I've looked at some of the literature and web sites of the three largest
certification organizations: The CFA (Certified Financial Analyst,) CFP
(Certified Financial Planner) and ChFC (Chartered Financial Consultant.)
I really can't tell much difference between each of these. I was hoping
someone out there that's a more seasoned finance veteran might be able to
help me tell the difference between the various certifications (if there is
one!)
A little background on me which might help answer the question of which of
these is best for me: I really enjoy finance and analyzing fun stuff like
derivatives and options pricing. I think I'd make a good advisor to
individuals, (I'm always helping my friends and family figure out debt
reduction plans and investment decisions,) but I'm really averse to all the
grinding work of building up my own financial planning practice from
nothing. Right now I work for a fortune 500 company and the salary and
benefits are just a bit too comfortable... so I see myself being happier
working for a company such as Vanguard, Goldman Sachs, the Fed, etc., as
opposed to being an individual financial planner. Any and all comments
welcomed.
To respond via email, remove the underscore from my email address.
Thanks to all the kind souls out there who take their time to help me out!
The CFA is not a financial planner. A Chartered Financial Analyst requires
expereince in the securities industry, investment banking, investor
relations or the like. Unless you are interested in haveing credentials
for this industry, it will not be valuable for marketing your services.
The CFP certification has the most recognition and is related to the Appolo
group, a very profitable publicly traded corporation that supplies the
training for the certification. Don't take this wrong, they do keep a
level of independence, but the two organizations have some shared history.
The ChFC is provided by the same folks that bring you the CLU for the life
insurance industry.
Mark Eckman, CPA
There are differences and a lot of similarities. Each mark has education
requirements topped off with a formal exam as part of the credential
process. The CFP education process is somewhat loose, but in the end you
must pass a rigorous exam to obtain the mark. The CFA mark is offered by
AIMR.Their education process is more formal than the CFP. There are three
levels of exams. The ChFC also requires formal education with courses
offered by the American College.
There are also experience requirements. The CFP work experience is not as
strict as the the two marks. The CFA experience is geared the investment
side of the business. The ChFC allows you to use formal higher education
as part of the experience requirement
Each mark has a Code of Ethics that the planner is to adhere to.
The latter two marks concentrate on the investment management side of the
business. The CFPs tend to cover a greater range of activity. If you are
interested solely in the investment side of the business the CFA and ChFC
marks may be fore you. The time and effort to obtain those marks are more
strict than the CFP mark.
> A little background on me which might help answer the question of which of
> these is best for me: I really enjoy finance and analyzing fun stuff like
> derivatives and options pricing. I think I'd make a good advisor to
> individuals, (I'm always helping my friends and family figure out debt
> reduction plans and investment decisions,)
Derivatives and option pricing seem to be a little more sophisticated
processes than giving advice to family and friends. I hope you have some
malpractice insurance <grin>
but I'm really averse to all the grinding work of building up my own
financial planning practice from
> nothing. Right now I work for a fortune 500 company and the salary and
> benefits are just a bit too comfortable..
.. so I see myself being happier working for a company such as Vanguard,
Goldman Sachs, the Fed, etc., as
> opposed to being an individual financial planner. Any and all comments
> welcomed.
>
If you think working for a Vanguard, the Fed etc. will not be grind I would
suggest you do some careful exploring before you leave the cozy womb of
your present employer.
--
Howard Davidson CPA/PFS
38 Menlo Place
how...@rochester.rr.com
"If you want to make enemies, try and change something"
Woodrow Wilson
>
>
Apollo Group (best known for its University of Phoenix subsidiary) bought
the College for Financial Planning from NEFE (I think this stands for the
National Endowment for Financial Education) about 2 years ago. NEFE is a non
profit organization and Apollo Group is not (as an investor who recently
held a short position in Apollo, I would also beg to differ with your
statement that Apollo is "very profitable").
Anyway, Apollo now owns the College for Financial Planning in Denver, which
offers a course to prepare people for the CFP Board Exam. Several other
places offer similar courses (Dalton, American College outside of
Philadelphia and some Universities). The CFP Board exam is given not by
Apollo (or its subsidiary, the College for Financial Planning), but by the
Certified Financial Planner Board of Standards (a non profit organization
that is not related to the College for Financial Planning, but happens to be
located in Denver, just like the College)
-
Barry K
bka...@NOSPAMusa.net
"Mark S. Eckman, Jr." <mark-...@att.net> wrote in message
<SNIP>
> The CFP certification has the most recognition and is related to the
Appolo
> group, a very profitable publicly traded corporation that supplies the
> training for the certification. Don't take this wrong, they do keep a
> level of independence, but the two organizations have some shared history.
<SNIP>
>
> Mark Eckman, CPA