How to Prepare for the CFP^® Exam

For many financial professionals getting started in the industry, the CFP® certification serves as the first major milestone in their career. With over 100,000 active CFP® professionals in the United States, the credential is one of the most widely recognized symbols of competency among financial planners.¹

Earning this respected credential acts as a signpost to potential clients, letting them know that a professional has dedicated themselves to education beyond the basics and has a strong understanding of the core competencies needed to perform the necessary functions of a financial advisor.

However, there are several factors to consider aside from whether or not the CFP® is a good fit for you — and perhaps the most important item that any prospective CFP® professional must plan for is the CFP® exam.

What Does the CFP^® Exam Look Like?

The CFP® exam is held three times annually: March, July, and November. Testing consists of an eight-day window during which hopeful CFP® professionals must earn a passing grade to earn the credential.

The exam consists of 170 questions covering a variety of topics broken up into sections. These sections address the following categories:

• professional conduct and regulations
• general financial planning principles
• risk management and insurance planning
• investment planning
• tax planning
• retirement savings and income planning
• estate planning
• psychology of financial planning

The exam is graded on a pass or fail basis and the CFP Board does not disclose the minimum score required to pass the exam. Needless to say, the exam is not easy. According to the results of the latest round of exams, the CFP Board announced a 65% pass rate for first-time test takers. However, with the appropriate preparations, steps can be taken to improve your odds of passing.

Preparing for the CFP^® Exam

The first step in preparing for the CFP® exam is registration. Registration for any given exam window typically opens about five months prior and costs $925, with $100 discounts or additional fees possible for those who register during the respective early bird or late windows.

Once registration is complete, the logical next step is to study. When asked about the process of preparing for the exam, our CFP® Certification Education Program Director Chet Bennets, CFP®, ChFC®, CLU®, RICP®, CLF® said, “The CFP® exam is rigorous, and success requires disciplined, strategic preparation. Candidates who consistently perform best typically have a structured study plan, use comprehensive review courses, and engage in frequent practice exams to build both competence and confidence.”

Fortunately, with the CFP® being one of the most commonly held credentials across the financial services industry, there are a variety of resources available to help study for the exam. Practice exams are readily available in a litany of locations across the internet, ranging from the full-length practice exam featured on the CFP Board’s website to smaller tests that give prospective test takers a feel for the type of questions that will be included in each section of the exam.

Education for the CFP^® Exam

Additionally, there are many options for more robust study plans. Our CFP® Certification Education Program offers seven courses covering topics critical to the CFP® exam and provides learners with strong context to help them comprehend the materials, resulting in 72% of those who learned with The College passing their exam, well above the national average.² Similar programs may vary from one institution to another, but they can also offer access to additional practice exams, study groups, and other resources that help those enrolled in the program build confidence about passing the exam and build a strong understanding of the material.

As Bennets states when talking about the best preparation methods, “Understanding not only the material but how it applies practically to client scenarios is key. The goal is to master the content, not just memorize it.”

Ultimately, registering for the CFP® exam is one of the most important steps an early-career financial professional can take. As such, it is critically important to take the necessary steps to prepare for this exam and maximize your chances of passing.

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