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Comparision Between CFP and CWM Certification. Difference between Financial Planning and Wealth Management
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DIFFERENCE BETWEENFINANCIAL PLANNING AND WEALTH MANAGEMENT
Deepak Jain, CFP, CWM
DIFFERENCE BETWEENCFP AND CWM CERTIFICATIONS
Deepak Jain, CFP, CWM
CFPCM and CWM®
Certified Financial Planner Chartered Wealth Manager
Difference Between Financial Planning and Wealth Management
Financial Planning relates to creation and execution of a strategy to achieve a set of financial goals.
Financial Planning is passive management of wealth through asset allocation and risk management.
Wealth Management deals with creation, accumulation, preservation and enjoyment of wealth.
Wealth Management involves active management in terms of identifying and taking advantage of opportunities to create and enjoy wealth and can even include sharing of wealth through philanthropy.
Financial Planning Wealth Management
Difference Between Financial Planning and Wealth Management
Whereas, Financial Planning is a supportive or auxiliary component that addresses broad goals or issues (e.g. college funding, cash flow modeling, estate tax estimates and funding, spendthrift provisions within a trust, multi-generational family lifestyle funding, etc.)
Financial planning usually means creating a strategy for accumulating wealth for retirement and personal goals.
One way to view Wealth Management, would be as a comprehensive or specific set of plans and strategies designed to manage a set of assets or one large category of assets (e.g. an investment portfolio, closely held business, commercial real estate, etc.) towards specific outcomes.
Wealth Management is more comprehensive.
Wealth Management provides greater attention to detail.
Financial Planning Wealth Management
Difference Between Financial Planning and Wealth Management
Financial Planning is the construction of the basic “blueprint” for an individual or family to follow. It will include asset allocation, taxation, cash flow management, a “safety fund”, insurance and basic risk management, and the construction of a foundation estate plan including living documents.
Once an individual accumulates enough wealth, and this is a moving target for each person, they start thinking about Wealth Preservations and Wealth Transfer ,now we are into “Wealth Planning”.
At this wealth “breakpoint”, an individual starts to think differently. They will entertain more advanced strategic ideas to transfer wealth efficiently and minimize taxation.
Financial Planning Wealth Management
*Areas of Learning Include
*In the above representation areas of learning not covered by CFPCM Certification are included and any common area of learning has been Intentionally Excluded
Learning Outcomes of Certifications
CWM® Certification CFPCM certification
Enter into the spectrum of Wealth Management Products
Enter into the spectrum of Financial Planning Products
Learn more about Banking, Equity Analysis, PMS, Mutual Fund, Alternate Investment Products, Real Estate, International Taxation, Estate Planning, Insurance, etc.
Learn More about Risk management, Retirement Planning, Direct Taxation and Estate Planning.
Understand the various Portfolio Management Techniques and Managing Clients Asset Allocation to its optimization
Understanding and Applying the financial planning process in the practice of financial planning
Start Catering to HNI & UHNI Clients along with your existing clientele
Risk and insurance decisions in personal Financial Planning and understand Retirement need analysis techniques
Liaising with large corporate clients for debt syndication and structured equity advisory
Optimize strategies to make asset management recommendations
Building investments proposition for consumer banking domain and creating a financial planning platform for investment advisory services
Consider potential opportunities & constraints & assess Information to develop strategies & collect the quantitative & qualitative information required to develop a financial plan
Universe of Client Handling
Based on the Size of Clients’ Portfolio
HNI = USD 1 Million
UHNI = USD 5 Million
Fast Facts
Basic Certification Differences
Parameters CWM® certification CFPCM certification
Global Certification - Territorial Limitation
The certification is awarded directly by the parent body AAFM®, US which makes the CWM® certification truly global and is accepted globally without any territorial limitation. The candidates do not have to undergo any additional certification / examination if he / she want to pursue their career in any other jurisdiction.
The certification is awarded by the Indian Chapter i.e. FPSB India which restricts the certification to be global in true sense and is recognized in India only. The candidates will have to undergo additional certification / examination, if he / she want to pursue their career in any other valid country.
Career Avenues Analyst, Research, KPO, Banking, Brokerage Firms, Mutual Fund Houses, Private Banking, Wealth Management firms, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory
Banking, Mutual Fund Houses, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory
Examination There are 2 levels of examinations i.e. Level 1 and Level 2. Online Examination
There are five examinations. Online Examination - Daily basis
Courseware Qualitative & Standardized Courseware, being provided by AAFM India
The courseware is not provided by FPSB India and needs to be developed by EP
Experience 3 Years for Experience PathwayNo Experience Requirement for Certification
3 Years for Certification
Basic Certification Differences
Parameters CWM® certification CFPCM certification
Pathway to Register
Compulsory Pathway - EligibilityPassed minimum 12th Standard
Experience Pathway - EligibilityPassed Graduation 3 years of minimum work experience.
Regular PathwayPassed minimum 10th Standard
Challenge Status Pathway Candidate must hold a professional qualification 3 years of minimum work experience.
Career Avenues Analyst, Research, KPO, Banking, Brokerage Firms, Mutual Fund Houses, Private Banking, Wealth Management firms, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory
Banking, Mutual Fund Houses, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory
Examination Level 1 examination is of 2 Hour and Level 2 is 3 Hours MCQTotal Cost of Examination – Rs. 4,000/- (Compulsory Path.)Total Cost of Examination – Rs. 2,000/- (Experience Path.)
The Exam 1-4 are of 2 Hours each and Exam 5 is of 4 Hours MCQTotal Cost of Examination = Rs. 13,000/-
Total cost for Candidate
Compulsory Pathway – Rs. 19,000/-Experience Pathway – Rs. 12,000/-Corporate Pathway- Rs. 9551/-
Regular Pathway – Rs. 33,000/-Challenge Status Pathway – Rs. 30,000/-
For More Information:Website: www.aafmindia.co.in
Tel: 011-45120800
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