Considering taking the CFP exam.... what do you think?

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kadye
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Considering taking the CFP exam.... what do you think?

Post by kadye » Sun Dec 01, 2019 10:29 pm

I find I spend most of my internet time on this forum, and, when I am talking to my close friends, we/I tend to talk about personal finance fairly often.

I am thinking about taking the CFP exam though I have no well thought out plan about what to do with it.

I am not in a position to change a career. I make good income from my current job and it gives me enough free time to explore other opportunities on the side.

What potential opportunities will a CFP open (part time or consulting)? I have not thought this through very well so please throw any and all you can think of.

tesuzuki2002
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Re: Considering taking the CFP exam.... what do you think?

Post by tesuzuki2002 » Sun Dec 01, 2019 10:33 pm

Sounds fun! I'm not a CFP... but I have proven myself in my circles... I consult and help friends make decisions and I just work out a cash deal if / when they want to consult with me about their options.

It can't hurt to have a CFP... but if you have a proven track record... really all people want to proven results.

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Brianmcg321
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Re: Considering taking the CFP exam.... what do you think?

Post by Brianmcg321 » Sun Dec 01, 2019 10:34 pm

I hope you enjoy sales. Having a CFP will not get you anything unless you can draw clients into the door.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

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kadye
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Re: Considering taking the CFP exam.... what do you think?

Post by kadye » Sun Dec 01, 2019 10:44 pm

Brianmcg321 wrote:
Sun Dec 01, 2019 10:34 pm
I hope you enjoy sales. Having a CFP will not get you anything unless you can draw clients into the door.
... that is the last thing I want to do with it. Ideally, I work for a group that brings clients and I do the "advice". Hard to pull this off?

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cookymonster
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Re: Considering taking the CFP exam.... what do you think?

Post by cookymonster » Sun Dec 01, 2019 10:49 pm

These kinds of threads are coming up more regularly. The CFP certification requires far more than passing the examination. The main barrier to entry for intelligent career changers and side hustlers is the 6000 hour experience requirement. Investigate that before you invest the time and resources in the education and exam.

123
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Re: Considering taking the CFP exam.... what do you think?

Post by 123 » Sun Dec 01, 2019 10:53 pm

kadye wrote:
Sun Dec 01, 2019 10:44 pm
... that is the last thing I want to do with it. Ideally, I work for a group that brings clients and I do the "advice". Hard to pull this off?
Yes, likely no such opportunities. Once the salesperson reels the customer in the customer likely just gets a template portfolio and the purchases and trades are either automated or done by back office people/computers with no customer facing. The adviser periodically meets/phones the customer to maintain the relationship and spouts off some common drivel that common to all customers with that same template. By using the same template the answers to customer questions can be anticipated and the adviser seems more knowledgeable.

Here at bogleheads we do our own templates, or pick a simple one if it works for us like a Target Retirement Date/LifeStrategy/Fund-of-funds.

The easiest way to be involved with this (without the sales part) would be to work for one of the outfits that employers hire to advise their employees. Lots of repetitive group meetings involved.
The closest helping hand is at the end of your own arm.

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Brianmcg321
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Re: Considering taking the CFP exam.... what do you think?

Post by Brianmcg321 » Mon Dec 02, 2019 12:55 am

kadye wrote:
Sun Dec 01, 2019 10:44 pm
Brianmcg321 wrote:
Sun Dec 01, 2019 10:34 pm
I hope you enjoy sales. Having a CFP will not get you anything unless you can draw clients into the door.
... that is the last thing I want to do with it. Ideally, I work for a group that brings clients and I do the "advice". Hard to pull this off?
Does this exist? That would be nice wouldn’t it.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

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galawdawg
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Re: Considering taking the CFP exam.... what do you think?

Post by galawdawg » Mon Dec 02, 2019 6:05 am

One of my retirement projects has been to "self-study" the CFP course materials to further educate myself on financial matters. It has been quite interesting. I purchased all of the books on eBay for a total of about $50. The set I purchased was nine volumes from Keir Educational, great condition but a couple of years old which means the income tax planning volume isn't up to date but I can supplement that with a newer volume when I need to. You could also take the course work, the self-paced online course here runs $3,550 through the University of Georgia, the instructor led online course is $4,550.

In order to become a CFP, you must meet both the education requirements and the experience requirements (as well as passing the rigorous exam). Unless you go to work for a financial services firm (or teach personal financial planning in a university setting), the experience requirement will likely be an insurmountable obstacle to actually becoming a CFP.
Because CFP® certification indicates to the public your ability to provide financial planning without supervision, CFP Board requires you to have 6,000 hours of experience through the Standard Pathway, or 4,000 hours of experience through the Apprenticeship pathway that meets additional requirements. Qualifying experience may be acquired through a variety of activities and professional settings including personal delivery, supervision, direct support, indirect support or teaching.

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cookymonster
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Re: Considering taking the CFP exam.... what do you think?

Post by cookymonster » Mon Dec 02, 2019 11:06 am

I have an interest in making a second career out of this but only think I would want to work independently and completely on my own schedule. My plan is to take all the courses piecemeal for about $400 each starting in 2020 (I might qualify for the lifetime learning credit). At some point I may lose the commitment or interest, and if so, I can just stop without that much of a sunk cost. After that, if I want to keep going, I will likely try to network with the local FPA, maybe try to find some XYPN events, and then figure out if there's a way I want to build up experience besides just setting up shop. You need an attester for the experience, which is one important reason to seek mentorship. That likely requires offering something in return (pro bono work for a firm?). It would be gravy to get the experience and full certification, but the vast majority of advisors lack this, and I'm not convinced that it matters that much to clients. I think that completing the course work and exam is worthwhile regardless.

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