CRPC vs. CFP Designations for Financial Advisors

Chartered Retirement Planning Counselor (CRPC) and Certified Financial Planner™ (CFP®) are two common professional designations that many financial advisors hold. The requirements for the CFP® are more difficult to complete, and a CFP® will generally understand a broad range of financial matters, ranging from budgeting and saving to tax and estate planning. A CRPC, by comparison, is typically held by an advisor early in his or her career and will have expertise focused on retirement planning.

A financial advisor with certification in a specific area can help you address those needs and goals.

What Is a CFP?

The CFP® certificate is a better-known and more highly regarded financial advisor certification. It is overseen by the CFP® Board, which requires certificate-holders to possess significant previous educational and work experience and pass a challenging exam. CFPs® must also follow a strict code of ethics, including acknowledging the duty to act as a fiduciary for clients.

CFP® applicants must also pass a background check to screen for any previous criminal cases, customer complaints, disciplinary actions or employment problems. Prerequisites include a four-year degree from an accredited university and at least 6,000 hours of prior experience in the financial services business.

CFP® applicants also have to complete a separate college-level capstone course in financial planning from a CFP® Board-approved provider. Each of the several modules in the course has its own exam. This course typically requires another one to three months of study. Some applicants with pre-existing professional licenses, such as attorneys and accountants, can qualify for a shorter capstone course.

Next is the six-hour CFP® exam, a notoriously challenging test consisting of 170 questions on a wide range of financial advisory topics. These include creating a financial plan and saving for retirement as well as managing an investment portfolio, protecting assets with insurance and tax and estate planning.

Before getting their CFP® certificate, applicants who pass the test have to agree to a code of ethics that, among other things, requires them to adhere to a standard of fiduciary duty. This means they will put their clients’ interests before theirs in recommending investments. Other advisors may follow a less strict suitability standard, which may permit them to recommend investments that generate more profits for them at their clients’ cost.

Many CFPs® are fee-only advisors, meaning they are compensated only by fees charged to their clients. Fees may be flat fees for a particular service, such as creating a financial plan or calculated as a percentage of the investment assets they are managing. Some CFPs® may also receive commissions on investments purchased by their clients.

Situations Where a CFP® Can Be Especially Helpful

The scope and depth of training that a CFP® receives means that such a professional can offer insight and guidance to clients facing numerous financial challenges and questions. Here are a few of them:

Tax planning
Estate planning
Retirement planning
Insurance planning
Investment management

Speaking to industry experts might help you decide how this certification can benefit your situation.

What Is a CRPC?

A client reviewing their financial plan with their CRPC.

As opposed to a CFP®, the CRPC is offered as a certificate to advisors who are starting their careers by the College for Financial Planning, which is part of Kaplan. It focuses on helping advisors become expert in helping their clients prepare for retirement.

CRPC applications have no specific prerequisites for education or work experience. However, they do have to complete a course of study on topics including assessing needs before and after retirement, investment management, Social Security, taxes and estate planning.

The CRPC course is available through the College of Financial Planning. Courses are presented either with live instructors or in a self-paced, on-demand format. The live instruction course lasts approximately six weeks. The college also offers a number of other financial advice designations, and the CRPC course can be used to satisfy the requirements for those certifications, as well.

After completing the coursework, CRPC candidates can sit for the required online exam. This is an 85-question, closed-book, proctored exam that takes three hours.

CRPC designates must agree to follow the College of Financial Planning’s code of ethics, calling for them to meet standards of integrity, objectivity, competency, confidentiality and professionalism. They also have to re-certify every two years, including completing 16 hours of continuing education.

Situations Where CRPCs Can Offer Valuable Help

While there are many types of potential clients and a broad array of situations where a CRPC’s expertise and services can make a material difference, here are three common such situations.

Near retirement: A CRPC can work with a client to create a retirement income plan that takes into account their retirement savings, Social Security benefits, pension plan income, and other sources of income. The advisor can help the client understand how much they can safely withdraw from their retirement accounts each year, how to minimize retirement income taxes, and how to create a sustainable income stream that will last throughout their retirement.

In retirement: A CRPC can help a client who is already in retirement manage their retirement income, including creating a tax-efficient withdrawal strategy, managing their investment portfolio, and adjusting their income plan as their needs and goals change. The advisor can also help the client with estate planning, including creating a plan for passing on their assets to their heirs in a tax-efficient manner.

Concerns over healthcare costs: A CRPC can also help a client understand their options for healthcare coverage in retirement, including Medicare and long-term care insurance. This kind of advisor can also help the client create a plan for paying for healthcare expenses in retirement, taking into account their retirement income and other assets.

CRPC vs. CFP: Key Differences

CRPC vs. CFP® Comparison

Key Areas	CRPC	CFP®
Professional Focus	Retirement planning	150-question, six-hour multiple-choice exam
Prerequisites	Six-week college-level retirement planning advisory course	Background check, four-year college degree, 6,000 hours of financial industry work experience, college-level financial planning course
Examination	85-question, three-hour exam	150-question, six-hour multiple choice exam
Conduct code	College of Financial Planning ethics code	CFP® code of ethics, fiduciary standard
Continuing education	16 hours every two years	30 hours every two years

How to Decide What Type of Financial Advisor You Need

Choosing between a financial advisor with a CRPC designation and one with a CFP® credential starts with understanding your personal financial goals. If you’re primarily focused on retirement planning includes income strategies, Social Security timing and managing withdrawals, a CRPC may be well-suited to your needs. However, if you want a broader approach that includes budgeting, investments, insurance, and estate planning, a CFP’s® more comprehensive training might be the better fit.

The complexity of your financial situation also plays a major role in deciding which type of advisor to work with. A CRPC typically specializes in helping individuals prepare for and transition into retirement, while a CFP’s® education covers all areas of financial planning. If you own multiple assets, have a business, or manage investments across various accounts, a CFP’s® holistic expertise could provide more well-rounded advice.

Designations are important, but so are experience and service offerings. Some CRPCs and CFPs® work at large firms and focus mainly on investments, while others provide full-scale financial planning, tax strategies and estate coordination. Ask potential advisors about their specialties, how they’re compensated, and whether they act as fiduciaries, meaning they’re legally required to put your interests first.

Bottom Line

There are some key differences when it comes to the differences between a CRPC and a CFP®. The CFP® certificate demonstrates the ability to advise clients on a wide array of financial topics from budgeting to estate planning. Meanwhile, the CRPC is focused on retirement planning. Requirements for the CFP® certificate are significantly more extensive and challenging than the CRPC certificate, which is intended for advisors who are early in their careers.

Tips for Finding a Financial Advisor

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Financial advisors may have many other certificates demonstrating expertise in various aspects of financial advice and planning. All certificate programs are not created equal, with the best calling for extensive education and work experience, while others require only passing a brief exam and paying a fee.

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