What Is a Chartered Financial Consultant (ChFC)?

There are many certifications that a financial advisor can earn, such as a Certified Public Accountant (CPA) and Certified Financial Planner™ (CFP®). The Chartered Financial Consultant (ChFC) certification isn’t as common as some others, but it still holds plenty of value for potential clients. For instance, a ChFC can help someone with tax planning, retirement planning and wealth management.

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What Is a Chartered Financial Consultant (ChFC)?

Chartered Financial Consultant (ChFC) is a certification offered by the American College of Financial Services for financial advisors and planners. Established in 1919, the school is the only institution to offer this program.

The ChFC designation is awarded to financial advisors who have completed a rigorous program of study. This includes a wide range of financial topics such as insurance, income taxation, retirement planning and estate planning.

This comprehensive education equips ChFCs with the expertise to provide sound financial advice tailored to their clients’ unique needs. Unlike some other financial certifications, the ChFC program emphasizes practical, real-world applications, ensuring that advisors are well-prepared to address the diverse challenges their clients face.

In many non-official ways, ChFC is an advanced form of the CFP® credential. Both types of professionals offer full-service financial advice across investments, retirement planning and wealth management.

However, the ChFC certification process is considerably more difficult than its CFP® counterpart and is also quite a bit pricier.

Qualifications Needed to Become a ChFC

Despite the overlap in knowledge between the ChFC and CFP® designations, they are not technically related. A professional does not need to be a Certified Financial Planner™ to earn the Chartered Financial Consultant title.

The American College of Financial Services requires the following to receive the ChFC certification: ¹

• At least three years of full-time, relevant experience within the previous five years.
• Take eight courses issued by the American College of Financial Services, with subjects including investment and retirement planning, insurance planning and the financial planning process.
• Pass eight proctored exams, one after each course.
• Maintain at least 30 continuing education credits every two years.

Each course costs $985, though some specialized courses can be pricier. ² The full eight-course designation package costs $6,545.

What Services Does a ChFC Offer?

Unlike other financial advisors who may focus on specific areas, a ChFC is trained to offer a holistic approach to financial management. This includes everything from investment strategies and retirement planning to estate planning and risk management.

• Wealth management. A ChFC in wealth management can help you structure your investments and integrate them with your financial plan. They can work with you to choose a path that best meets your personal goals and your financial position.

• Personal financial planning. This involves helping the client assess their personal finances so they can determine how best to save, spend and budget for the future. A ChFC will work with clients not only to help them meet their goals but also to set them realistically. This includes accounting for risk, insurance, taxes and more.

• Tax planning. This involves helping the client to plan around income and other taxes. They can create a tax strategy that maximizes a client’s position when it comes time to pay income, property, capital gains and any other applicable taxes.

• Retirement, college and estate planning. A ChFC can help clients to prepare for major financial goals. This includes building a retirement account and managing it over time, preparing for a child’s college education and, if necessary, estate planning.

Whether you’re planning for retirement, managing investments or navigating complex tax issues, a ChFC can provide the expertise and guidance you need to make informed financial decisions. By working with a ChFC, you gain a trusted partner dedicated to helping you achieve financial success.

What a ChFC May Not Be Able to Help With

When looking at financial services, it’s important to understand the limitations of various professionals. A ChFC can help you make a budget and build a financial plan, but this is ultimately a general certification. There are certain specialized tasks that they do not typically perform, including:

• Tax preparation. A ChFC can help you create a tax strategy, but they can’t prepare your taxes for you. To understand your specific tax position or receive tax preparation services, it’s better to see a CPA.

• Execute investment trades. There is no regulatory requirement to be a ChFC, so not all will be able to help with this. However, some ChFCs may be able to trade investments in your name. While your ChFC can help you prepare an investment strategy, actually investing the money for you isn’t a given.

• Provide legal advice. Often, there’s a substantial overlap between legal advice and financial consultation, but that doesn’t mean you should confuse the two. A ChFC can create an investment strategy for asset management, but they cannot advise you on legal matters, as only a lawyer can do that. This can be particularly relevant in estate and tax planning.

Now, this does not mean that a ChFC can never provide these services. A ChFC can have multiple credentials, or at least access to those fields of expertise. Your advisor may also hold a CPA, be registered with a brokerage or operate as part of a law firm.

However, it’s important to understand that the ChFC credential alone does not qualify someone to opine on specialty subjects.

How to Find a ChFC to Work With

To find a ChFC, begin by researching potential candidates online. Many financial advisors list their credentials on professional networking sites and their own websites. Look for advisors who prominently display the ChFC designation, as this indicates they have met rigorous educational and ethical standards.

Additionally, be sure to review past client reviews and testimonials. This will help you gauge their satisfaction and the advisor’s effectiveness.

The American College of Financial Services maintains an online database that lets you find professionals with the certifications it offers, including ChFCs. By browsing advisors in the college’s online network, you can ensure you find a legitimate ChFC.

On the flip side, you can also personally search the web for a ChFC with the qualities you need. Should you take this route, the college’s website also features a verification tool. By entering the advisor’s name into the database, you can learn if their ChFC designation is legitimate.

Effective communication is essential in any advisor-client relationship. When meeting with a potential ChFC, assess their ability to explain complex financial concepts clearly and simply. Additionally, consider whether their communication style and personality are a good fit for you.

A strong rapport can enhance the collaborative nature of financial planning and ensure that you feel comfortable discussing your financial situation.

Services You Can Get From Advisors With Other Certifications

Beyond retirement-specific designations, many financial advisors hold certifications that cover a broader range of services.

Understanding what each credential prepares an advisor to do can help you identify the right professional for your situation. This is especially important if your needs extend beyond retirement planning to areas such as tax strategy, estate planning or investment management.

Chartered Financial Consultant

A Chartered Financial Consultant (ChFC®) covers many areas of financial planning, including insurance planning, income taxation, retirement planning and estate planning. The designation requires coursework and proctored exams through the American College of Financial Services. Advisors with this credential may work with clients on insurance strategies, long-term planning and business succession considerations alongside retirement planning.

Certified Public Accountant

A Certified Public Accountant (CPA) with the Personal Financial Specialist (PFS) credential combines tax expertise with financial planning knowledge. This can be useful for clients whose financial plans involve complex tax considerations, such as retirement withdrawals, Roth conversions or the sale of a business. A CPA/PFS may provide both tax preparation and financial planning services.

Chartered Financial Analyst

A Chartered Financial Analyst (CFA®) focuses primarily on investment analysis and portfolio management. ³ The CFA designation requires passing three levels of exams and extensive study of financial markets, asset valuation and portfolio construction. Clients with large investment portfolios or complex asset allocation needs may seek guidance from a CFA professional.

Specialized Credentials

Other specialized credentials may address specific financial situations. For example, a Certified Divorce Financial Analyst (CDFA®) may assist clients during divorce by analyzing financial settlements and long-term financial implications. ⁴ Advisors with the Certified Investment Management Analyst (CIMA®) designation often focus on portfolio construction, asset allocation and investment risk management. ⁵

Each of these certifications prepares advisors to address different aspects of a client’s financial life. Some individuals prefer to work with a single advisor who provides multiple services, while others work with several professionals, such as an investment manager, tax professional and estate attorney.

Reviewing an advisor’s certifications and the services associated with them can help determine whether their expertise matches your needs.

Bottom Line

The ChFC certification requires a more rigorous course of study than the CFP credential. As a result, ChFC advisors may charge more than their CFP® counterparts. Remember to include this in your evaluation of potential advisors. Unlike some advisory certifications, ChFC is not necessarily a mid-career credential. Since a financial advisor only needs three years of practice before earning this certificate, it is quite possible to complete the requirements early on in one’s career. It is then common for a financial advisor to seek at least one major credential (either the ChFC or the CFP®) as soon as practical.

Financial Planning Tips

• Building a financial plan on your own can be time-consuming, but a financial advisor can help. 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.
• A financial consultant can only help you if you know what you want out of your investments. If you aren’t sure how much risk you can tolerate, how much you’ll need your investment to grow or how much inflation and capital gains tax will affect your investment, SmartAsset’s investing guide may help you figure out your first steps.

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