chartered financial consultant vs cfp

chartered financial consultant vs cfp

chartered financial consultant

Англо-русский словарь по инвестициям . 2014 .

Смотреть что такое "chartered financial consultant" в других словарях:

Chartered Financial Consultant — ˌChartered Fiˌnancial Conˈsultant noun [countable] JOBS FINANCE INSURANCE a member of the American society of Chartered Life Underwriters and Chartered Financial Consultants, qualified to give financial advice * * * chartered financial consultant … Financial and business terms

Chartered Financial Consultant - ChFC — A professional designation representing completion of a comprehensive course consisting of financial education, examinations and practical experience. Chartered Financial Consultant designations are granted by The American College upon completion … Investment dictionary

chartered financial analyst — ( CFA) An experienced financial analyst ( financial analysts) who has passed examinations in economics, financial accounting, portfolio management, security analysis, and standards of conduct given by the Institute of Chartered Financial Analysts … Financial and business terms

Financial adviser — Personal finance Credit and debt Pawnbroker Student loan Employment contract Salary Wage Em … Wikipedia

Financial planner — A financial planner or personal financial planner is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes but is not limited to these major areas: cash flow management,… … Wikipedia

Financial Adviser — A professional who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement, depending on what the client requests. Some… … Investment dictionary

Certified Financial Planner — The Certified Financial Planner (CFP) designation is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards, Inc. (CFP Board)[1] in the United States, Financial Planning Standards… … Wikipedia

Personal Financial Advisor — Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement, depending on what the client requests help with. Some… … Investment dictionary

CFC — Chartered financial consultant … American business jargon

CHFC — Chartered Financial Consultant (Business » Accounting) * Chemical Financial Corporation (Business » NASDAQ Symbols) … Abbreviations dictionary

ДИПЛОМИРОВАННЫЙ КОНСУЛЬТАНТ ПО ФИНАНСАМ — CHARTERED FINANCIAL CONSULTANT ChFCЗвание, присваиваемое специалистам по фин. планированию и агентам по страхованию жизни и предполагающее высокий уровень знаний и профессиональных навыков. Присваивается после успешного прохождения курса обучения … Энциклопедия банковского дела и финансов

Chartered Financial Consultant - ChFC

DEFINITION of 'Chartered Financial Consultant - ChFC'

A Chartered Financial Consultant is a professional designation representing completion of a comprehensive course consisting of financial education, examinations and practical experience. Chartered Financial Consultant designations are granted by The American College upon completion of seven required courses and two elective courses. Those who earn the designation are understood to be knowledgeable in financial matters and to have the ability to provide sound advice.

Chartered Alternative Investment .

BREAKING DOWN 'Chartered Financial Consultant - ChFC'

In order to be considered for the program, the applicant must already have a minimum of three years working in the financial industry. In addition, it is recommended that applicants have a degree related to finance or business before applying as it will make the program much easier.

Why Chartered Financial Consultant Designation Matters

The curriculum to earn this professional designation from The American College is made up of courses designed to include a range of financial planning duties and responsibilities. This includes practical application of the skills learned in real-life scenarios. According to the college, financial advisors who receive the designation may earn a higher income compared with industry peers who do not. However, there is debate about whether or not this designation is on a par with or supersedes the certified financial planner designation, which is awarded and administered by the CFP Board, in terms of relevance within the financial industry. The CFP Board has contended that its designation includes an adherence to a code of ethics and what it describes as a more thorough examination process for its applicants compared with the program and designation available through The American College.

The training for a Chartered Financial Consultant incudes lessons in understanding key elements of the financial planning world, such as retirement planning, estate planning, insurance, investments, and income taxes. There is also curriculum on how rules within those segments change in relation to small business planning, financial planning for households on the midst of divorce, or for families who have special needs dependents.

Once the designation has been earned, there is also a requirement for continuing education credits to maintain the credential. An advisor who has received this credential may work with individuals to assist them with retirement savings, in particular for early retirement, and budget planning, or with companies to assess their investment strategies. There may be an expectation that the advisor remains continuously abreast of all financial laws at international, national, and local levels that might apply to the clients they work with and the financial activities they are involved in.

CFP ® Mark vs CFA ® Charter: Which is Right for You?

Posted By: Kaplan Financial Education

Updated: July 31, 2017

The CFP ® mark and CFA ® charter are both the most prestigious designations in their respective fields. If you are just starting out in a finance career, you may be wavering between these two designations. Let’s explore the key differences between the two paths to give you a better idea of what makes the most sense for you and your career.

Each designation has a governing body, CFP Board and CFA Institute, that upholds the standards of excellence for competent and ethical practices. These governing bodies create the exams and determine the standards required to pass with input from current professionals in the industry.

To obtain the CFP ® mark, you have to pass one exam. The exam is offered three times per year in March, July, and November. The overall pass rate for the November 2016 CFP ® exam was 63.2%.

The CFA charter, in contrast, requires you to pass three exams. CFA Level I is offered twice per year in December and June, while Levels II and III are only offered annually in June. The CFA Level I exam pass rate in December 2016 was 43%.

Requirements for the CFP ® Mark and CFA ® Charter

There are a number of requirements beyond passing the exam(s) to obtain both designations. To earn the CFP ® mark, you need a bachelor’s degree and three years of professional experience or two years apprenticeship experience. The experience component can be completed within ten years preceding the exam or five years following the exam. You also must complete the required education prior to taking the CFP ® exam and adhere to CFP Board’s ethical standards.

The CFA charter also requires you to obtain a bachelor’s degree and have four years of professional experience. The experience component can be completed before, during, or after completing the CFA Program. Unlike with the CFP ® exam, there is no education requirement for the CFA exams (although passing the exams without studying is nearly impossible). In addition, you must join and maintain membership to CFA Institute to be considered a CFA charterholder.

There are eight principal knowledge topic categories covered on the CFP® exam. According to CFP Board, all aspects of the CFP® exam are guided by CFP® professionals, including the determination of content coverage; the writing, reviewing, and approving of exam questions; and the scoring and passing criteria. The topics covered include: professional conduct and regulation, general financial planning principles, education planning, risk management and insurance planning, investment planning, tax planning, retirement savings and income planning, and estate planning. The topic area weights vary by exam cycle.

The Candidate Body of Knowledge (CBOK) represents the core knowledge, skills, and abilities tested on the CFA exam. Thousands of investment professionals have input into the CBOK to ensure it represents the most important aspects of the career. Ethics and professional standards is one of the most important topic areas throughout the program. The other nine topic areas include quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management and wealth planning. The topic area weights vary by level and by exam cycle. Some of the topics are also combined at times for testing purposes.

It generally takes candidates about one year to complete the CFP ® certification program, assuming they pass the exam on the first try. The required education for CFP ® certification takes about nine months to complete. This allows some time to review the education and prepare for the exam.

The CFA charter can be completed in two and a half years; however, the average candidates gets through the program in four years, according to CFA Institute. It is expected that CFA candidates study for a minimum of 300 hours per exam level.

There are many career options available to both CFP ® professionals and CFA charterholders. CFP ® certification is a common path for professionals interested in becoming financial planners or financial advisors. If you are interested in specializing in wealth or estate planning, there are niche careers in those areas as well. The CFP ® mark can also help you get into a career as a trading and research associate, financial consultant, financial representative, or a financial analyst. If you want to become a branch manager at a financial firm, the CFP ® mark can help you achieve that level in your organization.

The CFA charter opens up opportunities for career advancement in investment and finance fields. CFA charterholders often go on to become portfolio managers, research analysts, consultants, corporate financial analysts, and even chief-level executives. You may opt to earn the FRM ® designation as well and become a financial risk manager. The CFA charter can also help you gain employment as a relationship manager, financial advisor, investment banking analyst, strategist, or trader.

Now that you know the main differences between the CFA charter and the CFP ® mark, you can access resources for the designation you are most interested in by visiting the CFP ® Professional Career Corner or the CFA Resource Center.

Chartered Financial Consultant (ChFC) – Requirements, ChFC vs CFP

For decades, the Chartered Life Underwriter (CLU) designation was the premier financial and insurance planning credential sported by life insurance agents and financial planners who marketed their products and services to the public.

Then, the Certified Financial Planner (CFP) designation was created in the 1970s and grew in popularity until it became the premier financial planning designation, partly because of its perceived lack of bias toward life insurance.

However, in 1982, the American College in Bryn Mawr, Pennsylvania decided to create a new financial planning designation tailored to insurance professionals in an effort to level the playing field.

Financial professionals with this credential, known as the Chartered Financial Consultant (ChFC), receive a more thorough education than CFPs and are well prepared to provide comprehensive financial planning for their clients.

That said, although the ChFC credential is still less well-known than the coveted CFP, over 40,000 financial professionals proudly carry the ChFC designation behind their names.

Who Should Earn the ChFC Designation?

Any financial professional who desires to increase his or her knowledge and competence can benefit greatly from obtaining the ChFC designation. Stockbrokers, insurance agents, realtors, loan officers, bankers, investment advisers, estate planners, and tax and accounting professionals are all prime candidates for this credential. Inexperienced professionals who are not yet established can greatly augment their credibility if they are able to put the ChFC designation on their business cards.

Chartered Financial Consultants have the education to more effectively handle complex transactions and cases than most non-credentialed agents. ChFCs typically earn more than their non-credentialed counterparts as well. They are more marketable to prospective employers, as this credential displays a serious intention to remain in the financial industry and may grease the rails leading to management or supervisory positions.

The American College is currently the only educational institution offering a ChFC curriculum. Each course costs $599 plus a one-time non-refundable fee of $135 for new students. The entire curriculum costs just under $5,400, but will be more for students who want select supplemental study materials physically shipped to them.

Of course, those who transfer course credits over from other credentials such as the CLU or CFP will have fewer courses to pay for. Alternatively, professional students can pay $135 per month for 40 months to complete the curriculum. The difference between this and the upfront costs are minimal – no interest is charged – and may be the best course of action for the committed student.

ChFCs must complete 30 hours of continuing education coursework every 2 years and pay a renewal fee of $200 at that time. Those who also carry the CLU designation must only pay one renewal fee for both credentials. ChFCs are also required to adhere to a strict code of professional ethics created by the American College.

Although the curriculum for the ChFC has been slightly reduced in recent years, it still requires the most coursework of any of the major financial planning designations. ChFC candidates must finish all coursework within five years and satisfy a three-year professional work experience requirement. The curriculum consists of seven core courses followed by two elective courses, broken down as follows:

  • The Financial Planning Process
  • Insurance Planning Fundamentals
  • Income Taxation
  • Retirement Planning
  • Estate Planning
  • Investment Planning
  • Applications of Financial Planning

Additional Elective Courses

  • The Financial System in the Economy
  • Applied Estate Planning
  • Executive Compensation
  • Financial Decisions for Retirement

Students who have already earned other designations such as the CLU or CFP can receive credits for the relevant coursework that they’ve previously completed. Students who are not eligible for credit from other designations can expect to spend 70-80 hours completing each course, which means 600-800 hours for the entire curriculum.

Final Word

Those who wish to earn the ChFC credential must be willing to make a substantial commitment of both time and money. However, the increase in expertise and credibility that comes with carrying this designation often leads to a significant increase in income over time.

The ChFC designation is most appropriate for financial advisors who value a thorough financial education over professional marketing. This is because the CFP designation is more recognizable to prospective clients than the ChFC credential and requires less of a time and money investment. In other words, clients may choose a CFP over a ChFC primarily because the CFP credential has garnered more media attention and endorsement.

One approach often used by advisors is to earn the CFP credential first and apply those courses to the ChFC designation if they choose to pursue it. For more information, log on to the American College website.

Certified Financial Planner (CFP) VS Charted Financial Consultant (ChFC)

Cost differ greatly at $850 VS $3,413.30 respectively for examination fees. Not too sure about membership fees though.

Which is more recognisable in the general financial industry?

Cost differ greatly at $850 VS $3,413.30 respectively for examination fees. Not too sure about membership fees though.

Which is more recognisable in the general financial industry?

but then, the insurance i bought are hardly million dollar worth of stuff.

just plain vanilla term, medical, PA and travel insurance

FA: Ok, I recommend you bond mutual fund the return is 2%

me: U siao ah! inflation already 5%. U only offer me 2%.

FA: Because your risk appetite is low risk, only mutual fund return 2% and very low risk.

me: I am looking for high return, low risk. Why you recommend me this kind of nonsense mid risk, low return product?

FA: In market no such thing as high return,low risk. High return will come with high risk

me: Then what for I need you? What is your value add? You are just going to get in the way and suck commissions. If I want high return high risk, I can easily find it everywhere. I can go MBS, even faster.

FA: Ok, I recommend you bond mutual fund the return is 2%

me: U siao ah! inflation already 5%. U only offer me 2%.

FA: Because your risk appetite is low risk, only mutual fund return 2% and very low risk.

me: I am looking for high return, low risk. Why you recommend me this kind of nonsense mid risk, low return product?

FA: In market no such thing as high return,low risk. High return will come with high risk

me: Then what for I need you? What is your value add? You are just going to get in the way and suck commissions. If I want high return high risk, I can easily find it everywhere. I can go MBS, even faster.

but then, the insurance i bought are hardly million dollar worth of stuff.

just plain vanilla term, medical, PA and travel insurance

FA: Ok, I recommend you bond mutual fund the return is 2%

me: U siao ah! inflation already 5%. U only offer me 2%.

FA: Because your risk appetite is low risk, only mutual fund return 2% and very low risk.

me: I am looking for high return, low risk. Why you recommend me this kind of nonsense mid risk, low return product?

FA: In market no such thing as high return,low risk. High return will come with high risk

me: Then what for I need you? What is your value add? You are just going to get in the way and suck commissions. If I want high return high risk, I can easily find it everywhere. I can go MBS, even faster.

FA: Ok, I recommend you bond mutual fund the return is 2%

me: U siao ah! inflation already 5%. U only offer me 2%.

FA: Because your risk appetite is low risk, only mutual fund return 2% and very low risk.

me: I am looking for high return, low risk. Why you recommend me this kind of nonsense mid risk, low return product?

FA: In market no such thing as high return,low risk. High return will come with high risk

me: Then what for I need you? What is your value add? You are just going to get in the way and suck commissions. If I want high return high risk, I can easily find it everywhere. I can go MBS, even faster.

Cost differ greatly at $850 VS $3,413.30 respectively for examination fees. Not too sure about membership fees though.

Which is more recognisable in the general financial industry?

2) Once you get CFP, apply for ChFC exemption for ChFC 1 to ChFC 5 and only do ChFC6,7 and 8. As a CFP you have 5 modules exemption in ChFC but not the other way round at this point in time.

3) Once you finish ChFC, finish CLU - you get 4 module exemption on CLU and only do 4 modules. It's not difficult if you study.

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