial Planner Board of Standards.

Both credentials are widely recognized in the financial services industry, but CFP® certification is the standard of excellence in personal financial planning. It signifies that you are trained and experienced in comprehensive financial planning that helps your clients chart a course for a secure future.