The Business Journal

Posts Tagged ‘Chartered Financial Analyst’

Once you’ve determined that you need a financial planner, look into the different professionals who label themselves as such. Anyone can call himself or herself a planner; no federal, state, or local laws require certain qualifications, such as those imposed upon other professionals, including accountants and lawyers. However, several associations and organizations grant credentials that signify a planner’s level of education. Some of the most commonly recognized designations follow.

Certified Financial Planner (CFP). This designation is earned by people who have been licensed by the Certified Financial Planner Board of Standards (CFP Board). All licensees have completed financial planning courses through a CFP-Board-registered college or university. These people must complete a tenhour two-day comprehensive exam to prove their expertise in financial planning,insurance, investing, taxes, retirement planning, employee benefits, estate planning, and risk management.

The test is difficult and requires the test taker to apply his or her financial planning knowledge to three case studies and multiple choice questions. In addition to having passed the tests, a CFP licensee must possess a certainamount of work experience in the financial services industry, have a defined amount of college education, abide by a strict code of ethics, and fulfill continuing education requirements. Chartered Financial Analyst (CFA). This designation is earned by those who pass a series of three exams administered by the Association for Investment Management and Research (AIMR) of Charlottesville, Virginia. CFA charterholders must demonstrate their expertise in investment valuation and management, asset valuation, portfolio management, and industry ethics. CFAs must have a bachelor’s degree, adhere to the AIMR Code of Ethics, have at least three years of work experience, and a high level of professional conduct. Many CFAs also have branched out into full-service financial planning. The best time to seek a CFA is when you have a great amount of money to invest and you need the guidance of an investment professional.