Guide to Financial Planning Certifications

CERTIFIED FINANCIAL PLANNER™ (CFP®)

CFP® certification is generally acknowledged as the highest standard in personal financial planning, and demonstrates a deep knowledge and commitment to a career providing professional financial advice. It is the most widely recognized and sought after professional designation within the financial planning industry. Certification is granted and controlled by the Certified Financial Planner Board of Standards, and characterized by its:

• High standard of professional education
• Stringent code of conduct and practice standards
• Ethical requirements governing engagement with clients

To attain the CFP® marks, an individual must complete four requirements known as the “Four E’s”:

Education

Attain a bachelors degree or higher from a regionally accredited university

Complete an advanced course of study covering the financial planning subject areas defined by the CFP Board as being important for the delivery of competent, professional financial advice. Subject areas include investment planning, insurance and risk management, income tax planning, estate planning, employee benefits planning, retirement planning, and others.

Exam

Pass the comprehensive CFP® certification examination. The examination is administered in 2 sessions of 3 hours each with a brief break in between. It includes case studies and client scenarios designed to test students’ ability to correctly diagnose a wide range financial planning issues and apply their knowledge of financial planning to real world circumstances. The exam is designed to cover a wide range of subject areas, and passing is regarded as a tremendous accomplishment.

Experience

Because CFP® certification indicates to the public the ability to provide professional financial planning services without supervision, candidates are required to accumulate either 6,000 hours of experience through the Standard Pathway, or 4,000 hours of experience though the Apprenticeship pathway that meets additional requirements. Qualifying experience may be acquired through a variety of activities and professional settings including personal delivery, supervision, direct support, indirect support or teaching. Experience is often required to be supervised or verified by a CFP® professional.

Ethics

Individuals must agree to be bound by the CFP Board’s Standards of Professional Conduct, which consist of a set of documents outlining the ethical and practice standards for practitioners.

Certificants are also required to adhere to a fiduciary standard while providing financial planning services, meaning that they agree to put their clients’ best interests before their own.

Maintaining CFP® certification requires a minimum of 30 hours of continuing education every two years, including 2 hours on the Code of Ethics. It also requires renewal of the agreement to be bound by the Standards of Professional Conduct. You can learn more about CFP® certification at http://www.cfp.net

The following members of the Financial Advisors Network maintain current CFP® certification:

Grant Bledsoe

Rachael Burns

Charles Ho

Tony Matheson

Glenn Monroe

CERTIFIED DIVORCE FINANCIAL ANALYST™ (CDFA®)

A CDFA® professional is a financial professional skilled at analyzing data and providing expertise on the financial issues of divorce. The role of the CDFA® professional is to assist the client and his or her attorney to understand how the decisions he or she makes today will impact the client’s financial future. A CDFA® can take on many roles in the divorce process:

• High standard of professional education
• Stringent code of conduct and practice standards
• Ethical requirements governing engagement with clients

Financial Expertise and Strategy

CDFA® professionals provide the client and attorney with data analysis that shows the financial effect of any given settlement. They become part of the divorce team and provide support on financial issues such as:

• Understanding the short-term and long-term effects of dividing property.
• Analyzing pensions and retirement plans.
• Determining if the client can afford the marital home, and if not, what he or she can afford.
• Recognizing the tax consequences of different settlement proposals.

Data Collection and Analysis

Much of a CDFA® professional’s role is collect the client’s financial data and perform analysis. CDFAs can help manage a client’s expectations of their financial future by presenting different scenarios and talking through the client’s budget and expenses. CDFAs are trained to:

• Collect financial and expense data.
• Help clients identify their future financial goals.
• Develop a budget.
• Set retirement objective.
• Determine how much risk they are willing to take with their investments.
• Identify what kind of lifestyle they want.

Expert Presenter and Litigation Support

In some cases, CDFA® professionals are called upon to act as expert witnesses in court or in mediation proceedings.

Maintaining CDFA® certification requires a minimum of 30 hours of continuing education every two years. It also requires renewal of the agreement to be bound by the Standards of Professional Conduct. You can learn more about CFP® certification at https://institutedfa.com/about-cdfa-course/

The following members of the Financial Advisors Network maintain current CDFA® certification:

Rachael Burns

CERTIFIED PUBLIC ACCOUNTANT (CPA®)

The CPA designation is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. Eligibility to sit for the Uniform CPA Exam requires a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration, and a total of 150 credit hours to become certified. CPAs are required to complete 40 hours of continuing education annually (or 80 hours over a two-year period) in order to renew their license, and most states also require their CPAs to take an ethics course during every renewal period.

The following members of the Financial Advisors Network maintain current CFP® certification:

Mike Troxell

CHARTERED FINANCIAL ANALYST (CFA®)

The CFA charter is a worldwide investment credential administered by the CFA Institute, and has become one of the most globally recognized and respected investment designations.
To become a Charterholder, candidates must have four years of qualifying work experience, become a member of the CFA Institute, pledge to adhere to the CFA Institute Code of Ethics and Professional Standards on an annual basis, and complete the CFA program. The CFA program consists of three individual six-hour examinations that test the fundamentals of investment tools, valuing assets, portfolio management, and wealth planning. Each exam requires an average of 300 hours of preparatory study. CFA charterholders are qualified to work in senior and executive positions in investment management, risk management, asset management, and more.

The following members of the Financial Advisors Network maintain current CFP® certification:

Grant Bledsoe