Friday, 18 May 2012

Online CFP Degrees: Info for Certified Financial Planners

In financial planning, certification is one of the most widely recognized credentials. Though no education is explicitly required, passage of the Certified Financial Planner exam is aided by diploma or master's programs in financial advising.

Certificate Programs for Certified Financial Planners

A personal financial advisor can earn the Certified Financial Planner (CFP) credential, one of the most recognized credentials for financial planners. with three years of relevant experience and the passage of the exam. Short certificate and degree programs which focus on preparation for the CFP exam are common, and deal primarily with concepts, law, mathematics and paperwork suited for online delivery.

Program Information and Requirements

Certificate programs for certified financial planning generally require little to no background in finance for entry; however, most programs are recommended for college graduates or working professionals. Programs focus their curricula almost solely on the skills needed to take and pass the financial planner certification exam.
In addition to a computer and high-speed Internet connection, students may be required to purchase a financial calculator.

List of Common CFP Courses

Certificate programs generally cover topics found on the CFP exam, ranging from investment planning to income tax estimates.

Introduction to Financial Planning

This introductory course gives students an overview of the many facets of financial planning. Student learn how clients' goals can be achieved through saving and investments, while managing risk factors.

Investment Planning Course

The investment planning course covers the fundamentals of building portfolios, allocating assets, and planning for clients' financial futures. Additional financial planning topics include bond valuation, derivative instruments and pooled investments.

Income Tax Planning Course

This financial planning course provides an overview of the impact that taxes have on financial future. Topics cover tax laws, tax calculation methods, exclusions, deductions and credits. Student also look at the levels of taxation as they apply to S corporations, limited liability companies, C corporations, proprietorships and individuals.

Retirement Planning Course

This course covers skills in managing clients' retirement goals. Lessons cover how to analyze retirement goals, types of retirement plans and Social Security.

Career Information for Graduates

Nearly 62,000 personal financial advisors held the CFP designation in 2010, according to the Certified Financial Planner Board of Standards (www.cfp.net). Passage of this certification exam is generally what these smaller certificate courses are focused on. The U.S. Bureau of Labor Statistics recorded almost 150,000 personal financial advisors in 2009 and expected to see over 30% growth in the financial planning industry from 2008 to 2018, a figure well beyond the average of all industries (www.bls.gov). The average salary for financial advisors was $69,050 as of 2008, but this did not include bonuses typical of the industry.

Master's Degrees in Financial Planning

Many master's-level programs offered online provide emphasis in financial planning as well as preparation for the CFP exam. Though not as common as a bachelor's degrees, the master's degree can provide a gateway to employment as a manager of financial practices.

Program Information and Requirements

As a master's degree, the online program requires students to have an accredited bachelor's degree. This program entails a full graduate-level curriculum with approximately 40-50 credits of instruction

CFP Courses at the Master's Level

Master's-level financial planning programs are typically founded on a business or economics curriculum. As such, the financial curriculum is augmented by graduate-level classes in research and management.

Estate Planning Course

This class covers all financial aspect of estates, including ownership, transfer, settlement and taxes. In addition to practical study, students also look at ethical issues in the field of estate planning.

Insurance and Risk Management Course

In addition to monetary growth, financial planners must also learn to manage the risks clients encounter. Topics in personal, property, disability and other insurance help students learn about options for individuals or families.

Financial Planning Practicum

At the graduate level, students take one or more of these 3-credit courses which study financial planning cases. Student may be required to arrange these cases with a local financial firm, but most often the case study analysis is set up by the school.

Career Information for Graduates

Despite the fast growth in financial planning, the U.S. Bureau of Labor Statistics expected a highly competitive market for personal financial advisors (www.bls.gov). Though a master's degree is not required for employment as a CFP, students with these degrees may stand out among a growing pool of applicants. Master's degree-holders may also be eligible for positions managing a group of financial experts.

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