Many MBA graduates with specialization in finance ponder how they can get all the rewards of this exciting profession and have a business of their own. The modern world of finance with multinational multibillion dollar companies leave one with an impression that the resistance is futile and the only option one has is to work for one of these companies. Surprisingly enough, this is not true at all. Now more than ever there is a need for private practitioners capable of helping people to can meet their life goals through the proper management of financial resources.

In addition to the opportunity to earn a good income, you will have the satisfaction of helping people from all walks of life solve their financial problems and reach their financial goals. You will enjoy the company of other like-minded professionals and become part of a dynamic, growing profession.

The information on this web page will answer some of the questions you may have about a career in financial planning and becoming a Certified Financial Planner licensee.

CFP licensees are individuals who must meet the initial certification and re-licensing requirements of the CFP Board. The CFP certification process involves completing an extensive course of study in financial planning, passing a comprehensive examination, showing experience in financial planning and agreeing to adhere to a code of ethical conduct. The purpose of this credentialing process is to assure the public that financial planners who are authorized to use the CFP certification mark and the marks CFP and Certified Financial Planner meet rigorous professional standards. Not all persons who call themselves "financial planners" are CFP licensees. However, the Certified Financial Planner and CFP designations are the most widely recognized in the field, and consumers increasingly are seeking financial planners who have distinguished themselves by earning this professional credential.

The CFP designation was introduced in 1972 and has become the most widely recognized financial planning credential among consumers. This recognition, in turn, gives CFP Practitioners added credibility. In addition, the CFP certification process requires candidates to acquire a broad-based education, which not only builds the competency of the planner, but also increases the client's confidence in the planner's abilities. The fact that CFP licensees voluntarily agree to adhere to a high standard of conduct and must submit to a disciplinary review process should they violate this standard also provides clients with the reassurance they need when selecting a financial planner.

Yes. The growth in demand for the CFP credential attests to the fact that this is a valuable, much needed service profession. As life spans increase due to improved health care and as the post-war "baby boomers" advance toward retirement, many individuals will seek professional assistance in managing scarce financial resources.

According to a recent survey conducted by the National Endowment for Financial Education, the average combined gross earnings of a CFP licensee are $66,500 per year. Income ranges from $18,000 at entry level to well over $100,000 for the experienced planner. Beyond the financial compensation, however, most successful planners report that the most rewarding aspect of their jobs is the opportunity to develop long-term relationships with their clients and make a real difference in helping people reach their financial goals.

Planners are usually compensated in one of four ways:

1. Fees. Fees are based on an hourly rate, flat rate per plan, and a percentage of the value of the client's assets and/or income, or a combination of these methods.
2. Fees and commissions. Fees are charged as above, but the planner also may receive commissions from investment or insurance products sold as the plan is implemented. Some planners may offset all or a portion of their fees against commissions earned.
3. Commissions. No fee is charged, but the planner is compensated from products sold to the client when the plan is implemented.
4. Salary. Planners who work for credit counseling organizations, credit unions, universities, banks or other large corporations may be paid a salary. Some businesses also compensate employees via a combination of salary and commission.

Whatever your method of payment, however, if you are a CFP licensee, you must fully disclose your method and source of compensation to your clients prior to doing business with them. Other disclosure information mandated by the CFP Board's Code of Ethics and Professional Responsibility includes educational background, experience, material conflicts of interest and philosophy of service.

The CFP Board has established a certification process that candidates must complete before being licensed to use its marks. Certification requirements are grouped into four areas: education, examination, experience and ethics.

The best place to start from is the Certified Financial Planner Board of Standards itself:

In conclusion, I would strongly urge you to contact your local University or College and ask whether they have a CFP Board approved Financial Planner Education Program. Many of these programs will provide you with college credits towards an accredited degree. You can obtain a list of approved educational institutions from the CFP Board of Standards, Inc. by requesting their "General Information Booklet"

Just like the CFP license can open you the doors to your own private practice as a financial planning consultant, the title of Chartered Financial Analyst would provide you with all the credibility you need for providing financial consulting services to other businesses. The program takes longer than CFP (3 years minimum), but it is worth every penny and every minute you put into it.

The Chartered Financial Analyst (CFA) Program is a globally recognized standard for measuring the competence and integrity of financial analysts. Its curriculum develops and reinforces a fundamental knowledge of investment principles. Three levels of examination measure a candidate's ability to apply these principles at a professional level. The CFA exam is administered annually in more than 70 nations worldwide.