Top 10 Financial Planner Certifications

Certifications are important for financial planners in the job market because they demonstrate a level of expertise and knowledge in the field. Financial planners with certifications have proven that they possess the necessary skills to provide sound advice and guidance to their clients. Certifications also show potential employers that the candidate is committed to their profession and has taken the time to stay up-to-date on industry trends and regulations. Having a certification also provides credibility, as it demonstrates that a financial planner has met certain standards set by professional organizations. Ultimately, certifications give financial planners an edge in the job market, as they can prove their qualifications to potential employers.

The purpose of this article is to review the most beneficial certifications for Financial Planners and discuss how they can help advance a financial planner's career.

What are Financial Planner Certifications?

Financial planner certification is a professional designation that recognizes an individual’s expertise in providing financial planning services. It provides assurance that the person has met certain standards of education, experience, and ethics in the field of financial planning. Those who hold this certification must demonstrate their knowledge of tax laws, insurance, investments, estate planning, retirement planning, and other topics related to personal financial management.

Having a financial planner certification can help individuals gain credibility and trust with potential clients. It also shows that they have the necessary qualifications to provide sound advice on financial decisions. Holding a certification also indicates that an individual has taken the time to stay up-to-date on industry trends and regulations. This can give those seeking advice peace of mind knowing they are working with someone who is knowledgeable about the current environment and can provide appropriate guidance for their particular situation.

In addition to gaining credibility from potential clients, having a financial planner certification also provides access to additional resources such as conferences and continuing education courses. These can be invaluable for staying up-to-date on new developments in the field and remaining competitive in their practice.

Pro Tip: Invest in getting a financial planner certification. This will give you the necessary knowledge and experience to provide sound financial advice to your clients. Additionally, having a certification demonstrates your commitment to providing quality services and can help you stand out from the competition.

Related: What does a Financial Planner do?

Top 10 Financial Planner Certifications

Here’s our list of the best certifications available to Financial Planners today.

1. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional designation given by the Certified Financial Planner Board of Standards, Inc. (CFP Board). The CFP designation is the most widely recognized financial planning credential in the United States and is held by more than 80,000 professionals worldwide.

To obtain the CFP certification, you must meet certain educational, experience and ethical requirements set by the CFP Board. To become certified, you must first complete a bachelor’s degree from an accredited college or university that meets the CFP Board’s education requirements. After completing your undergraduate degree, you must then complete a CFP Board-approved financial planning education program that includes coursework in financial planning topics such as investments, insurance, taxes, retirement planning and estate planning.

In addition to completing an approved education program, applicants for the CFP certification must also have at least three years of full-time experience in personal financial planning or related fields before they can take the exam.

The final step to becoming a Certified Financial Planner is passing the two-day CFP Certification Examination administered by Prometric Testing Centers throughout North America on behalf of the CFP Board. The exam consists of two parts: a multiple choice section and an essay section.

The cost of obtaining your CFP certification varies depending on your individual circumstances. Generally speaking, it will cost between $1,500 and $2,500 to become certified depending on how much study material you purchase for preparation for the exam and other associated costs such as registration fees and travel expenses to take the exam.

2. Chartered Financial Consultant (ChFC)

Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College of Financial Services. It is designed to recognize individuals who have achieved a high level of knowledge and experience in financial planning, insurance, investment management, estate planning and taxation.

To become a ChFC, an individual must complete eight college-level courses covering the following topics:

• Financial Planning Process
• Risk Management & Insurance Planning
• Investment Planning
• Income Tax Planning
• Retirement Planning & Employee Benefits
• Estate Planning
• Advanced Case Analysis & Professional Conduct
• Capstone Course in Financial Planning.

The courses are offered online or through traditional classroom instruction at The American College of Financial Services. Each course requires approximately 40 hours of study time and can be completed in as little as four months if taken online. Once all eight courses have been completed, the student must pass a comprehensive two-hour exam administered by The American College of Financial Services. Upon passing the exam, the individual will be awarded their Chartered Financial Consultant (ChFC) designation.

The cost for the entire program ranges from $3,000 to $4,500 depending on whether you take the courses online or in person.

3. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation given by the CFA Institute, an international organization that sets standards for investment professionals. The CFA designation is highly respected in the financial industry and is considered a mark of excellence among investment professionals.

The CFA program consists of three levels of exams, each requiring approximately 300 hours of study. Candidates must pass all three levels to become a CFA charterholder. It typically takes four to five years to complete the program, depending on how quickly you can study and pass the exams.

To get started with the CFA program, you must first become a member of the CFA Institute and register for the exams. You will then need to purchase study materials and set aside time to study for each exam. Once you have completed all three levels, you will be eligible to receive your charter as a Chartered Financial Analyst (CFA).

The cost of becoming a CFA charterholder varies depending on where you are located and how much studying material you purchase. Generally, it costs around $3,000-$4,000 USD in total, including exam registration fees, membership dues, and study materials.

4. Certified Investment Management Analyst (CIMA)

Certified Investment Management Analyst (CIMA) is a professional designation for investment professionals who specialize in portfolio management and financial planning. It is administered by the Investments & Wealth Institute, a nonprofit organization that provides education, research and certification programs to the global financial services industry.

The CIMA program consists of two parts: a self-study program and an exam. The self-study program includes reading materials and practice exams to help prepare for the exam. The exam covers topics such as asset allocation, portfolio construction, risk management, performance measurement, financial planning, taxation and ethics.

It typically takes between six months to one year to complete the CIMA program. Candidates must have at least three years of full-time professional experience in investments or finance in order to be eligible for the exam.

The cost of the CIMA program varies depending on whether you take it through an educational institution or through the Investments & Wealth Institute directly. Through an educational institution, it typically costs around $4,000-$5,000 USD for tuition and fees. Through the Investments & Wealth Institute directly, it costs $1,995 USD for tuition plus $595 USD for registration fees.

5. Certified Public Accountant Personal Financial Specialist (CPA/PFS)

A Certified Public Accountant Personal Financial Specialist (CPA/PFS) is a designation given by the American Institute of Certified Public Accountants (AICPA) to CPAs who have demonstrated knowledge and experience in personal financial planning. The CPA/PFS credential requires CPAs to demonstrate their knowledge and experience in personal financial planning through a combination of education, examination, and experience.

To become a CPA/PFS, you must first obtain your CPA license. To do this, you must meet the requirements for licensure in your state, which typically include passing the Uniform CPA Exam, completing 150 semester hours of college coursework, and having two years of public accounting experience.

Once you have obtained your CPA license, you can apply for the CPA/PFS credential. To do so, you must complete an additional 30 hours of personal financial planning coursework from an AICPA-approved program and pass the Personal Financial Planning Exam administered by the AICPA. You also need three years of full-time personal financial planning experience or five years of part-time personal financial planning experience.

The cost to obtain the CPA/PFS credential depends on several factors such as how many courses are required for completion and whether or not you need to take the exam. Generally speaking, it will cost between $2,000-$3,000 to obtain the credential.

6. Retirement Income Certified Professional (RICP)

Retirement Income Certified Professional (RICP) is a professional designation offered by The American College of Financial Services. It is designed to provide financial advisors with the knowledge and skills necessary to help clients plan for retirement income.

The RICP program consists of three courses: Retirement Income Planning, Taxation & Risk Management, and Distribution Strategies. Each course is taught online over the course of six weeks. In order to receive the RICP designation, students must complete all three courses and pass a comprehensive exam.

To get the RICP designation, you must first apply to The American College of Financial Services and pay a fee of $1,299. After completing the application process, students will be enrolled in the program and can begin taking classes immediately. Students who successfully complete all three courses and pass the exam will receive their RICP designation within four to six weeks after completion of the program.

The cost of obtaining the RICP designation is $1,299 which covers all three courses as well as the exam fee.

7. Accredited Investment Fiduciary (AIF)

Accredited Investment Fiduciary (AIF) is a professional designation that signifies an individual has met the standards of knowledge, experience, and skill set necessary to provide investment advice as a fiduciary. A fiduciary is someone who has a legal responsibility to act in the best interests of their clients. An AIF must demonstrate a commitment to upholding the highest ethical standards and adhering to a strict code of conduct when providing investment advice.

It typically takes 6-9 months to become an AIF, depending on how quickly you are able to complete all the requirements. To become an AIF, you must meet certain education and experience requirements and pass an exam administered by the Investment Adviser Certification Organization (IACO). You must also hold a Series 65 or 66 license from the Financial Industry Regulatory Authority (FINRA).

The cost of becoming an AIF varies depending on which organization you choose to pursue your certification through. Generally speaking, it can range anywhere from $2,000 - $5,000 for tuition fees and associated costs such as books and materials.

8. Chartered Retirement Planning Counselor (CRPC)

Chartered Retirement Planning Counselor (CRPC) is a professional designation awarded by the College for Financial Planning. It is designed to help financial advisors provide comprehensive retirement planning advice to their clients.

To obtain the CRPC designation, individuals must complete a series of courses and exams administered by the College for Financial Planning. The program consists of seven courses that cover topics such as retirement income planning, Social Security, investments, taxation, and estate planning. The total program takes about nine months to complete.

In order to become a CRPC, individuals must have at least three years of experience in the financial services industry or related field and pass an exam administered by the College for Financial Planning. In addition, applicants must also adhere to the college's code of ethics and professional responsibility standards.

The cost of obtaining the CRPC designation varies depending on whether you are taking individual courses or enrolling in the full program. Individual courses range from $400-$500 each while enrollment in the full program costs around $2,000-$3,000.

9. Certified Retirement Counselor (CRC)

Certified Retirement Counselor (CRC) is a professional designation awarded by the International Foundation for Retirement Education (InFRE). It is designed to recognize professionals who have demonstrated a comprehensive understanding of retirement planning and related topics.

To become a Certified Retirement Counselor, applicants must first meet the eligibility requirements, which include having at least three years of experience in the retirement planning field and completing an approved course of study. The course includes topics such as Social Security benefits, pension plans, tax implications of retirement savings, estate planning, and more. After completing the coursework, applicants must pass an exam to receive their certification.

The cost of the program varies depending on the institution offering it. Generally speaking, it can range from $500 to $1,000 for both tuition and materials. The length of time it takes to complete the program also varies depending on the institution but typically takes anywhere from six months to one year.

Once certified, CRCs are expected to adhere to InFRE's code of ethics and standards of practice when providing advice to clients. They must also complete continuing education credits every two years in order to maintain their certification status.

10. Chartered Life Underwriter (CLU)

Chartered Life Underwriter (CLU) is a professional designation awarded by the American College of Financial Services. It is the highest professional designation for life insurance professionals, and it is recognized as the standard of excellence in life insurance and financial services.

The CLU designation requires completion of a series of courses that cover topics such as estate planning, retirement planning, investments, taxation, risk management and ethics. The courses are offered online or through traditional classroom instruction. To obtain the CLU designation, individuals must complete eight required courses and pass three examinations.

It typically takes about two to three years to complete all of the requirements for the CLU designation. The cost of obtaining the CLU designation varies depending on where you take your classes and which exams you take. Generally speaking, it can cost anywhere from $2,000 to $3,000 to obtain the CLU designation.

Do You Really Need a Financial Planner Certificate?

The short answer to this question is, it depends. While having a financial planner certificate does demonstrate that you have the knowledge and skills necessary to help people with their finances, it is not always necessary to have one in order to practice as a financial planner.

Whether or not you need a financial planner certificate depends upon your goals and where you are in your career. If your goal is to work for a large firm as an independent advisor, then you would likely need to obtain one in order to be taken seriously. On the other hand, if you are just starting out and want to begin working as an independent financial advisor, then it may not be necessary right away.

In addition, some states require that anyone providing financial advice obtain a license or certification. This will vary from state-to-state so it’s important that you check with your local government before beginning any sort of practice as a financial planner.

Ultimately, obtaining a financial planner certificate can certainly be beneficial when trying to establish yourself as an expert in the field of finance; however, it isn’t always necessary depending on your end goals and location.

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FAQs About Financial Planner Certifications

1. What are the requirements for obtaining a financial planner certification?

Answer: The specific requirements vary depending on the type of financial planner certification you are seeking, but generally you must have a bachelor’s degree in finance or a related field, pass an exam administered by a professional organization such as the CFP Board or FINRA, and have at least three years of experience in the financial planning industry.

2. How much does it cost to get certified as a financial planner?

Answer: The cost to become certified as a financial planner varies depending on the type of certification and the organization offering it. Costs can range from several hundred dollars to several thousand dollars.

3. What types of certifications are available for financial planners?

Answer: There are several different types of certifications available for financial planners including Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Life Underwriter (CLU), and Registered Investment Advisor (RIA).

4. How long does it take to become certified as a financial planner?

Answer: The amount of time it takes to become certified as a financial planner varies depending on the type of certification and the organization offering it, but typically it takes anywhere from six months to two years to complete all the steps necessary for certification.

5. What is the difference between a CFP and other certifications?

Answer: A Certified Financial Planner (CFP) is considered one of the highest levels of professional recognition within the industry because they have met rigorous educational, experience, and ethical standards set forth by CFP Board. Other certifications such as CFA or CLU may focus more specifically on investments or insurance products respectively and may not require such stringent education or experience requirements.