CFP Experience Question

One of my favorite stories is a friend of mine being introduced as having CLU, ChFC, CFP, CFA

Thats easily 5 to 7 years worth of study if not more. CFA is extremely difficult I have heard.

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He may not have thought designations were the end all but he had them and was good at what he did.

Exactly. And with that amount of industry education you better believe he learned something from it and it has helped his practice.

I know a guy who is a CFP, ChFC, & CLU, but he only uses the CFP behind his name. He said no one ever has a clue what the other two are, and showing people you have done the work for one is more than enough. He didnt want them for the title, he wanted them for the knowledge... he does over $200k in just life premium a year.
 
Incorrect. Check your facts. In order to be eligible for the CPA, an individual must be a practicing accountant with a license issued by the state to practice accountancy. Thus, every CPA by definition is in fact a licensed accountant, duly licensed by his or her respective state board of accounting.

By contrast, virtually NO state issued license is required for anyone to sit for the CFP exam. There is virtually no regulatory oversight whatsoever over CFP's.

Huge difference.

Huge.
in addition, I respectfully disagree that the private CFP Board somehow constitutes a higher standard than any particular state regulatory licensing authority. Might as well be the Better Business Bureau.

And yet, state exams can be waived based on having a CFP. According to many states, it allows you to charge planning fees without a 65/66.

You also have to be "actively practicing financial planning" which is another standard that parallels the CPA designation.

I don't get the BBB comparison.

I would also argue that the CFP board oversight is more stringent than many state-based organizations.

There is little love for CFPs on this forum but your analysis seems a little off base.
 
Thats easily 5 to 7 years worth of study if not more. CFA is extremely difficult I have heard. ---------- Exactly. And with that amount of industry education you better believe he learned something from it and it has helped his practice. I know a guy who is a CFP, ChFC, & CLU, but he only uses the CFP behind his name. He said no one ever has a clue what the other two are, and showing people you have done the work for one is more than enough. He didnt want them for the title, he wanted them for the knowledge... he does over $200k in just life premium a year.

Some people are just real good at studying and test taking. My wife crammed for her CPA exam for around two years. But she only studied for the CLU, ChFC and CFP for a few months each and passed each on her first try. Her working knowledge of insurance and financial planning is no where near a master level. She is just real good at studying and taking tests.

When her head gets too big though I have to remind her that she had to take the life & health licensing exam twice. I got that one with my first pass.

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Some states allow CFP to waive taking a CE course. Big deal. What does that prove? Other than waiving a CE course or two, exactly which "state exam" can be waived and in which state(s)? You are clearly inferring that some states allow CFP's to bypass licensing exams. Please provide specifics. In particular, precisely which state or states allow an individual to charge fees for investment advice without a 65 or 66? That's news to me. To clarify my original post, I am not questioning the material required to be studied to sit for the CFP. In fact, I have a Masters degree from a major university in financial planning, which allows me to sit for the CFP should I desire to do so. My point is that the CFP certification itself, standing alone, provides absolutely no legal authority for the holder to charge fees, sell insurance, provide legal advice, tax advice, or do virtually anything that would require a license issued by a regulatory authority, either on the state or federal level.

In our state (Indiana) anyone with the CFP doesn't have to pass any exam to have the 65 & 66. They just fill out some forms and they have it.

Going from memory but I'm certain that is accurate.
 
Other than waiving a CE course or two, exactly which "state exam" can be waived and in which state(s)? You are clearly inferring that some states allow CFP's to bypass licensing exams. Please provide specifics. In particular, precisely which state or states allow an individual to charge fees for investment advice without a 65 or 66? That's news to me.

I didn't infer it, I stated it. Here you go:

http://www.cfp.net/for-cfp-professi...ources/state-licensing-requirement-exemptions
 
Incorrect. Check your facts. In order to be eligible for the CPA, an individual must be a practicing accountant with a license issued by the state to practice accountancy. Thus, every CPA by definition is in fact a licensed accountant, duly licensed by his or her respective state board of accounting.

By contrast, virtually NO state issued license is required for anyone to sit for the CFP exam. There is virtually no regulatory oversight whatsoever over CFP's.

Huge difference.

Huge.
in addition, I respectfully disagree that the private CFP Board somehow constitutes a higher standard than any particular state regulatory licensing authority. Might as well be the Better Business Bureau.

Did you even bother to read my post before responding???

Do you know anything at all about the qualifications required to become a CFP?

Have you ever read the CFP Code of Ethics?

Have you ever read the disciplinary procedures for CFP ethics violations?

Did you know that the CFP Board can report Ethics violations and disciplinary actions to the appropriate state regulatory authority for further action?

Did you know that the CFP Board publicly publishes all disciplinary actions on a yearly basis?

Did you know that the CFP Boards definition of a Fiduciary is stricter and more comprehensive than both the SEC and the DOL.

You obviously did not know any of this since you deleted your post.




Some states allow CFP to waive taking a CE course. Big deal. What does that prove? Other than waiving a CE course or two, exactly which "state exam" can be waived and in which state(s)? You are clearly inferring that some states allow CFP's to bypass licensing exams. Please provide specifics. In particular, precisely which state or states allow an individual to charge fees for investment advice without a 65 or 66? That's news to me. To clarify my original post, I am not questioning the material required to be studied to sit for the CFP. In fact, I have a Masters degree from a major university in financial planning, which allows me to sit for the CFP should I desire to do so. My point is that the CFP certification itself, standing alone, provides absolutely no legal authority for the holder to charge fees, sell insurance, provide legal advice, tax advice, or do virtually anything that would require a license issued by a regulatory authority, either on the state or federal level.

Almost all (if not all) 50 states accept the CFP in lieu of the 65 or 7/66. Many states accept the ChFC and CFA in lieu of the 65 as well. You still have to register with the state and are subject to all state (or SEC if your over $100mil) regulations.



To clarify my original post, I am not questioning the material required to be studied to sit for the CFP. In fact, I have a Masters degree from a major university in financial planning, which allows me to sit for the CFP should I desire to do so.

I respectfully disagree that the private CFP Board somehow constitutes a higher standard than any particular state regulatory licensing authority. Might as well be the Better Business Bureau.

You compare it to the BBB but you are not questioning the material? Really??

One you pay a fee and you get in. The other requires 30 some odd hours of in depth study, followed by a 6 hour exam, followed by adhering to 3 sets of regulations set by the CFP Board (Practice Standards, Code of Ethics, Rules of Conduct).

Then if they do not abide by all of those rules they are subject to CFP Boards Disciplinary Rules and Procedures


So to sum things up you have no clue what you are talking about. Again, the CFP is almost exactly the same as being a CPA .... and actually the CFP requires the applicant to have the greater amount of experience (3 years compared to 1).

And since you did not seem to fully ready my earlier post that you seemed to reply to, I do not have a CFP nor do I plan to sit for the CFP.

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Some people are just real good at studying and test taking. My wife crammed for her CPA exam for around two years. But she only studied for the CLU, ChFC and CFP for a few months each and passed each on her first try. Her working knowledge of insurance and financial planning is no where near a master level. She is just real good at studying and taking tests.

When her head gets too big though I have to remind her that she had to take the life & health licensing exam twice. I got that one with my first pass.
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Well at least you have something to hold over her :)

I agree, some people are really good at studying and test taking. Also, some people just really understand the industry too.

But for the majority of people that is at least 5 years worth of study. I hear the CFA is an absolute monster. But CFAs can also be highly sought after in the investment world.
 
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