Certified Financial Planner Education

Certified financial planner education is quite extensive and for good reason. The planner takes the incomes of individuals, evaluates them, and comes up with plans that will alter their futures forever. In other words, there is a lot in the hands of the professional, so they have to know what it is they are doing.

Many certified financial planners are educated to some degree through the Certified Financial Planner (CFP) Board of Standards. However, they obtain an education from other means as well. These other means include college and sometimes more than one with a major in finance or another related field. They will then take this education and apply it to the 100 topics that are covered by the CFP. [1]

The CFP is quite methodical when certifying individuals. The certified financial planner education that planners have been through before is well extended by what the CFP requires a planner to complete in order to become certified. It is good that the requirements are so strict because that means customers are getting someone who knows what they are doing.

CFP Topics

The topics that the CFP that is a part of certified financial planner education covers virtually everything, which is why there are nearly 100 topics total. They include the general principles of planning, employee benefits planning, insurance planning and risk management, income tax planning, investment planning, estate planning, and retirement planning. All of these areas can be covered by one certified financial planner to their customers. The education is quite extensive because a person has the CFP's name on their certification and the CFP has to preserve their own reputation. [1]

The education that these individuals receive covers financial planning as a whole since there are a lot of areas that are covered. In other words, a single individual can have so many areas to their finances. They may be looking into buying a home, a car, they may be in extreme debt, they may be fighting to pay their many credit accounts. In the end, they know that there are a lot of goals that they need to meet, but they are not going to meet them at the rate they are going.

When planning for such events as parenthood, retirement, marriage, and even divorce, the certified financial planner education that a planner has to go through comes in quite useful. Everyone's situation is different, so the individual doing the planning has to apply their education to that unique situation in order to make it work for the individual. If it doesn't work, especially when there are no risky investments involved, the end result could be bad for the customer.

CFP Requirements

The CFP does have a variety of requirements. First, they suggest that individuals weigh their education against the topics that they are going to be tested on. If they do not have a significant educational background on it, then they need to enhance their certified financial planner education by taking any and all necessary classes. Failure to do so could result in failure of the exam, which means failure to become certified.

An individual doesn't have to have their college degree before they take the exam, however. If an individual passes the exam before finishing their bachelor's degree, they have five years to do so after passing the exam. [1] Although a person may pass the exam without having their certified financial planner education completed, they can't complete their certification until they complete their degree. There is also work experience that comes into play as well. Both have to be completed to become certified.

The certified financial planner education that an individual receives is very important. It is not only important for the certification process, but for the customers. For instance, the financial planner needs to know how to advise their customers on their IRA contributions or how to rollover their Roth IRA. They need to know what to tell their customers if their lives are changing and how not investing enough in their 401k can hurt their future.

Certified financial planner education goes a long way in making sure customers are taken care of. Because it is overseen by the CFP, you can count on the individual working on your personal finances to be someone who has been through a lot to get where they are. Only those serious about their profession are going to do what these individuals do.

So when you need help, know that the certified financial planner education that planners go through is quite extensive so that they can serve you in every aspect of your financial life. Their goal is to make you as successful as possible in your future. That way you can be comfortable and live well.

[1] http://www.cfp.net/become/education.asp 08-08-2010