WHY SHOULD I BECOME A CFP® CERTIFICANT?

Both new and established CFP®s focus on four primary factors that give them the personal initiative to achieve this distinguished professional designation:

• The professional satisfaction of working with appreciative clients.  Having the competency to fulfill comprehensive financial planning requirements builds a unique and underlying basis for ongoing client relationships—and subsequent referrals. 
• The explosive growth opportunities in this professional services space. The National Bureau of Labor Statistics forecasts that the demand for financial planners will increase by 3.5% per annum during the 2006-2016 period, while overall employment demand will be far lower at 1.2% per annum. For career-changers, the opportunities are real.
• The significant difference in total compensation between CFP®s and other financial advisors. According to a recent CFP® Board of Standards survey, CFP®s earn 50% more than non-CFP® financial planners. As shown in the Table below from “Trends in the Financial Planning Industry”, the CFP® designation has a marked impact on advisor earnings almost immediately—and then continuing—after certification.

Advisor Tenure	Annual Compensation as non-CFP® Advisor	Annual Compensation as CFP® Advisor	% Increase
1-4 Years	$58,000	$154,000	165%
5-9 Years	$116,000	$176,000	52%

• The potential opportunity to exchange a corporate for an entrepreneurial environment. As larger financial institutions continue to diminish in size and reputation, more advisors are shifting toward a client-focused practice reliant solely upon their individual levels of professionalism, competency and credibility.

WHAT ARE THE REQUIREMENTS TO BECOME A CFP® CERTIFICANT?

As established by the CFP® Board of Standards, there are four principal requirements, otherwise known as the “Four Es”:

• Education—To pass the CFP® Certification Examination, a candidate needs to be knowledgeable in 89 financial planning topics established by the Board. A CFP-Board registered program, like Northwestern’s, provides a candidate with in-depth knowledge and practical application of each of these topics. In addition, a candidate must have completed a BA degree prior to certification.
• Examination—The CFP® Certification Examination is intended to assure that a candidate has achieved a minimal level of competency to work with clients without supervision. Lasting 10 hours over a two-day period, the examination tests the practical application of knowledge acquired through a registered program like Northwestern’s.
• Experience—The Board requires three years of relevant financial planning experience to achieve CFP® certification, although a candidate with lesser experience can complete the Examination and work in a professional environment to achieve this requirement. Northwestern often interfaces with potential employers to identify professional opportunities for its students.
• Ethics—The recent spate of client victimization has frightened many clients, as well as advisors. Thus, the CFP® Board requires a thorough background check of each candidate prior to certification. In addition, CFP®s are required to adhere to a Code of Ethics and Practice Standards, and accept the Board as a disciplinary body.