Why You Should Pursue the CFP Certification (2024)

FAQs

Why You Should Pursue the CFP Certification? ›

Earning your CERTIFIED FINANCIAL PLANNER® certification is the most beneficial step you can take to accelerate your career and better serve your clients. As a CFP® professional, you'll enjoy a rewarding, in-demand career while helping people achieve their financial dreams.

CFP® professionals are more productive and more satisfied in their careers and at their firms than advisors without their CFP® certification. Consumers are also more aware of the CFP® certification than other certifications and designations, and are more satisfied when working with a CFP® professional.

CFP® professionals have met extensive training and experience requirements, and commit to CFP Board's ethical standards that require them to put their clients' interests first. That's why partnering with a CFP® professional gives consumers confidence today and a more secure tomorrow.

Passing the CFP® exam demonstrates that you've attained the knowledge and competency necessary to provide comprehensive personal financial planning advice. The CFP® exam is a 170-question, multiple-choice test that consists of two 3-hour sessions over one day.

Not everyone needs help with their finances, but for those who do, having a CFP in your corner can be invaluable. If you aren't sure how to organize your finances, navigate investing or balance your financial priorities, a CFP can help. The Kitces Report. How Financial Planners Actually Do Financial Planning (2023).

A financial plan can help you steadily chip away at debt and minimize fees to free up your money to live your life. It determines which debts are costing you the most — not just the amount you owe now, but the amount you owe with interest over time .

Focused on memorization and not learning

While insurance and securities licensing exams both heavily focus on memorization, the CFP^® exam is all about applying knowledge to real situations you could encounter on the job. The CFP^® exam includes two important case studies with 8-12 questions per case study typically.

Financial advisors have significant responsibility because they can directly influence their clients' financial future. The passion for interacting with people and helping them with their financial goals is an ideal attribute that many employers seek.

A CFP® professional can help you set your financial priorities when you have competing needs for limited money—such as juggling saving for your kids' education costs and saving for your own retirement.

Can CFP make a lot of money? ›

While ZipRecruiter is seeing salaries as high as $139,154 and as low as $60,201, the majority of Cfp salaries currently range between $85,900 (25th percentile) to $113,000 (75th percentile) with top earners (90th percentile) making $135,699 annually in California.

It also takes considerable time and effort to build a clientele and is considered a high-stress job by many, even in the best of times.

The daily schedule of a financial advisor includes prospecting, servicing current clients, administrative tasks, financial planning, and continuing education. In addition to providing financial guidance, a large part of a financial advisor's career is managing relationships.

Working with a CFP® professional can help you find the path to achieving your financial goals. Your goals may evolve over the years as a result of shifts in your lifestyle or circ*mstances such as an inheritance, career change, marriage, house purchase or a growing family.

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. Within the testing period from October 31 to November 7, a grand total of 3,386 individuals sat for the CFP® Certification Exam.

While not everyone needs an ongoing relationship with a certified financial planner, pretty much everyone can benefit from having a consultation — and some initial input — with a CFP. Especially since there are a variety of concerns that a financial professional can assist with.

A Range of Opportunities

Financial Advisor ranks in the top ten of best business jobs, and there are also many other career routes you can pursue in the field. Working in financial planning can mean finding a job at a large bank or credit union, a nationwide wire house, or at a small independent firm.

​It really depends on your preferred career route: if you're into financial planning, CFP is the clear choice. If you're less sure but keen on a career in finance, perhaps CFA is a better choice for a broader finance base before you decide, although it is notably a more difficult qualification to get.

How much does a Certified Financial Planner make? The estimated total pay for a Certified Financial Planner is $240,997 per year, with an average salary of $102,733 per year.