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Old 01-16-2015, 01:17 AM   #1
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CFP Experience Question CFP Experience Question
Hello all,

I wanted to, in the near future, offer financial planning to the public as well as insurance. My agency is over 15 years old, and many clients have asked me about financial planning, and since I am not licensed, I do not offer planning services. I do, however, already have a 6 & 63. If I get my CFP certification, I do not have to sit for a 65 exam. Anyway, I am going through the steps for the prep for the CFP test, as I plan to sit for the exam in March. I have a question on the experience issue. I have been managing my portfolio for several decades, and it has done well. So well, I do handle/manage the investment accounts for multiple family members. Two of them also have trusts, so I manage them as well. I do not charge a fee, and just do the same thing for my portfolio as I do for theres. These has been for several years now. My returns have matched, or come pretty close to the S & P benchmark. Hence the reason why they asked me to look at their portfolios, and then ultimately take them over in managing them. The returns are healthy and balanced with in what the goals are for each account. Some are for retirement, which then, they are geared towards growth and capital appreciation. Others, which are need for income are more conservative and stable with steady income each month or quarter. The total value of the portfolio is above 5 million.

Can this count for the experience part?
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Old 01-16-2015, 08:06 AM   #2
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CFP Experience Question Re: CFP Experience Question
Originally Posted by adamsagency View Post
Hello all,

I wanted to, in the near future, offer financial planning to the public as well as insurance. My agency is over 15 years old, and many clients have asked me about financial planning, and since I am not licensed, I do not offer planning services. I do, however, already have a 6 & 63. If I get my CFP certification, I do not have to sit for a 65 exam. Anyway, I am going through the steps for the prep for the CFP test, as I plan to sit for the exam in March. I have a question on the experience issue. I have been managing my portfolio for several decades, and it has done well. So well, I do handle/manage the investment accounts for multiple family members. Two of them also have trusts, so I manage them as well. I do not charge a fee, and just do the same thing for my portfolio as I do for theres. These has been for several years now. My returns have matched, or come pretty close to the S & P benchmark. Hence the reason why they asked me to look at their portfolios, and then ultimately take them over in managing them. The returns are healthy and balanced with in what the goals are for each account. Some are for retirement, which then, they are geared towards growth and capital appreciation. Others, which are need for income are more conservative and stable with steady income each month or quarter. The total value of the portfolio is above 5 million.

Can this count for the experience part?
No. From the CFP Board's FAQ on the experience requirement:

11. May I report experience gained from providing personal financial planning services to family members and/or for managing my own finances?

No. Planning for yourself or immediate family members will not qualify toward CFP Board's Experience requirement.


However, if you've been doing insurance planning for 15 years, a lot of what you do on a day to day basis (depending on your business model) might meet some of their requirements:

Experience Requirement
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Old 01-16-2015, 08:18 AM   #3
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CFP Experience Question Re: CFP Experience Question
Originally Posted by adamsagency View Post
Hello all,

I wanted to, in the near future, offer financial planning to the public as well as insurance. My agency is over 15 years old, and many clients have asked me about financial planning, and since I am not licensed, I do not offer planning services. I do, however, already have a 6 & 63. If I get my CFP certification, I do not have to sit for a 65 exam. Anyway, I am going through the steps for the prep for the CFP test, as I plan to sit for the exam in March. I have a question on the experience issue. I have been managing my portfolio for several decades, and it has done well. So well, I do handle/manage the investment accounts for multiple family members. Two of them also have trusts, so I manage them as well. I do not charge a fee, and just do the same thing for my portfolio as I do for theres. These has been for several years now. My returns have matched, or come pretty close to the S & P benchmark. Hence the reason why they asked me to look at their portfolios, and then ultimately take them over in managing them. The returns are healthy and balanced with in what the goals are for each account. Some are for retirement, which then, they are geared towards growth and capital appreciation. Others, which are need for income are more conservative and stable with steady income each month or quarter. The total value of the portfolio is above 5 million.

Can this count for the experience part?
Being an insurance agent counts.
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Old 01-16-2015, 09:26 AM   #4
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CFP Experience Question Re: CFP Experience Question
I would go ahead and get your 65 first, it is a cake walk compared to the CFP process.
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Old 01-16-2015, 10:34 AM   #5
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CFP Experience Question Re: CFP Experience Question adamsagency is the thread starter for: CFP Experience Question

I believe, if you succeed in passing the CFP test, you do not have to site for the series 65. This was why I was just going to go forward with the CFP course and exam, then apply for the exemption.

For Insurance, since the late 90's, I've been writing and advising clients, commercial and personal, on life insurance, property insurance, health insurance, life insurance, and annuities. Does that count?

I just do not want to spend 5k for the course, sit for the tests, and then get denied due to this.

Is there any difference, in terms of designation between CFP and ChFC (aside from the familiarity of the designation and 10 hour test)?
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Old 01-16-2015, 11:08 AM   #6
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CFP Experience Question Re: CFP Experience Question
Originally Posted by adamsagency View Post
I believe, if you succeed in passing the CFP test, you do not have to site for the series 65. This was why I was just going to go forward with the CFP course and exam, then apply for the exemption.

For Insurance, since the late 90's, I've been writing and advising clients, commercial and personal, on life insurance, property insurance, health insurance, life insurance, and annuities. Does that count?
Yes

Originally Posted by adamsagency View Post
I just do not want to spend 5k for the course, sit for the tests, and then get denied due to this.

Is there any difference, in terms of designation between CFP and ChFC (aside from the familiarity of the designation and 10 hour test)?
In my opinion, yes, there is a difference.

The CFP Board of Standards will become a voluntary regulator of your entire business and everything you do.

Right To Use CFP Mark Revoked For Leader Of International Association Of Registered Financial Consultants, Edwin Morrow; CFB Board Acts On Complaint Against The Man Behind The RFC Designation

The ChFC has no such requirements. Only that you agree to abide by the professional pledge and code of ethics cannon of the American College:

The American College


While those are "internal" compliance issues, you will still be holding yourself out to the public as an expert with a higher standard, so you will be showing an implied fiduciary duty in all recommendations. Generally that isn't a problem, as long as you are making appropriate recommendations that fit your client's situations.

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Have you taken all the CFP module courses yet? You have to pass them all before you sit for the comprehensive exam.

Yet, you could get the study material and register to take the Series 65 and do it all for under $500.
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Old 01-16-2015, 11:25 AM   #7
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CFP Experience Question Re: CFP Experience Question
Originally Posted by adamsagency View Post
I believe, if you succeed in passing the CFP test, you do not have to site for the series 65. This was why I was just going to go forward with the CFP course and exam, then apply for the exemption.

For Insurance, since the late 90's, I've been writing and advising clients, commercial and personal, on life insurance, property insurance, health insurance, life insurance, and annuities. Does that count?

I just do not want to spend 5k for the course, sit for the tests, and then get denied due to this.

Is there any difference, in terms of designation between CFP and ChFC (aside from the familiarity of the designation and 10 hour test)?
So you want to avoid taking the 65 exam by spending 12-24 months taking the required courses for the CFP and then sitting for the insane CFP exam?

Just take the 65 and start advising.
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Old 01-16-2015, 11:31 AM   #8
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CFP Experience Question Re: CFP Experience Question
Originally Posted by sman View Post
So you want to avoid taking the 65 exam by spending 12-24 months taking the required courses for the CFP and then sitting for the insane CFP exam?

Just take the 65 and start advising.
It's kind of like going to med school to get around having to get a certificate in nursing aid isn't it?
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Old 01-16-2015, 11:32 AM   #9
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CFP Experience Question Re: CFP Experience Question adamsagency is the thread starter for: CFP Experience Question

I just want to add financial planning to what I am able to offer. I must receive two or three calls a week just on financial planning requests. Plus, many of my current clients ask for referrals since I do not offer it yet. It seems like I am leaving money on the table as well as possibly, losing business to an agency which offers insurance and investment services.

I have looked over the course material, not too concerned about it (my background was originally investments many moons ago). Just concerned about the experience issue. That was the only reason why I was considering the ChFC. I do not want to go through all that work and money just to hear they have an issue with my experience.

Or, are you suggesting getting the Series 65 to start advising clients once I hold that license, and therefore, in time, I would also earn that experience as well. If it helps, I also run the retirement plan for the agency. It's not that many people, but it is not family.

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Originally Posted by Stephen View Post
It's kind of like going to med school to get around having to get a certificate in nursing aid isn't it?
I would like the ability to offer financial planning to my clients. I believe I need either the CFP or ChFP designation in order to do so.
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Old 01-16-2015, 12:23 PM   #10
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CFP Experience Question Re: CFP Experience Question
Originally Posted by adamsagency View Post
I just want to add financial planning to what I am able to offer. I must receive two or three calls a week just on financial planning requests. Plus, many of my current clients ask for referrals since I do not offer it yet. It seems like I am leaving money on the table as well as possibly, losing business to an agency which offers insurance and investment services.

I have looked over the course material, not too concerned about it (my background was originally investments many moons ago). Just concerned about the experience issue. That was the only reason why I was considering the ChFC. I do not want to go through all that work and money just to hear they have an issue with my experience.

Or, are you suggesting getting the Series 65 to start advising clients once I hold that license, and therefore, in time, I would also earn that experience as well. If it helps, I also run the retirement plan for the agency. It's not that many people, but it is not family.

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I would like the ability to offer financial planning to my clients. I believe I need either the CFP or ChFP designation in order to do so.
What most of us are saying is to go ahead and get your 65, which will allow you to offer financial advice for a fee, either as a % based on assets, or an hourly or flat rate for planning.

I think that you are underestimating the amount of time and effort that it will take to get your CFP.

Another advisor in my firm has been working on his CFP for over a year now. He has been an FA for a a little over 10 years, has around $50m under management, and is a pretty sharp guy. He is still at the office every Saturday studying, and every few months has to go and take another test (it isn't just one test).
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