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Comparing Financial Advisor Credentials: CFP v. RICP

We are sometimes asked to explain the importance of the Certified Financial Planner (CFP®) designation and how it compares to some other designations. In this age of artificial intelligence, we decided to turn to ChatGPT to opine on this and here’s the result:

The CFP® (Certified Financial Planner) designation is generally considered harder to obtain than the RICP® (Retirement Income Certified Professional) designation. Here's why:

Scope and Content of CFP & RICP

  • CFP®: The CFP covers a broader range of financial planning topics, including investment planning, retirement planning, tax planning, estate planning, education planning, and insurance. It requires in-depth knowledge across these areas.
  • RICP®: The RICP is more specialized, focusing primarily on retirement income planning. It does not cover as wide a range of financial topics as the CFP.

CFP & RICP Educational Requirements

  • CFP®: Candidates must have an undergraduate college degree and complete an extensive educational curriculum, usually requiring about 18-24 months of study. This includes coursework in financial planning, tax planning, estate planning, and retirement.
  • RICP®: The RICP does not require a college degree and the curriculum typically takes less time to complete, often around 9-12 months, as it focuses specifically on retirement income strategies.

CFP v. RICP Examination Difficulty

  • CFP®: The CFP exam is known to be challenging, requiring candidates to pass a rigorous 170-question exam over 6 hours. The exam covers the full breadth of financial planning topics and requires a high level of mastery.
  • RICP®: The RICP exam is split into three exams corresponding to its three-course curriculum. It is generally considered less demanding than the CFP exam.

Experience Requirements

  • CFP®: To earn the CFP designation, candidates need 6,000 hours of professional experience in the financial planning field (or 4,000 hours through an apprenticeship model).
  • RICP®: There are no experience requirements to obtain the RICP designation, although having industry experience is recommended.

Recognition and Versatility

  • CFP®: The CFP is a widely recognized designation and is considered the gold standard for financial planners. It is highly versatile, covering many areas of personal finance.
  • RICP®: The RICP is more specialized and is highly regarded in the retirement planning niche, but it does not carry the same broad recognition as the CFP.

Conclusion

We agree with ChatGPT - the CFP designation is generally harder to obtain due to its broad scope, rigorous exam, and extensive experience requirements. A  CFP® is better equipped to help clients deal with the various complexities of retirement, which are far more extensive than just "income." A  CFP® professional can help navigate tax planning, portfolio construction, retirement planning, estate planning and long-term care insurance just to name a few.