what is a cfp certification

what is a cfp certification

1 year ago 68
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A Certified Financial Planner (CFP) is a professional certification mark for financial planners. It is considered the gold standard in the financial planning industry. The certification is managed by the Certified Financial Planner Board of Standards, Inc. (CFP Board), which was founded in 1985 as a 501(c)(3) non-profit organization. To receive authorization to use the designation, a candidate must meet education, examination, experience, and ethics requirements and pay an ongoing certification fee.

The requirements to become a CFP are some of the most difficult and stringent in the financial industry. The candidate must have a bachelors degree (or higher), or its equivalent in any discipline, from an accredited college or university. The bachelors degree requirement may be completed after passing the CFP exam (within five years) and is not a requirement to be eligible to take the CFP Board Certification Examination. Students must master a curriculum of approximately 100 topics on financial planning. The CFP Certification Examination is a multiple-choice, computer-based exam consisting of 170 questions, broken into two sessions separated by a 40-minute break.

CFP professionals meet rigorous education, training, and ethical standards. They must have several years of experience related to financial planning, pass the CFP exam, and adhere to a strict ethical standard as set by the CFP Board of Standards. CFPs are there to help individuals manage their finances, including a variety of needs such as investment planning, retirement planning, insurance, and education planning. They are fiduciaries of their clients assets, meaning that they make decisions with their clients best interests in mind.

In summary, a CFP certification is a professional certification mark for financial planners that is considered the gold standard in the financial planning industry. To become a CFP, a candidate must meet education, examination, experience, and ethics requirements and pay an ongoing certification fee. CFP professionals meet rigorous education, training, and ethical standards and are fiduciaries of their clients assets. They help individuals manage their finances, including a variety of needs such as investment planning, retirement planning, insurance, and education planning.

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