The journey to becoming a trusted financial advisor often leads professionals to pursue the Certified Financial Planner (CFP) designation. Those bearing the CFP mark themselves as highly credentialed experts in a field crowded with advisors.
The Master of Science (M.S.) in Finance and Financial Services – Financial Planning Track online program from William Paterson University (WP) directly addresses the industry’s fast-growing demand for highly qualified and trusted professionals. Designed for individuals aiming to ascend to senior roles within finance and financial services, this program offers an in-depth preparation for the Certified Financial Planner exam.
What Is a Certified Financial Planner?
The CFP designation recognizes individuals with deep expertise in financial planning, taxes, insurance, estate planning and retirement savings. Awarded by the Certified Financial Planner Board of Standards, Inc., the certification demands successful completion of its exams, a bachelor’s degree, specific financial planning courses and three years of relevant experience. Typically, candidates spend 18-24 months to prepare for and pass the exam. WP’s Financial Planning Track directly prepares graduates for this exam, ensuring they are equipped to earn the CFP designation.
CFPs operate under a strict fiduciary duty and prioritize clients’ financial interests, which distinguishes them from other financial advisors. The WP online M.S. program emphasizes both the technical knowledge needed for the exam and the ethical standards critical to the fiduciary duties of lucrative roles, including personal financial planner, financial analyst, investment strategist/manager, portfolio manager and financial consultant.
What Does a Certified Financial Planner Do?
CFPs serve as comprehensive guides in managing an individual’s finances, addressing a wide range of needs from investment and retirement planning to insurance and education funding. As fiduciaries, CFPs commit to making decisions that prioritize their clients’ best interests. Their role extends beyond the scope of traditional investment advisors. CFPs start by thoroughly assessing one’s financial situation — evaluating assets, investments and liabilities — to establish a clear picture of income and net worth.
With this foundation, they collaboratively develop tailored financial plans to meet specific life goals, whether ensuring financial stability in retirement or planning for a child’s education. The CFP credential empowers financial professionals to work across various disciplines, including financial planning, advising, brokerage and estate management.
What Are the Career Prospects and Compensation for a Certified Financial Planner?
Personal financial advising projects to be one of the fastest-growing fields in the U.S. between 2022 and 2032, with opportunities growing by 13% annually, according to the U.S. Bureau of Labor Statistics. Certified financial planners command salaries that reflect their expertise and the demand for their services, with compensation levels influenced by factors such as experience and location.
ZipRecruiter reports a wide range of annual salaries for CFPs, from $61,000 to $141,000, with the majority earning between $87,000 and $114,500. The top 10% of earners make up to $137,500 annually. CFPs working directly with clients charge an average of $235 per hour, $1,871 for a comprehensive plan or $5,528 per year for an annual retainer, according to Forbes.
What Is the CFP Certification Exam?
The CFP certification exam is a crucial requirement for obtaining the CFP certification. This exam evaluates candidates’ ability to apply a broad range of financial planning knowledge in real-life scenarios, prioritizing critical-thinking and problem-solving skills. Developed from a detailed analysis of personal financial planning practice, the exam questions reflect the principal knowledge domains essential for effective financial planning.
With 170 questions covering professional conduct, financial planning principles, risk management, investment, tax planning, retirement savings, estate planning and the psychology of financial planning, the exam ensures a comprehensive assessment of a candidate’s proficiency. Earning the CFP mark, recognized as the most prestigious in the financial planning field, is a goal for those aiming to become the industry’s best-trusted and compensated financial planners or advisors.
Who Can Take the CFP Certification Exam?
To be eligible for the CFP exam, candidates must first satisfy the CFP Board’s certification coursework requirement. This can be achieved by completing a CFP Board Registered Program or submitting equivalent coursework for the Board’s Transcript Review. Registered programs directly verify completed education with the CFP Board, while other paths — like the transcript review or the Accelerated Path — necessitate that candidates submit specific documentation for evaluation. Graduates of WP’s Financial Planning Track meet these requirements, positioning them to take the CFP exam confidently.
WP offers a robust pathway for aspiring CFPs. By equipping students with the necessary knowledge, skills and ethical grounding, the program prepares them for not only the CFP exam but also for a successful career in financial planning. Graduates emerge well prepared to navigate the complexities of financial advising, ready to significantly impact their clients and the broader financial community.
Learn more about William Paterson University’s online Master of Science in Finance and Financial Services – Financial Planning Track program.
