What is a CFP^®?

Did you know that anyone can call themselves a financial adviser or a financial planner? No government body or regulatory agency governs the use of these terms. However, titles like these suggest a level of competency and experience.

"CFP" stands for Certified Financial Planner. The CFP^® certification is the recognized standard of excellence for the personal financial planning industry. To become certified, one must have academic training in financial planning. Some applicants choose CFP Board-Registered academic programs that last as long as two years. Then the applicant must successfully pass a two-day, ten-hour rigorous exam. The applicant must also complete three years of full-time relevant work experience. Once all of those requirements are completed, the applicant must agree to adhere to the CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards.

As the CFP^® certification has become increasingly recognized, a significant number of imitators has emerged. Some groups offer titles with words such as "Certified" or "Registered", but require minimal effort to acquire their titles. Make certain that you understand the substance of an adviser's credentials to ensure that you are working with someone who is well equipped to handle your needs.

Complete information regarding the CFP^® certification can be found on the website for the Certified Financial Planner Board of Standards, Inc. at www.cfp.net