CFP® Study Tip #1: Know the Exam
CFP® test preparation begins with understanding what you’re up against. The CERTIFIED FINANCIAL PLANNER™ Exam [SC1] consists of 170 multiple-choice questions of three types:
- Stand-alone questions: Two to three sentences long, with four answers to choose from
- Short scenario questions: Page-long scenarios with a series of multiple-choice questions associated
- Case study questions: Longer scenario questions (several pages), with 8-12 questions that follow pertaining to the scenario
You’ll have six hours total—split into two, 3-hour sessions of 85 questions each—to complete all 170 questions.[1]
In addition to knowing the format, you also want to make sure that you understand the topics covered on the exam:
- Professional Conduct and Regulation (8%)
- General Principles of Financial Planning (15%)
- Risk Management and Insurance Planning (11%)
- Investment Planning (17%)
- Tax Planning (14%)
- Retirement savings and Income Planning (18%)
- Estate Planning (10%)
- Psychology of Financial Planning (7%)[2]
By knowing both the format and content to expect, you can hone your focus and make the most of your CFP® study.
CFP® Study Tip #2: Study Tax Law
In addition to the heavy-hitting subject areas like income planning and general financial planning principles, you’ll notice that tax planning also accounts for 14% of CFP® Exam questions. Of course, you’ll want to make sure you’re familiar with current tax laws, income tax fundamentals, and calculations, but you’ll also want to study tax related to financial planning as part of your CFP® test preparation. These topics include tax implications related to property transactions, donations, and trusts and estates.
CFP® Study Tip #3: Create a Realistic Schedule
You may have great intentions for your study strategy, but you need to plan your schedule to include CFP® test preparation—or else you won’t be ready on exam day.
Take a look at what you have on your plate: school, work, personal life, family, etc. Then find a sustainable, reoccurring time slot where you can add time for studying. Maybe you get up an hour earlier each day, or block out two hours on Mondays, Wednesdays, and Fridays, or dedicate a whole afternoon on the weekends—there’s no “one right answer.”
The most important thing is that you design a schedule that’s vigorous enough to complete your CFP® study before your test date, but practical enough to avoid burnout and allow time for your other priorities.
With The BIF Review, you can choose a self-paced option or our more intensive, premium program with more instructor-led sessions, deeper dives into highly testable topics, and more resources all in an eight-week review course.
CFP® Study Tip #4: Practice Multiple Choice Questions
As mentioned in our first CFP study tip, the CFP® Exam is entirely multiple-choice.
This means that proper CFP® test preparation includes practicing multiple-choice questions in addition to exam concepts. By learning how to interpret the questions and narrow down answers, you set yourself up with a good chance of success, even if you aren’t completely sure of the answer.
Likewise, you’ll avoid missing questions on concepts that you do know, simply because of a misinterpretation of the question.
CFP® Study Tip #5: Practice Concept Application
The CFP® Exam tests your ability to apply financial planning knowledge to real-life client scenarios. It’s not enough to simply recall memorized information; you must take your understanding of exam concepts and translate them into actionable solutions—just as you would in real life.
When you review exam topics, study with the lens of application, rather than memorization. For example, you’ll want to think less along the lines of “What does this term mean?” and more of “How would I use this concept for a client?”
CFP® Study Tip #6: Take the CFP® Practice Exam
Your CFP® Exam fee includes access to the CFP Board’s practice exam to put your CFP® study to the test.
You’ll sit for the full, timed 170 questions, just as you would on the real CFP® Exam. Although the questions you’ll see here aren’t the exact same ones you’ll see on the exam, they represent the same format and cover the same concepts, with solutions available for each question for your review.
This simulation lets you experience the full test length, format, and questions before you tackle the real thing. You’ll also get instant feedback upon completion to help you learn your areas of opportunity so you can better focus your study before taking the exam.
Take advantage of this resource included in your registration fee, as part of your CFP® test preparation.
CFP® Study Tip #7: Get Support
The process to becoming a CFP® professional is challenging, and trying to go through this alone can lead to getting off track. Having a supportive community is essential to preparing for the CFP® Exam. This support could come from a personal support system like family and friends to help you stay positive and keep your eyes on the prize, or a community of other CFP® candidates who will keep you accountable and motivated toward your CFP® certification goal.
CFP® Study Tip #8: Get a Review Course
Perhaps the most valuable of all these CFP® study tips is to find a CFP® Exam prep course that helps you pass the exam on your first try. You’ll know exactly what you need to study, learn the concepts you need to know, and put them into practice just like you will on the exam.
The BIF Review from the Boston Institute of Finance focuses on exactly what you need to study at the exact level it’s presented on the exam. Even more important, each lesson is taught by practicing CFP® professionals in a progressive training method designed to maximize knowledge retention.
Whether you’re an experienced financial advisor who just needs the extra review structure, or an entry-level professional looking for more comprehensive support, BIF Review offers a course package to suit your needs and guide you to exam-day success. Get started today!
