Need a job? How does a career as a Certified Financial Planner sound? The 2001 issue of Jobs Rated Almanac listed financial planning as the number one job in the country, and since then the career has become even more important. Companies want a planner with a commitment to competency, one that will help them out with their finances. And, as a financial planner, you’ll want to have an established certification that will set you apart in a globally expanding profession. After passing the test, you’ll be equipped to provide personalized services to clients while maintaining high levels of financial planning professionalism and expertise.
Preparation for the test.
The FPSC offers the test to expedite the evolution of the financial planning profession by coordinating the development, enforcement and promotion of high competency and ethical standards. In order to be a designated CFP, you must pass four steps. In order to prepare yourself for the CFP examination, you have to enroll in and pass an accredited education program and meet work experience requirements. After passing the test, you must be educated on the ethics system financial planners hold to and attest your compliance with the official code of ethics.
Registration for the test is by application only, and closes one month prior to the test date. The test must be taken within five years from completion of the education course.
The official CFP examination.
The CFP examination is offered three times yearly, in March, July and November. The complete examination fee of $595 is due at application. It is available in two languages (English and Spanish). The actual test is ten hours long, with a four hour session on Friday and two three-hour sessions on Saturday. The morning session is all multiple-choice questions, and the afternoon session features case studies followed by related multiple-choice questions. Topics for the test include estate planning, investment and retirement planning, and general financial principles. The test is designed to assess the prospective financial planner’s knowledge of financial principles in relation to actual situations.
When you arrive to take the test, make sure you have your acceptance letter for your application, as well as photo identification. You can also bring #2 pencils, erasers, and a financial calculator.
I passed….Now what?
The results of your test will be mailed directly to you, four to six weeks after completion of the CFP examination. If you are successful, you’ll also receive an application for certification and other materials. Then you are on your way to being an even more successful financial planner!
Passing the CFP examination will be a great indicator of how serious you are as a financial planner. Your certification will show that you are devoted to a higher level of planning, and that you are interested in a continuing education in your field. After you’ve passed the test, market yourself! Make sure people realize the extra work you’ve put in. Businesses obviously need financial planners to make their businesses run, but normal households can use one as well to manage and plan their finances. Find a niche you like, whether it’s investments, retirement plans, or business accounting, and market yourself as an expert in the field. You’ve earned it!
By Lyndsey Payzant