Certified Financial Planner (CFP)

Definition

A Certified Financial Planner (CFP) is a professional designation for individuals who have met rigorous education, exam, experience, and ethical requirements in financial planning. CFPs are qualified to provide advice on a variety of financial matters including investments, retirement planning, estate planning, and insurance.

5 Must Know Facts For Your Next Test

1. CFPs must complete extensive coursework covering over 100 financial topics.
2. To become a CFP, candidates must pass the CFP Board's comprehensive exam.
3. CFPs are required to adhere to a strict code of ethics and professional responsibility set by the CFP Board.
4. Continuing education is mandatory for CFPs to maintain their certification.
5. The CFP designation is recognized internationally and signifies expertise in financial planning.

Review Questions

Related terms

CPA: Certified Public Accountant; an accounting professional who has passed the CPA exam and met state licensing requirements.

CFA: Chartered Financial Analyst; a certification for investment professionals awarded by the CFA Institute.

Financial Advisor: A professional who provides financial guidance and services to clients based on their specific needs.