The Certified Financial Planner (CFP) designation is now considered a symbol of excellence and competence by businesses and financial professionals around the world. Many new investors and individuals have now understood the need for such professionals who have been awarded this certification. The CFP course curriculum is considered very comprehensive and the certification a tough nut to crack. Achieving CFP certification not only increases a candidate’s professional knowledge, but the prestige associated with the certification gives your own business and career a much-needed boost. The CFP certification also guarantees an attractive salary package and additional income through consultations. Professionals may charge an hourly rate for offering financial planning advice. Another advantage of the CFP designation is that certified professionals gain the ability to assess their role in a client’s financial situation. They can also visualize themselves in the financial profession they want as they have a clear understanding of financial concepts. A stockbroker, an investor, a banker, an insurance professional and seemingly anyone who is associated with the financial sector can gain tremendously from CFB certification.
Although the CFP exam is difficult, good study material and a willingness to work hard can help you.
The applicant must commit to the exam to crack it successfully.
About the CFP exam and tips to crack it
Students who have decided to go for CFP certification must have been fully aware of the exam pattern and course content. As the course is very extensive, an average student usually requires at least 1,000 hours of study in order to complete the course and the exam.
The CFP exam covers 5 components which are:
1. Insurance with modules on educational planning and ethics
2. Investment planning
3. Tax Planning
4. Retirement planning
5. Estate Planning
The CFP test is 10 hours long and is divided into one four-hour session on Friday and two three-hour sessions on Saturday. Students must answer 285 multiple-choice questions, including two case studies. Case studies expect students to apply course material to real-time examples. The exam is held three times a year, in the months of March, July and November. FBSBI conducts this exam in India. CFP is considered as one of the most sought after certification courses in Finance.
CFP Exam Tips
- Understand rather than memorize concepts.: In the Certified Financial Planning certification exam, it is important that the concepts are understood correctly, as the questions are based on case studies and students must apply these concepts to real-life situations.
- try to figure out CFP board reasoning: Students should learn how the board arrives at an answer by reviewing previous work. This will help them solve the questions correctly.
- Keep your first answer your final answer: Once you get to an answer, don’t change it unless you find a misconception.
Find the best CFP study materials: Always rely on trusted study material for CFP course and certification.