Important Dates
-
Early Decision I application due
-
Early Decision II application due
-
Regular Decision application due
-
Early Decision I deposit due
-
TBD
Early Decision II deposit due - early March
-
Regular Decision deposit due
No matter your money concern, there's a financial advisor who can help demystify any financial confusion. Looking towards fees, credentials and personal needs can help point you in the right direction.
Every stage of life brings financial changes. The focus of early adulthood may revolve around managing newly acquired credit cards and a plan for student loan payments, and the focus of someone in their 40’s may still be paying off student loans, along with caring for aging parents and learning about options trading. Regardless of the stage you’re at, a financial advisor can provide clarity and an actionable plan for your needs.
Before a financial advisor can even begin to help you map out a course of action, however, you need to know what you want to do with your money. A good place to start is by asking yourself what your financial goals are. Financial goals can vary from funding an emergency fund to eliminating financial risks such as hefty credit card debt, to better positioning yourself to start a business. Goals also help you by setting your timeline.
Several resources online such as the toolkit from Newark based Financial Educator Tiffany “The Budgetnista” Aliche and the financial goal sheet provided by Rutgers University can assist in determining smart goals and developing a financial framework.
Having even a general idea of all these items can make the selection of a financial advisor an easier process.
With 480 financial firms and 1407 advisors in New Jersey, there’s no shortage of advice to transform your finances. The question is, what kind of financial advisor do you need?
Financial advisors go by many names, but they may not all be certified or have any specific training. Even someone who has gone through training and testing to be a practicing certified financial planner (CFP) may choose to go by various titles. They may call themselves financial planners, financial therapists,or a financial coach. Others may choose a name that aligns with their speciality such as wealth manager, retirement specialist, estate planner, cash flow analyst, portfolio manager amongst others. However, anyone who gives investment advice must be registered with the Securities Exchange Commission.
Anyone can study to specialize in certain financial areas, and most anyone with some knowledge of and experience with money can call themselves a financial planner. According to the Financial Industry Regulatory Authority (FINRA), a self-regulating authority for financial services, a financial planner “could be brokers or investment advisers, insurance agents or practicing accountants—or they have no financial credentials at all.”
So it can be challenging to determine who is credible. One way to do that is to look at the letters following the person’s name. Some of the most common and trusted certifications include the PFS (Personal Finance Specialist), CFP (Certified Financial Planner), CFA (Certified Financial Analyst) and CEPF (Certified Educator in Personal Finance) certifications. All of these require several courses and exams in various areas of finance. However, CEPF is a self-study program recognized as a professional designation.
Financial advisors, on the other hand, are required to pass the NASAA’s Series 65 exam, which is administered by FINRA. Financial advisors can be brokers, insurance agents and estate planners. Some advisors may be fee-only fiduciary advisors, which means they have a responsibility to you, their client, to pick only the products and services that will be best for you.
Like with any role, even credentials may not always be a true indicator of how skilled someone is with financial planning. Testimonials from previous clients can be extremely helpful in determining how beneficial they could be to you, especially if the testimonial is from someone in a similar financial situation.
Choosing a financial planner or advisor often comes down to cost and affordability. As such, it’s common to ask what is the “going rate.” Some financial advisors charge a project or service rate, hourly rate, or flat fee for a year-long retainer. Other financial advisors charge on a sliding scale based on the amount of the accounts or money held with them commonly referred to as assets under management (AUM). Some fees are commission based depending on the profit from investments.
Because of the various payment structors, it’s not uncommon to find one financial advisor charging $200 per hour and another advisor charging up to $7,500 for an annual retainer.
While the cost may sound steep, it may not be a deterrent. When overwhelmed with cost and pricing options, it’s best to revisit your personal financial goals and needs. Keep in mind that some advisors have their own requirements about who they work with. Depending on their structure, some advisors will only take clients who have over $200,000 in assets to manage while others may have a net worth requirement.
The hardest part of finding a financial advisor is knowing where to look. Fortunately, there are several websites, directories and community organizations that can point you in the right direction.
There are several other factors to keep in mind when choosing a financial advisor, aside from fees and credentials. You may also want to keep in mind the advisor's specialty, client experience, and meeting options. Even though a financial advisor can offer guidance on several aspects of money management and solutions, they may not be well-versed in what you need. For example, it is not ideal to work with someone whose experience is only advising those in late-middle age if you have a growing family with small children. Or if the high cost of property taxes in New Jersey is concerning, you may prefer to select a financial advisor with extensive knowledge with real estate and debt management. Financial advisors can specialize in retirement planning, debt management, investment advice, tax planning and more. It makes sense to choose someone aligning with your financial goals and needs.
You may also want to consider your availability and scheduling when selecting an advisor. Your job, home life and free time can determine if you require someone who can offer virtual sessions or someone who only does in-person meetings. Additionally, someone just starting their financial journey with fewer assets to manage may prefer someone who offers flexibility in the amount of hours they provide versus someone requiring you to sign a contract for a full year.
Finally, the advisor’s financial philosophy and ability to be empathetic can play a big role in whether or not you feel at ease and receptive to the guidance provided. Money can be just as emotional as it is transactional, and someone who isn’t empathetic to your situation may not be a good choice. Or you may prefer someone who isn’t as empathetic and uses a “tough love” approach instead. Be honest with yourself about what you respond to so you can find an advisor who delivers information in the capacity you need.
This will deliver you an idea of how many sessions you can expect and what their framework is for guiding a client. It will also let you know how much access to the particular advisor you have. For example, can you expect answers to emails and phone calls outside of the regular sessions, or will you have to wait till your scheduled appointments?
You don’t only want to choose someone who knows about money. Ideally, the financial advisor you work with will also align with your values or be able to offer guidance that aligns with your values.
Considering the various ways personal advisors are compensated whether hourly, fee-only, retainer, commissions, or fee-based, you want to make sure whoever you work with is upfront about them. An advisor who can clearly answer how they are paid is one way an advisor can build your trust.
Working with a fiduciary is one way to determine if an advisor works with their clients’ best interest in mind as opposed to being motivated by commissions.
Because financial advisor is a very broad term, asking one how they define it can be helpful in understanding whether or not you are speaking to the person who can help with your needs.
Even though financial advisors may be capable of working with anyone, it’s a good idea to work with someone who is familiar with people who are similar to you or similar to your financial situation. If you recently moved to New Jersey from another state, it could be helpful to know your advisor has already assisted other new residents adjusting to the financial landscape of New Jersey such as higher property taxes.
Early Decision I deadline: Nov. 15
Early Decision II and Regular Decision deadline: Jan. 15
Bucknell enrolls students from all world regions and countries and from all types of socioeconomic backgrounds. Some of our international students receive financial support from their families and sponsors. Others rely on funds from Bucknell for part of their tuition, room and board.
Important Dates
Early Decision I application due
Early Decision II application due
Regular Decision application due
Early Decision I deposit due
TBD
Early Decision II deposit due - early March
Regular Decision deposit due
If you’re interested in becoming a certified financial planner, passing the CFP test is a necessary step. The CFP test is a 170-question multiple choice test that’s designed to thoroughly test your knowledge about financial planning. Preparation is key, as the test has a reputation for being difficult. Developing a plan for study and knowing what to expect on test day can increase your odds of earning a passing grade.
If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.
What Is the CFP Exam?
The CFP test is a comprehensive test that gauges your ability to apply financial planning concepts to real-world scenarios. Passing the test is a requirement for obtaining a certified financial planner designation. The test is administered by the CFP Board three times a year in March, July and November, both in person and through remote testing centers.
To complete the test, you must answer 170 multiple-choice questions. The test is administered in two three-hour sessions. There is a fee to take the test, which is determined by your registration date. The fee schedule is as follows:
You can register to take the CFP test online at the CFP Board website. To register for the test, you must either complete a CFP Board registered program or complete equivalent coursework. Submitted coursework is subject to a transcript review by the CFP Board.
If you opt for the second route, you have to verify your coursework before the test date. Otherwise, your registration will be withdrawn, and you’ll be charged a $500 postponement fee.
You don’t need a bachelor’s degree to take the CFP exam. You do, however, need to complete a bachelor’s degree program within five years of passing the exam.
What Does the CFP test Cover?
The CFP test spans several areas of core knowledge that the CFP Board deems necessary to work as a certified financial planner. Those core areas include:
Each section is assigned a different weighting. For example, retirement savings and income planning account for 18% of the test questions while the psychology of financial planning is just 7%.
All questions are pass/fail and count as one point each toward your score. In terms of the minimum score needed to pass, the CFP Board does not disclose one. Instead, the Board uses the results of the test to gauge how competent someone is to carry out the duties of a certified financial planner. As of November 2022, the test had a 64% pass rate.
How to Study for the CFP Exam
The CFP test is designed to test what you know about financial planning and your ability to apply those concepts to situations you might encounter when working as a financial planner. With that in mind, here are a few helpful tips for preparing for the CFP exam.
Practice makes perfect. And the more problem-solving activities you’re able to complete, the more prepared you may be by the time test day rolls around. Again, what’s most important to keep in mind is how you can use the concepts you’re learning practically when working with clients as that’s what the CFP Board is most concerned with.
What to Expect When Taking the CFP Exam
How you prepare for the day of the test depends largely on whether you registered to take the test remotely or in person. If you’re taking the test at a testing center, you’ll need to have a valid, government-issued ID to gain entry.
You’ll also need to offer a fingerprint, take a photo and complete a body scan upon entering the test center. A body scan isn’t required for remote testing, but you will need to provide a video of your test-taking workspace. And you will need to demonstrate you’re not concealing any cheat sheets on your person.
Before the test begins, the test administrator will go over the rules and regulations of the test center. They’ll review your calculator to make sure it’s up to standard and provide you with a whiteboard to use during the exam. Once the preliminaries are over, you’ll be shown to your test seat.
The test is self-paced but it’s important to keep the three-hour time limit in mind as you work through each section. You’ll have a five-minute tutorial to complete beforehand, followed by 180 minutes to complete 85 test questions. There’s a 40-minute break period, followed by the second 180-minute block to complete the remaining questions.
You’ll have a chance to take a brief survey once the test is over to share your feedback. After you complete the CFP exam, you’ll get your results by email, typically within four weeks.
Is Taking the CFP test Worth It?
Taking the CFP test is worth it if you want to pursue a career as a certified financial planner. You won’t be able to do so without first taking the exam.
Working as a certified financial planner can be rewarding if you’re passionate about helping people to reach their financial goals. The CFP test can prepare you for a wide range of situations you might encounter when working with clients. And it can help you to fine-tune your problem-solving skills.
However, you don’t need to obtain a CFP designation if you’re interested in becoming a certified educator in personal finance (CEPF) or a certified credit counselor. While there are educational requirements that need to be met for those designations, they’re not as rigorous as the CFP exam.
The Bottom Line
The CFP test can seem a little daunting and early planning can be critical to your success in achieving a passing grade. Knowing what the test covers, how to study for it and what happens on the test day can help you to approach it calmly and confidently.
Tips for Growing Your Financial Advisory Business
Photo credit: ©iStock.com/Michele Pevide, ©iStock.com/Sean Anthony Eddy, ©iStock.com/MangoStar_Studio
The post CFP Exam: How to Study and What to Expect appeared first on SmartAsset Blog.
When it comes to developing technical analysis and charting skills, the Chartered Market Technician® (CMT) Designation is where it's at. For financial professionals who are considering this option, obtaining this certification shows potential employers that you have a comprehensive knowledge of technical analysis and could put you ahead of the pack in pursuit of that coveted Wall Street job. If you think a CMT certification might help you chart your career course and get it trending in the desired direction, read on to find out what the program entails and what you'll need to do to succeed.
What's a CMT?
The CMT® Program is administered by the CMT Association. It aims to develop technical analysis as well as professional analytical skills. An additional benefit of the program is that it provides a code of ethics and gives analysts an ethical framework to work within.
Designed as a self-study program, the CMT Association provides a memorizing list and various study aids. Using textbooks, sample exams, most students are able to grasp the material and progress through the exams. This program includes interactive webinars, web-based question-and-answer sessions, and online bulletin boards.
While there are countless technical analysis training programs available, only the CMT is designed to provide broad exposure to the classic literature in the field while emphasizing state-of-the-art analytical techniques. Almost every aspect of technical analysis is addressed in the curriculum - chart pattern identification and measurements, common and obscure indicators, Elliott wave theory, Gann angles, point-and-figure charting, candlestick charts, and other tools.
Why Should You Consider This Program?
If you're looking to work in a traditional finance job, the CMT demonstrates accomplishment to potential employers. The Financial Industry Regulatory Authority (FINRA) accepts successful completion of the first two levels of the examination program as an alternative to the Analysis Series 86 examination for technical analysts. While analysts are still required to take the Regulatory Series 87 examination, which tests for understanding of the strict rules that ensure analyst independence, the Series 86 exemption is likely to be highly valued by potential employers.
But the CMT isn't just for those who want to work as analysts. Potential traders, gain exposure to a wide variety of technical tools, allowing them to learn what fits their trading style and temperament. Even registered representatives can benefit from the CMT program, because their clients are likely to want technical opinions on stocks and the overall market.
What the Program Requires
To be granted the designation, a candidate must pass three examination levels, complete the membership application process, and agree to the CMT Association’s code of ethics. To register for the CMT® Program, individuals must first join the CMT Association as an affiliate member and then enroll in the CMT Program. After enrolling in the Program, candidates can then pay and register for their exam. Successful preparation for each test requires candidates to carefully study and follow the CMT curriculum published by Wiley.
How Long Does It Take?
The CMT Program includes three exams. The first two are in the multiple-choice format and the final test is a grueling four-hour essay exam. Each test is offered twice a year, meaning applicants can complete the program in as little as 18 months. However, most take three years to get through the process. The CMT Association recommends allowing at least 100 hours of study time for each level, and many applicants spend considerably more time on the readings and preparation.
Benefits and Job Prospects
While the first CMT certifications were granted in 1989, the program has dramatically increased in popularity. In 2021, there were more than 4,500 members.
A few of the best-known market technicians have attained this charter: Ralph Acampora, John Bollinger and John Murphy completed this program.
Conclusion
The CMT is the only technical analysis training designed by professionals, for professionals. The program provides the tools investors need to become a technical analyst. Some of the best minds in the industry have completed this certification, demonstrating its value and increasing its recognition. For those serious about technical analysis, this is a program worth considering because it will not only enhance your knowledge - it should also help you make money.
CMT® and Chartered Market Technician® are registered trademarks owned by CMT Association.
Money can’t buy happiness directly, but it seems like paying a financial advisor sure can help.
A new survey found people with more than $1.2 million in household assets report higher levels of happiness when working with a financial advisor compared to those who don’t have an advisor. The finding is part of Herbers & Company’s inaugural Consumer Financial Behaviors Study, which polled 1,000 consumers across the U.S.
A financial advisor can help you manage assets and plan for retirement. Find a trusted advisor today.
“As individuals move past $1.2 million of assets, those who work with financial advisors rapidly increase in happiness, while those without advisors rapidly become less happy,” wrote Sonya Lutter, the certified financial planner (CFP) and licensed therapist who authored the study.
Herbers & Company is a consultancy firm that specializes in helping independent financial advisory firms grow their businesses.
To quantify a respondent’s level of happiness, the survey presented each consumer with a list of 43 questions concerning his or her daily behaviors and interactions. The survey also pinpointed four core principles of happiness – fulfillment, intention, impact and gratefulness – and gauged how much respondents identify with each.
All participants in the survey have at least $250,000 in household assets.
The survey found that 66% of respondents who work with a financial advisor reported heightened levels of all four core factors of happiness. Only 34% of people without an advisor identified with those four principles in the same way.
The results of the study also suggest that those with financial advisors experience greater satisfaction outside of their relationship with money.
“People who have financial advisors are not only happier with their finances, but they are also far happier about their personal relationships and their communication with their partners,” wrote Lutter, a former administrator of applied human sciences at Kansas State University. “While it’s possible that happy couples might be more likely to hire financial advisors, it’s also possible that working with a financial advisor gives couples an opportunity to talk about financial goals, and thereby gives them a happiness boost.”
Then again, the more money a person has, the happier they'll be, right? Not exactly.
Respondents with $1.2 million in household assets reported the same level of happiness, whether they work with a financial advisor or not. Those above that threshold who work with an advisor reported significantly higher levels of happiness than those without advisors.
The largest disparity in happiness was observed among the richest respondents to the survey. Of high-net worth individuals with $6 million or more in assets, those with a financial advisor reported the highest levels of happiness across the study. Meanwhile, those without a financial advisor reported the highest levels of unhappiness in the study, despite owning $6 million or more in assets.
“For those who make it to the top 5% of wealth in the U.S., working with an advisor can mean the difference between being happy with financial success or allowing money to decrease happiness,” Lutter wrote. “It appears that a financial advisor is needed to increase happiness levels above the $1.2 million threshold.”
The old axiom is true, money can’t buy happiness. Then again, a latest Herbers & Co. survey found that people with the most money are happiest when working with a financial advisor. However, those with over $6 million in household assets but no advisor reported the highest levels of unhappiness in the study.
The survey shows happiness levels fluctuate among people with fewer household assets, regardless of working with an advisor or not. But once individuals surpass the $1.2 million mark, those who work with a financial advisor report much higher levels of happiness than those who go it alone.
Photo credit: ©iStock.com/JohnnyGreig
New Year’s resolutions about taking better care of your health, reducing stress or just “prioritizing self-care” are all very popular and demonstrate a commitment to improving your well-being. Financial wellness – making a budget, understanding your personal finances or starting a savings plan – usually doesn’t make the list when you are committing to bettering your overall health.
But did you know that financial stress can be a major contributor to poor health outcomes? According to an October 2022 study by the American Psychological Association (opens in new tab), 72% of Americans reported feeling stressed about money at least some time in the prior month. Researchers have found that unrelenting stress can lead to physical problems like headaches and stomach issues, along with mental health issues like anxiety and trouble sleeping.
It is easy to bury our heads in the sand about finances or rationalize that “retail therapy” is a solution for stress, but we need to acknowledge that some, or perhaps even a lot, of the stress that we may blame on job demands or personal relationships may actually be subconscious reactions to stress about money that we are not acknowledging.
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Ignoring credit card balances, not understanding where your money is going each month or having arguments about money with loved ones may be signs that you need to address your financial wellness as part of your self-care commitment for the new year.
Where do you begin to make your financial security an important part of your resolutions for this year? Be assured that small steps are all that it takes to make a good start.
It’s common to hear that you need to have three to six months of living expenses in a liquid, accessible savings account. If that amount seems overwhelming or would take too long to achieve, begin with the goal of saving one month’s worth of expenses so you have success sooner.
Keep in mind that emergency savings are just that – money to use for an emergency. I hear that people are so focused on keeping the emergency savings amount in the bank that they use a credit card when an real emergency comes up – car repairs, unexpected medical expenses and so on – and then have to pay interest when carrying a credit card balance instead of using the money they put aside to cover such situations.
It’s OK to use the emergency funds (for a real emergency, not just something you want) and then start to rebuild those funds again – that’s exactly what those funds are for!
Financial planning often has a stigma about scarcity. “I can’t take that vacation because I don’t make enough money.” “We can’t afford to live in that neighborhood.” “Budgeting takes away all the fun in life.”
In reality, having control of your financial life can be a huge source of self-esteem. Many times, keeping track of what you regularly spend money on, knowing how much you make and figuring out where you could make different choices are keys to making the life improvements you desire possible.
I have had discussions with clients where they are genuinely shocked that they spend significant amounts of money on things they absolutely don’t care about. By making simple changes to their spending patterns, they can easily make things they do care about happen – but they wouldn’t have even known that was possible without understanding their financial plan. Talk about a huge boost to their energy and life satisfaction!
Give yourself a treat for achieving those financial goals you set (and budget for that, too!). The key to keeping up with our resolutions is to make sure we are enjoying and seeing the benefits of those changes. If you decide that you want to save up for an emergency fund or pay off debt, also set aside a small amount of money to celebrate when you achieve that accomplishment.
One of my friends had a sizable student loan from getting an advanced degree. She made a budget with a goal to pay more than the minimum amount each month so she could pay off the balance as fast as possible, but it was going to take more than two years to pay off the whole amount. She knew that she would get frustrated in those two years if she didn’t plan to have something to look forward to in order to keep going.
She budgeted in the monthly payments to the loan and then set aside $20 extra a month in a reward fund. Every six months, she sat down and added up the amount that she had paid toward the loan, and if was more than $10,000, she booked a massage as a treat using the reward fund to pay for the massage. That small amount she saved paid for a stress-relieving treat and, in addition to the satisfaction of making a large dent in her loan balance, helped her stay focused on her goal to keep on the accelerated-repayment schedule.
Making New Year’s resolutions is easy. The key to being successful and keeping the resolution is to actually understand what you are solving for. If you are looking for a way to be more physically healthy, Improve your mental well-being or make your own self-care a priority, taking the time to understand your financial situation can be a positive step to making your resolution a reality even if you start with small steps.
Your financial adviser is a great advocate for you on your journey to life-long financial wellness.
The CDFA® mark is the property of The Institute for Divorce Financial Analysts, which reserve sole rights to its use, and is used by permission.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Mercer Advisors Inc. is the parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors is registered as an investment adviser with the SEC. Content is for educational and illustrative purposes only and does not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate, but is not guaranteed or warranted by Mercer Advisors.
If you’re interested in becoming a certified financial planner, passing the CFP test is a necessary step. The CFP test is a 170-question multiple choice test that’s designed to thoroughly test your knowledge about financial planning. Preparation is key, as the test has a reputation for being difficult. Developing a plan for study and knowing what to expect on test day can increase your odds of earning a passing grade.
If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.
What Is the CFP Exam?
The CFP test is a comprehensive test that gauges your ability to apply financial planning concepts to real-world scenarios. Passing the test is a requirement for obtaining a certified financial planner designation. The test is administered by the CFP Board three times a year in March, July and November, both in person and through remote testing centers.
To complete the test, you must answer 170 multiple-choice questions. The test is administered in two three-hour sessions. There is a fee to take the test, which is determined by your registration date. The fee schedule is as follows:
Early registration – $825
Standard registration – $925
Late registration – $1,025
You can register to take the CFP test online at the CFP Board website. To register for the test, you must either complete a CFP Board registered program or complete equivalent coursework. Submitted coursework is subject to a transcript review by the CFP Board.
If you opt for the second route, you have to verify your coursework before the test date. Otherwise, your registration will be withdrawn, and you’ll be charged a $500 postponement fee.
You don’t need a bachelor’s degree to take the CFP exam. You do, however, need to complete a bachelor’s degree program within five years of passing the exam.
What Does the CFP test Cover?
The CFP test spans several areas of core knowledge that the CFP Board deems necessary to work as a certified financial planner. Those core areas include:
Professional conduct and regulation
General principles of financial planning
Risk management and insurance planning
Investment planning
Tax planning
Estate planning
Psychology of financial planning
Each section is assigned a different weighting. For example, retirement savings and income planning account for 18% of the test questions while the psychology of financial planning is just 7%.
All questions are pass/fail and count as one point each toward your score. In terms of the minimum score needed to pass, the CFP Board does not disclose one. Instead, the Board uses the results of the test to gauge how competent someone is to carry out the duties of a certified financial planner. As of November 2022, the test had a 64% pass rate.
How to Study for the CFP Exam
The CFP test is designed to test what you know about financial planning and your ability to apply those concepts to situations you might encounter when working as a financial planner. With that in mind, here are a few helpful tips for preparing for the CFP exam.
Start early. While it takes just a few hours to complete the CFP exam, it can take months of study to fully prepare. Depending on how much time you have available, you may want to begin your studies three months, six months or even a year in advance of your anticipated test date.
Take advantage of CFP resources. The CFP Board provides free study resources, including a full-length practice exam, study guides and a mentoring program to help you prepare. Those benefits are all included with your test registration fee.
Create a study schedule. Having a set study schedule can help you to get organized and keep an appropriate pace so that you’re able to cover everything before the exam. You can set your schedule to include specific days and times, which can help you stay committed to the plan.
Consider a course. Taking a CFP test prep course might be helpful if you’re more comfortable learning in an instructional environment, rather than just doing a self-paced study. You’ll typically pay a fee for these courses, but it may be worth it if you’re able to glean new knowledge or study skills as a result.
Practice makes perfect. And the more problem-solving activities you’re able to complete, the more prepared you may be by the time test day rolls around. Again, what’s most important to keep in mind is how you can use the concepts you’re learning practically when working with clients as that’s what the CFP Board is most concerned with.
What to Expect When Taking the CFP Exam
How you prepare for the day of the test depends largely on whether you registered to take the test remotely or in person. If you’re taking the test at a testing center, you’ll need to have a valid, government-issued ID to gain entry.
You’ll also need to offer a fingerprint, take a photo and complete a body scan upon entering the test center. A body scan isn’t required for remote testing, but you will need to provide a video of your test-taking workspace. And you will need to demonstrate you’re not concealing any cheat sheets on your person.
Before the test begins, the test administrator will go over the rules and regulations of the test center. They’ll review your calculator to make sure it’s up to standard and provide you with a whiteboard to use during the exam. Once the preliminaries are over, you’ll be shown to your test seat.
The test is self-paced but it’s important to keep the three-hour time limit in mind as you work through each section. You’ll have a five-minute tutorial to complete beforehand, followed by 180 minutes to complete 85 test questions. There’s a 40-minute break period, followed by the second 180-minute block to complete the remaining questions.
You’ll have a chance to take a brief survey once the test is over to share your feedback. After you complete the CFP exam, you’ll get your results by email, typically within four weeks.
Is Taking the CFP test Worth It?
Taking the CFP test is worth it if you want to pursue a career as a certified financial planner. You won’t be able to do so without first taking the exam.
Working as a certified financial planner can be rewarding if you’re passionate about helping people to reach their financial goals. The CFP test can prepare you for a wide range of situations you might encounter when working with clients. And it can help you to fine-tune your problem-solving skills.
However, you don’t need to obtain a CFP designation if you’re interested in becoming a certified educator in personal finance (CEPF) or a certified credit counselor. While there are educational requirements that need to be met for those designations, they’re not as rigorous as the CFP exam.
The Bottom Line
The CFP test can seem a little daunting and early planning can be critical to your success in achieving a passing grade. Knowing what the test covers, how to study for it and what happens on the test day can help you to approach it calmly and confidently.
Tips for Growing Your Financial Advisory Business
Partner for growth. If you’re interested in scaling your financial advisory business, you don’t have to go it alone. SmartAsset’s SmartAdvisor platform makes it easy to match with vetted financial advisors who fit your ideal client profile, without having to do any active canvassing. You can get leads delivered to your inbox and you only pay for those you connect with. If you’re ready, get started now.
Keep an eye on trends. Knowing what your clients want is key to better meeting their needs. It’s also central to attracting new prospects to your business. SmartAsset’s recent survey reveals the top year-end moves advisors are discussing with clients.
Photo credit: ©iStock.com/Michele Pevide, ©iStock.com/Sean Anthony Eddy, ©iStock.com/MangoStar_Studio
The post CFP Exam: How to Study and What to Expect appeared first on SmartAsset Blog.