The Certified Financial Planner (CFP) designation is one of the most respected credentials for financial advisors and the process to earn it is rigorous. Candidates must fulfill education, experience, and ethics requirements, in addition to passing the comprehensive CFP Exam, a 170-question, multiple-choice test taken across two 3-hour sessions in one day. Material on the CFP Exam is categorized into the CFP Board’s eight principal knowledge topics, which range from retirement savings and income planning to investment planning, professional conduct, and regulation. With a general recommendation that exam takers study for at least 150 hours before the exam, the cost in time and money of failing can be high. Furthermore, given that the exam covers a broad range of financial planning topics, having an organized and disciplined study routine is a necessity to pass the exam.
Accordingly, CFP exam review courses can be a good option to help exam takers not only review the material that will be on the test but also develop strategies for preparing for and taking the exam. The core of most CFP exam review programs is based on instructor-led review sessions that typically come with extensive pre-study materials, which can include condensed reviews of the principal knowledge topics and practice questions, as well as questions and mock exams to help exam-takers gauge their progress and practice in similar conditions as the actual exam. While the core elements of most CFP exam review programs are similar, they differ in their method of delivery, level of personalization, and cost. Instructor-led sessions for some programs can be held synchronously, either in person or livestreamed virtually, while others are held asynchronously, with recorded lectures available to view on demand. Some programs also offer more personalized instruction, from one-on-one video coaching to email access to instructors. Certain programs also offer students some form of exam-pass guarantee, which can range from being able to retake the program for free, to receiving a refund of the program cost.
With more than twenty different CFP exam review options to choose from, exam takers can methodically approach selecting a program by first deciding whether to take a synchronous or asynchronous program. While synchronous programs can be good for exam takers who want (or need) the structure of set schedules, asynchronous programs can be useful for those with unpredictable schedules and the discipline to complete the program on their own. Individuals can then consider other important factors (e.g., group size, guarantees, and cost) that are most important to them based on their preferred learning style and budget. As an alternative, exam takers with very tight budgets can choose a self-study approach using printed review materials and practice questions without the lecture component.
Ultimately, the key point is that while there is no single ‘best’ CFP exam review program that will be suitable for all test takers, those taking the exam can consider their individual situation to narrow the field of available programs. And while there is no guarantee that an individual will pass the CFP exam after taking a review program, these programs can greatly improve the quality and efficiency of the strategy the exam taker chooses when preparing for the exam. Which is important, because passing the CFP exam requires a high level of commitment and hard work – and finding the right method to review and prepare can make a big difference in helping prospective test takers pass the exam!
Earning the Certified Financial Planner (CFP) designation can greatly boost your credibility and career opportunities as a financial advisor But with so many CFP program options out there, how do you pick the right one? In this comprehensive guide, I’ll walk through the key factors to consider when selecting a CFP certification program tailored to your specific needs and learning style.
Overview of CFP Certification
First, let’s quickly recap what the CFP certification involves:
- Administered by the CFP Board
- Requires completing CFP education coursework
- Covers major financial planning topic areas
- Culminates in a comprehensive CFP exam
- Valid for one year initially, then renewed biennially
Gaining the CFP mark signals mastery of financial planning competencies and adherence to high ethical standards. It’s generally considered the “gold standard” within the industry.
Key Factors in Choosing a CFP Program
With many educational providers offering CFP courses, determining the right fit depends on several personal factors:
Consider the Course Level
CFP programs are offered at two main levels
- Self-study – Flexible self-paced options for independent learners. Tend to cost less.
- University – Brick-and-mortar classroom programs through accredited universities. Often more expensive.
Consider your learning style and budget to decide which environment suits you best.
Gauge Your Learning Style
How you best absorb new information dictates the format that will work best:
- Self-directed – Self-study if you learn well independently through books, video lessons and practice exams.
- Classroom – University programs if you prefer live instructor-led learning and cohort discussions.
Think about environments where you’ve succeeded before.
Determine Your Study Timeframe
CFP programs range from condensed courses to more extended timelines
- Accelerated – Complete courses in as little as 6 months for quick certification. Intense pace.
- Extended – Stretch program over 1-2 years to learn at a more gradual, manageable tempo.
Consider your existing workload and how quickly you want to become certified.
Consider Your Schedule Availability
When picking a program, assess your availability:
- Self-paced scheduling – Self-study courses allow you to set your own flexible schedule. Learn on your own time.
- Fixed scheduling – University classes require attendance at set times. Less flexibility but more structure.
Choose an option that fits your lifestyle and competing commitments.
Evaluate the Costs
Of course, costs will differ significantly:
- Self-study – Typically ranges from $1,000-$3,000 for materials and exam fees.
- University – Usually $5,000-$15,000 including tuition and materials. Employer reimbursement may offset costs.
Factor in your budget and earning potential post-certification.
Research Providers
Once you’ve determined your ideal course format and structure, compile a list of specific providers that meet your criteria. For each, consider:
- Pass rates
- Instructor qualifications
- Course materials/platform
- Student resources and support
Find a provider with a strong reputation and track record. They’re not all created equal.
Weigh Pros and Cons
Make a detailed side-by-side comparison of a few top contenders. Look at unique pros and cons of each:
- Cost, format and duration
- Strength of coaches/faculty
- Quality of study materials
- Adaptive learning technology
- Student community and networking
- Convenience and accessibility of support
Choose the provider that best aligns with your needs and goals for the certification.
Types of CFP Certification Programs
To recap, here are the primary program categories and some top providers to consider:
Self-Study CFP Programs
Pros: Flexible and self-paced, lower cost
Examples: Kaplan, Dalton, Wiley
University CFP Programs
Pros: Live instruction and cohort experience
Examples: UC Irvine, Northwestern, Kansas State
When selecting among top contenders, start by requesting information kits from each. Many offer preview trials so you can experience their teaching approach firsthand. This allows making the most informed choice.
Additional Tips for Choosing Your CFP Program
Keep these additional tips in mind when evaluating CFP study programs:
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Ask financial advisors in your network what program they recommend. Word-of-mouth insights are invaluable.
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Ensure the provider is registered with the CFP Board with a proven pass rate track record.
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See if your employer offers tuition reimbursement to offset costs.
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Look for special deals and discounts. Programs often run promotions.
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Investigate financing options if needed to spread out costs over time.
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Double check that the program strictly adheres to the CFP Board’s curriculum standards.
Choosing your perfect CFP certification program is an exciting first step towards joining the ranks of elite financial planning professionals. With a methodical selection process, you can find the ideal option tailored to your individual needs. The investment will pay dividends for your career down the road.
Differences in Cost For CFP Exam Prep Programs
The differences in the style of instruction and personalization lead CFP exam review programs to be available at a wide range of price points. While asynchronous instructor-led review programs are available for as low as $595 (and standalone written exam preparation materials and practice questions can be purchased for much less), premium offerings that include live instructor-led sessions and significant instructor access can cost more than $2,000 (although there are a number of scholarships available – not only for CFP exam review programs, but also for the exam itself – that can help defray the cost!).
Because registration for the CFP exam alone costs between $825 and $1,025 (depending on how close to the exam dates the test taker registers), some exam takers might question the value of review programs that cost just as much – or even more! – than the exam itself. While each person’s study needs are different, failing the exam can prove to be expensive in both the dollar cost in needing to sign up for the exam again, as well as the time cost of studying (not to mention the emotional distress one might experience, especially after investing so much time to prepare). With a general recommendation that exam takers study for at least 150 hours before the exam, the cost of failing would be at least $3,750 for someone who values their time at $25 per hour… and this does not even include the cost of the exam itself!
CFP Exam Review “Pass Guarantees”
Another differentiating feature between exam review programs is the various offers available for students who enroll in review programs but who don’t pass the actual CFP exam.
These guarantees do come at a cost, though, as programs that offer them are generally more expensive than those that do not. And for those ready to invest their time and energy into a CFP Exam Review program in the first place, ostensibly they’re committed enough to study and pass that the risk of not passing is diminished already. Though, on the other hand, some test-takers prefer CFP Exam Prep providers that have some ‘skin in the game’ themselves (as the provider shares in the financial risk if the CFP Candidate does not pass!).
How to Become a CFP Professional – Step by Step Guide
How do I get a CFP certification?
In order to earn the CFP certification, candidates must complete the “Four E’s” requirements of: – Education. Complete an educational curriculum that covers the CFP Principal Topics from a CFP Board Registered Program and delivers at least 18 credit hours of educational programming (generally, six college-level courses). – Examination.
Do I need a CFP program before taking the CFP exam?
The Certified Financial Planner Board of Standards requires individuals to complete a CFP program prior to taking the CFP exam. Since the board doesn’t recommend a particular program, you have the option to choose from many programs that may have different lengths, formats and course styles.
What are the requirements for CFP® certification?
One of the requirements for CFP® certification is completing the coursework requirement through a CFP Board Registered Program, so you can ensure you have the knowledge you need to deliver the best possible financial planning services to your clients.
How do I choose a CFP program?
The first factor is your study habits and learning style. CFP programs fall into two categories: online and in-person (when COVID-19 allows). Online CFP programs can be self-paced and allow for more flexible study schedules, while in-person courses offer more structure and support with a dedicated professor.
