CFP Preparation

The certified financial planner (CFP) designation is difficult to achieve, but those three little letters can mean big money if you're a financial adviser. According to research done by The American College, advisers who have a professional credential, such as CFP, earn an average of 28 percent more than their noncredentialed peers. The most difficult part of CFP preparation is passing the required exam. Statistics from the CFP Board show the November 2010 test pass rate was only 51.3 percent.

Instructions

    • 1

      Get educated. Enroll in a CFP Board-registered financial planning program. Programs are at least 15 semester credit hours and generally take 18 to 24 months to complete, according to the board. You must also have a bachelor's degree. You must have a comprehensive and current understanding of close to 100 financial planning topics, outlined on the CFP topic list, prior to taking the exam. The current topic list can be found on the CFP Board website (cfp.net). If you have a weakness in any of the topics, it is recommended to take additional courses that specifically target those areas.

    • 2

      Take the CFP exam. Register for the exam through the cfp.net website. You must prove you have completed your education before sitting for the exam. Exemptions from the education requirement are granted for licensed attorneys and individuals who hold a Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU), Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA) designation, or a Ph.D. in business, economics or business administration.

    • 3

      Report your work experience to the CFP Board. The board will send you instructions on filling out the reporting form after you pass the exam. The requirement is three years of full-time financial work experience or the equivalent in part time (defined as equal to 6,000 hours). The work experience must have occurred within 10 years before passing the exam or within five years after passing the exam.

    • 4

      Sign the CFP Board's Certification Application, found on the cfp.net website. This application covers the CFP Board's code of ethics and practice standards. Before being granted permission to use the CFP certification mark, you must agree to adhere to the board's rules and standards by signing this document.

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