Not sure if this goes in careers or watercooler, but whatever…friday rant…
Since having the CFA designation allows you to skip most of the work I decided to take a shot at this. Like it or not, many clients have more respect for a CFP than a CFA and I also figured there would be some good useful tips to pick up along the way.
Cracking open the capstone textbook…this thing is a ******* joke. There’s pages on proper body posture…“you should sit squarely to the client to let them know your paying attention”. “Closed-ended questions are not always the best way to get your client to open up”. The majority of the textbook, say 75%, is just an example of various financial plan forms. The conclusion that I’m reading is, you don’t need to understand why the computer is recommending an investment strategy, you just need to know how to read the computers conclusion and give it to the client with a smile on your face. Any real education is apparently outside the relm of the CFP curiculum and to be done in the advisors free time.
My respect for those holding that certification has been greatly reduced.
Yeah, the CFP is basically Financial Advising 201 (I suppose breaking your teeth at Merrill is the 101 class). The CFP does require a fair amount of continuing ed though, so at least they make the advisors continue to stay abreast of market conditions / events / products.
Depending on my mood, and no offense to any of the mentioned professions, here are the analogies I use when someone associates the CFP with the charter…
CFP:Charterholder as…
car salesman:chief automotive engineer
accounting clerk:CPA
medical device salesman:orthopedic surgeon
paralegal:attorney
Yes, I know they aren’t perfect and the CFA designation is not regulatory. Would be nice if it replaced the Series 65 though.
I did the educational requirement for the CFP. You are right. It is a joke, especially the Investments portion. In fact I’d wager that the series 7 is more difficult than the investments portion of the CFP. Granted there are some valuable things in the CFP curriculum such as tax planning, estate planning etc, which are not in the CFA curriculum, however, if you are a charterholder, you would be better served to learn this stuff on your own rather than doing the CFP, IMHO. The CFP makes you a jack of all trades and a master of none. In fact, if you are an advisor, you should not even be messing around with advising people on estate planning, that would be the unauthorized practice of law.
I chose to never take the CFP final for this reason, among others. Not to mention that the CFP is damn expensive. I also thought that the CFP letters would actually hurt me more than help me.
If you have your CFA don’t bother with CFP. CFP is hacksaw to the max. If you are an advisor and your clients value the CFP more than the CFA, it’s time to upgrade demographics/firm
Yeah, I would like to see a CFA level exam be a requirement for an IAR.
At least most of the CFP course work is waived if a charterholder wants to become a CFP. But I, too, don’t want to be associated with that designation. I’m not a salesman. I second the comment about finding new clients/firm. I imagine the Claritas certificate would offer a better comparison. I think the CFP has its place, but comparisons to the charter is a non-starter. Does anybody really think they are similar? I don’t think CFPs make that claim…I would prefer a retail peddler be a CFP than not.
There is no way that the CFA would ever be a requirement to be an IAR. It’s way to difficult of an exam. Also, it has little to nothing to do with serving the retail world, even though there is the wealth planning portion in level III. Honestly if I were a client looking for a financial advisor, I’d make sure he/she at least had the CFP. Like I said there are some valuable thing in the CFP curriculum that are not in the CFA, but I think just getting the CFP alone makes you dangerous.
this is exactly what an academic counsellor at my alma mater stated when i queried about whether any of the courses i took would qualify for CFP course/exam exemption. she said, if you have the CFA (i was a L2 or L3 candidate at the time), don’t even bother with the CFP. it’s true. the added benefit will no way be greater than the extremely lofty ~$500/year membership fees and the brutally strict CE requirements.
To the OP comments regarding the CFP… it really depends on your current work position and future potential. If your an Advisor in some capacity (client facing) than your firm would likely want you to have the CFP and CFA, and yes, most mass affluent retail clients probably don’t even know what CFA stands for.
If you are working as an equity analyst, research etc…then the CFP would have little value.
In my opinion, th requirements to obtain the CFP credententials in general are not as rigerous as they should be. You don’t need a university degree. You need to pass a bunch of pre-req courses, obtain some work experience and pass the CFP exam. The material is not terribly difficult to learn however if you work in retail (client facing) its better to have than not.
I am sure there is way to get CFP without a degree as CFA also does not require one to have a degree to become a charterholder. If you have the relevant exp. you will get the charter.
As for “Advisors (client facing) jobs where employers would most likely require you to have both CFA and CFP”? I can’t imagine advisors at AXA, Edward Jones, or even at wire houses are required have these designations.
The education requirement for attaining CFP® certification includes two main parts:
Complete college or university-level coursework through a program registered with CFP Board, addressing the major personal financial planning areas identified by CFP Board’s most recent Job Analysis Study; and
Verify that you hold a regionally accredited college or university bachelor’s degree or higher (accreditation must be recognized by U.S. Department of Education at the time the degree is awarded).
The education requirement for attaining CFP® certification includes two main parts:
Complete college or university-level coursework through a program registered with CFP Board, addressing the major personal financial planning areas identified by CFP Board’s most recent Job Analysis Study; and
Verify that you hold a regionally accredited college or university bachelor’s degree or higher (accreditation must be recognized by U.S. Department of Education at the time the degree is awarded).
Designations (CFP, CFA) in general are not required to work as an Advisor (or alot of other roles either) but demonstrate that you have achieved a level of competency beyond the minimum (licensing) requirements.
Your average AXA or EJ Advisor is likely focusing on the mass affluent market where they may use model portfolios for IM and focus on the clients goals and wealth planning. This is where they get more value from the CFP than a CFA.
If you are working for a firm (i.e. bank) in the private client division (for example) than you would likely be required to have a CFP for that job and likely want you to have a professional designation as well (CFA, or Accounting).
Yo, the CFP designation is the cheesiest, most douche “credential” that an investments person could rep.
Wait, I take that back – it’s actually the CIMA. Nothing is worse that seeing some bustout’s piece of toilet paper (aka resume), where they purport to have “attended the Wharton School” for that sickening 2 week requirement. It’s like, come on bro, you’re not fooling me, these people rented a farken room at Wharton and you are writing down the few hours you spent there as if you obtained a real degree…so phony.
hahaha that is hilarious. Wharton for CIMA. yeah I have seen that before. I am planning on going to Wharton )for the real deal) in 2 years. Also planning on going to the moon. Hopfeully the former will be more doable.