5 Basic Things You Need to Know About CFP Course
If you are looking to excel in the world of finance and financial planning, you need to look beyond the ordinary. While there are many financial courses and programs that boost your career but few can match up to the level of CFP or Certified Financial Planning. Apart from the premium pay packages and the career progression, this certification guarantees you a designation that is hard to match.
It is important to note that there are handful of people who hold this certification in India than doctors, space scientists, and those in biotech research. To give you the numbers there are less than 2000 people in India with this Certification. Yes, it’s that rare! If you are looking to be one here are five basic things that you need to know about CFP Course.
1. Difference Between CFPs and Financial Advisor
A Financial Planner is a generalized term that is used to describe any professional who offers financial consultancy service. However, once taking and completing the CFP course successfully earn the badge of being a Certified Financial Planners. As we have already mentioned this is a rare badge and almost guarantees you a position at the top of the pyramid as far as careers in Financial Planning, Insurance Planning, Risk Management, and Estate Planning are concerned.
2. Benefits of CFP Course
CFP course prepares you for the challenges that can’t be solved by an average financial planner. As you prepare for the course and take the exam you would become proficient in the financial planning framework and gain the skills to deliver financial proposals that take into account maximum growth and risk mitigation. It offers a wide range of career opportunities across several businesses that include the insurance industry, investment banking industry, and risk analysts.
3. CFP Course Details
The CFP certification program is divided into six separate modules, and you will have to sit for five exams. Module — I doesn’t require any exam and its weightage is included in the exams that you’d need to take for the five remaining modules. Here are the six modules for the exams.
I. Introduction to Financial Planning
II. Risk Analysis and Insurance Planning
III. Retirement Planning and Employee Benefits
IV. Investment Planning
V. Tax Planning & Estate Planning
VI. Advanced Financial Planning
4. Eligibility for CFP Course
There are few eligibility requirements that every CFP aspirant must meet to earn this certification. There are two ways to take the exam which include the Regular Pathway and the Challenge Status Pathway These include -
a. Undergraduate Degree with minimum 50% marks from a recognized college.
b. NCFM number through the NSE Academy
Candidates who have already cleared CA, CFA, ICWA, CAIIB, CS, Ph.D., LLB, MPhil, etc can seek the Challenge Status Pathway. Here are candidates are required to sit for the sixth and the final module in Advanced Financial Planning and can earn their charter in six months.
5. CFP Course Differs from Other Financial Courses
If you get through the CFP course details, you’d see the stark difference it has in comparison with the courses and degrees you have so far accomplished in life. Unlike other courses here the emphasis is purely on problem-solving and critical thinking instead of the textbook theories that most other courses have. You must understand the rationale instead of focussing on rote learning that may have held you in good stead so far.
To sum up, we have covered the most important aspects of CFP course details. If you are interested in taking this course you need to get started with your preparations. There are a handful of institutions in India that are authorized education partners for the CFP program, and you need to sign up with the best. These courses train you in the skills of problem-solving, time management and offer you the latest study materials to ensure success in the exam.
