CFP vs CWM – Which is a Better Credential? Choosing the right career has never been easy and I am so sure it is even more difficult if you have no clue about the professional courses you have no information about. Let’s take up a common debate of CFP (Certified Financial Planner) vs CWM (Chartered Wealth Manager)
We will discuss the following in this article –
- CFP vs CWM Infographics
- What is a Certified Financial Planner (CFP)?
- What is Chartered Wealth Manager (CWM)?
- CFP vs CWM Exam Requirements
- Why pursue CFP?
- Why pursue CWM?
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CFP vs CWM Infographics
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Let’s understand the difference between these two streams with the help of this CFP vs CWM Infographics.
CFP vs CWM Summary
| Section | CFP | CWM |
|---|---|---|
| Certification Organized By | CFP is organized by Certified Financial Planner Board of Standards or the CFP board | CWM is organized by the American Academy of Financial Management or the AAFM |
| Number of Levels | CFP is a single examination spread over 2 days approximately for 10 hours. | CWM has to be cleared in two levels |
| Mode of examination | CFP is an online examination which is spread over 2 days for 10 hrs | CWM are again online examinations |
| Exam Window | Held thrice in a year in Mar. 14–21, 2017 July 11-18, 2017 and Nov. 7-14, 2017 | CWM exams both are scheduled as per Pearson Vue. |
| Subjects | •General Principles of Finance and Financial Planning •Insurance Planning •Employee Benefits Planning •Investment and Securities Planning •State and Federal Income Tax Planning •Estate Tax, Gift Tax, and Transfer Tax Planning •Asset Protection Planning •Retirement Planning •Estate Planning •Financial planning and consulting | CWM covers capital and the financial market, on the principles of financial service organizations, investment and portfolio management and other financial market knowledge. |
| Pass percentage | In 2016, the overall pass rate was 70 percent | 50% marks in all subjects with no negative marking |
| Fees | The actual CFP exam cost is $695.However, you can apply up to six weeks before the date. If you do that, your cost would be $595. If you apply during the last two weeks before the date, then your CFP exam fees would come up to $795. | The registration fee is 400 $ which includes access to the study material. |
| Job opportunities /job titles | CFP legal financial planner, estate planner, investment planner, insurance planner, tax consultant, etc | CWM portfolio and asset manager, wealth manager, broker and market analyst, heads of financial accounts, financial controller, private banker, etc |
What is Certified Financial Planner (CFP)?
This course gives you a mark or a professional certification of a financial planner. The course is conferred by the Certified Planner Board of Standards or the CFP board which is bases in the USA. This course is available at 25 other organizations that are affiliated with this board. Organizations based outside the USA are marked as the international owners of CFP.
To be authorized to use this designation the candidate needs to pay a continuous certification fee along with meeting the courses education criteria, appearing for examinations, experiencing the financial planning and of course following its ethical standards by following is code of ethics. Both the USA and the UK have different specifications to acquire this certificate.
What is Chartered Wealth Manager (CWM)?
CWM certification is given by AAFM that is the American Academy of Financial Management that is based in the USA. This certified council also grants other certificates. The main focus of this course is concentrating on the theory of the capital and the financial market, on the principles of financial service organizations, investment and portfolio management and other financial market knowledge addition to the profession.
The completion of CWM is an assurance that you will definitely be able to perform the following financial management jobs appropriately.
- Measuring the value of all listed companies
- Perform analyses of financial estate
- Understand the time horizon of portfolio management
- Balance the returns and risks appropriately
- Look and identify market opportunities
- Handle and manage market products
- Handel asset allocations
- Manage clients and their requirements
CFP and CWM exam requirements
CFP
To clear CFP the candidate needs to meet the following examination requirements
- The candidate needs to clear an examination that is spread over 2 days for about 10 hours under which he has to solve a zillion of questions with multiple choices. This exam definitely cannot be taken lightly.
- The examination is held in different set locations three times a year that are March, July, and November.
- The examination fee needs to be paid to appear for this exam. It is also important to know that if you cannot study by yourself or if you have an issue understanding the subjects you must take assistance.
CWM
To clear CWM examination you require accomplishing the following expectations of the course
- You need to clear level I and level II examination. The enrolment of this examination is done on the AAFM website.
- A certain fee is applicable to register for this examination.
- To be eligible for this examination you need to have 3-year valid experience in the same field.
- Eligibility criteria also include a graduation degree in economics, taxation and wealth management.
Why pursue CFP?
If you are good at client management especially good at financial planning for your clients by managing their money, their investments, etc you must pursue CFP to add value to your talent and your knowledge. You can work on individual clients amongst the organization and handle their long term and short term goals. With the help of your CFP knowledge, you can guide your clients on estate planning. Legal restrictions, financial laws, investment planning, tax planning, and insurance benefits, etc.
CFP gives you the ability to understand the client’s business in order to offer a complete financial solution to the client. The moral responsibilities of a CFP are preparing to interview the client about his finances, income and outgoing of his money, prepare a financial plan accordingly, execute the plan and monitor the outcome of the plan.
You can work as a self-employed, or work in an organization as a financial advisor, these organizations can be an insurance company, a bank, a mutual fund company or an AMC.
Why pursue CWM?
If you are working as a portfolio and asset manager, or wealth manager, or corporate account manager, broker, and market analysts, etc, this degree that is the CWM will definitely boost your career by adding value to your resume.
On completion of CWM, you can ensure you will definitely be capable of assessing the value of all listed companies, perform as a financial estate analyst, understand the time horizon of portfolio management, balance the risks and returns of the assets, identify the opportunities of the market, understand market products, handle allocation of assets and of course manage clients.
You can continue to work in the same company or switch jobs. After completion of CWM, you can also start up your own business. CWM gives the complete potential to your skills and knowledge.
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What next?
If you learned something new or enjoyed the post, please leave a comment below. Let me know what you think. Many thanks and take care. Happy Learning!
Pratik Phunguskar says
Hey Dheeraj,
This article is really awesome, was very helpful for me.
Thanks
Dheeraj Vaidya says
thanks Pratik for your kind words! :-)