In the world of financial planning, the Certified Financial Planner® (CFP®) designation is considered to be the gold standard. It represents a commitment to education, ethics and the highest standards of fiduciary responsibility. At Thinking Big, both Jim Marrocco and I proudly hold the CFP® designation. 

The CFP Board is an ever-evolving organization whose overarching mission is to “advance the financial planning profession for the benefit of the public.” And because they’re always pushing to make sure that the CFP® is the recognized standard of excellence in the profession, they require that its designation holders stay current with the latest and best ethical requirements and planning practices. By holding the CFP®, we’re holding ourselves accountable to being on the forefront of fiduciary financial planning.

In this post, I’ll explore what it means that we’re CFP®s, why we chose this path, and how we go beyond the CFP Board’s framework to provide the best possible holistic financial life planning for our clients. 

What It Means to Be a CFP® Professional

Becoming a CFP®, and then maintaining the designation, is no small feat. It requires extensive education and experience, along with a rigorous exam, and then the commitment to continual education and adherence to a strict code of ethics. 

• Education: Candidates must hold a bachelor’s degree and have completed a CFP Board-approved educational program, which covers a broad spectrum of financial planning topics, including investment management, tax planning, retirement planning, estate planning, insurance planning, and more. The CFP Board-approved education component usually takes at least a year on its own to complete. 
• Experience: Candidates also need to prove that they have at least three years (equal to 6,000 hours) of full-time professional experience in the field, or two years (equal to 4,000 hours) if they’re in an apprenticeship role (the apprenticeship role has stricter requirements to ensure the candidate is doing comprehensive planning directly with clients). 
• Exam: After completing the education component, candidates must pass the CFP exam, renowned for its difficulty. The exam is six hours long, and includes 170 multiple-choice questions on more than 100 topics and scenarios related to financial planning. It usually takes about 1,000 hours of studying to prepare for the exam. It assesses a candidate’s ability to apply their knowledge to real-life financial planning scenarios, ensuring they can provide practical solutions to clients. In August 2023, the CFP Board reported an overall pass rate of 67%. 
• Continuing Education: The commitment to learning doesn’t end with certification. CFP professionals must complete 15 accredited continuing education hours per year to stay current with the latest industry trends, regulations and financial planning best practices. This dedication to learning ensures that CFP® holders remain at the forefront of the financial planning field. 
• Fiduciary Standards and Code of Ethics: One of the hallmarks of the CFP® designation is its strict adherence to a fiduciary duty and a comprehensive Code of Ethics. As fiduciaries, CFP® professionals are obligated to act in their clients’ best interests, putting the clients’ financial well-being ahead of all other considerations. Abiding by those ethics is a no-brainer for us, but by holding the CFP® designation, we’re showcasing how seriously we take our role. 

Why We Chose the CFP® Path

Both Jim and I chose to become CFP® professionals to send the clear signal of our dedication to being fiduciary financial planners. While there are many well-intentioned, well-educated people doing financial planning without the CFP®, we believe being CFP®s goes beyond a mere certification–it’s a promise to act in our clients’ best interests at all times and provide the highest standard of financial planning available. 

It’s also worth noting that Jim’s CFP® designation would technically be enough for us to show that our team is adhering to the CFP Board’s Code of Ethics. It’s the responsibility of a CFP® to make sure that any supervised employees are upholding the same fiduciary standards. The fact that I’ve also gained my CFP® designation shows that I’m not just riding on Jim’s certification. I wanted to fully commit to this path. Because of this, Jim and I can use our skills equally to explore the boundaries of traditional financial planning and create a financial planning framework that revolves around the individual–not just their money.  

Going Beyond the CFP® Framework

While the CFP® designation signifies a high level of competence and an ethical commitment, it’s by no means the endpoint of our learning journey as planners. For instance, the CFP Board’s framework for financial planning outlines seven practice standards (see image below), and while these are the latest in best practices for financial planning, they only represent a foundation rather than the entire structure.