--- title: Chartered Financial Consultant (ChFC) | Definition and Requirements description: Learn about what ChFCs are and what kinds of jobs they hold. Also, discover the requirements, pros, and cons involved if you want to become one. image: https://www.carboncollectiveinvesting.com/hubfs/Chartered_Financial_Consultant_(ChFC)_-_FI.png --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo.53b28bee.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** Chartered Financial Consultant (ChFC) # Chartered Financial Consultant (ChFC) ![](https://www.carboncollectiveinvesting.com/hubfs/Brooke%20Tomasetti.png) Written by Brooke Tomasetti | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents ## **What Is a ChFC?** Chartered Financial Consultants are professionals who provide financial planning and consulting services to individuals and businesses. They work with clients to assess their financial needs and develop customized plans to help them achieve their goals. The American College awards Chartered Financial Consultant certifications when students complete seven compulsory and two optional courses. Those who receive the accreditation are seen to be well-versed in financial problems and capable of giving appropriate advice. Once they have earned the designation, they must maintain their knowledge and skills by completing continuing education requirements. ## **Requirements** To be eligible for the designation, candidates must have three years of full-time business experience in the financial services industry within the previous five years and finish nine college-level courses, equivalent to 27 semester credit hours. - Process and environment of financial planning - Insurance preparation - Benefits planning for employees - Taxation planning - Planning for estate, gift, and transfer taxes - Planning for asset protection - Retirement preparation - Planning an estate - Comprehensive financial planning and consulting applications   Exams are closed-book and proctored for each course, much like any other business course provided by an approved college. The exam should follow the criteria of any reputable university's business and finance courses. To keep the [certification](https://www.finra.org/investors/professional-designations/chfc), holders must complete 30 hours of continuing education every two years and follow The American College Code of Ethics and Procedures. Those who have acquired the ChFC designation have also completed the educational requirements to sit for the CFP (Certified Financial Planner) Board test. ![Required_ChFC_Courses](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Required_ChFC_Courses.png?width=1920&height=1080&name=Required_ChFC_Courses.png) ## **How They Work** Chartered Financial Consultants work with clients to assess their financial needs and develop customized plans to help them achieve their goals. They provide financial planning advice on areas such as income tax, risk management, estate planning, and investments. Moreover, they help clients save for retirement, especially early retirement, and manage their [budgets](https://www.carboncollectiveinvesting.com/sustainable-investing/budget) or businesses to evaluate their investment strategy. ChFCs take into account a client's entire financial picture. They then develop a comprehensive financial plan with recommendations for best meeting the client's goals. They may need to be updated on all international, national, and local financial regulations relating to the customers they work with and their financial activities. ## **ChFCs vs CFP** Certified financial planners (CFPs) and chartered financial consultants (ChFCs) aren't all that dissimilar in practice. The Chartered Financial Consultant designation is granted by The American College, while the Certified Financial Planner designation is granted by the Certified Financial Planner Board of Standards. The distinction is more in what is necessary to obtain each certification. The ChFC title necessitates extra education. However, both CFPs and ChFCs cover the same fundamental themes. A CFP must complete seven courses, whereas a ChFC must complete nine courses, two of which are application-based. A CFP must take a complete board exam after finishing all courses, whereas a ChFC takes a test after each course. Both must, however, have specific degrees of professional expertise and are subject to a fiduciary standard, which means they are required by law to consider their customers' best financial interests when making investment decisions. Both credentials need 30 hours of continuing education every two years, including an ethics course. ## **Kinds of Jobs ChFC Certificants Hold** ChFCs work in several professions in the financial services sector and other disciplines that are indirectly connected, such as accounting and law. ChFCs work in various settings, including banks, insurance companies, and accounting or investment firms. They may work as financial planners, financial advisers, wealth managers, and/or investment consultants. Some ChFCs become full-time financial planners, while others use their credentials to supplement other financial services they provide, such as selling insurance or investing. Individuals who have completed the ChFC courses may register with the Financial Industry Regulatory Authority as investment adviser representatives without taking the Series 65 exam. ## **Advantages and Disadvantages** There are several advantages and disadvantages to becoming a ChFC. The advantages include: - The credential is well respected in the financial industry. - Credential holders must adhere to a strict code of ethics, ensuring they always put their client's interests first. - The credential gives holders the ability to provide comprehensive financial planning advice. - Ensures that the consultants possess the knowledge and expertise you're seeking from a [financial advisor](https://www.carboncollectiveinvesting.com/sustainable-investing/8-different-titles-of-financial-advisors-their-specialties). - ChFCs must complete continuing education requirements every two years to maintain their credential, ensuring they keep up to date with the latest changes in the financial industry. - The credential can lead to other job opportunities, such as working as an investment adviser representative.   The disadvantages include: - The credential is not as well-known as some other financial industry credentials. - The courses required to obtain the credential can be expensive. - The credential may not be necessary if an individual only wants to provide limited financial advice.   ![Advantages_and_Disadvantages_of__ChFC](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Advantages_and_Disadvantages_of__ChFC.png?width=1643&height=1080&name=Advantages_and_Disadvantages_of__ChFC.png) ## **Conclusion** Working with a Chartered Financial Consultant may be the best option if you seek comprehensive financial planning advice from a professional. ChFCs must adhere to a strict code of ethics and complete continuing education requirements every two years to maintain their credential. The courses required to obtain the credential can be expensive, but the credential may lead to other job opportunities. While the credential is not as well-known as some other financial industry credentials, it is well respected in the industry. ## **FAQs** ### 1. What is a ChFC? Chartered Financial Consultants are professionals who provide financial planning advice to individuals and businesses. They must complete specific coursework and pass an exam to earn their credential. ### 2. How do ChFCs help their clients? ChFCs help their clients by providing comprehensive financial planning advice. They take into account a client's entire financial picture when making recommendations. ### 3. What are the requirements to become a ChFC? To become a ChFC, candidates must have three years of full-time business experience in the financial services industry within the previous five years and finish nine college-level courses, equivalent to 27 semester credit hours. ### 4. What are the benefits of working with a ChFC? The main benefit of working with a ChFC is that you can be assured they have the knowledge and expertise to provide comprehensive financial planning advice. ### 5. Are there any drawbacks to working with a ChFC? One potential drawback to working with a ChFC is that the credential is not as well-known as some other financial industry credentials. Additionally, the courses required to obtain the credential can be expensive. ### Related Topics - [Sustainable 401(k) Plan](https://www.carboncollective.co/401k) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing/) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Retirement Glossary](https://www.carboncollective.co/sustainable-investing/retirement-planning-glossary) - [Best Retirement Plans](https://www.carboncollective.co/sustainable-investing/the-10-best-retirement-plans) - [Wealth Manager Vs Financial Advisor](https://www.carboncollective.co/sustainable-investing/wealth-manager-vs.-financial-advisor) ![Attend Our Next Webinar](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-webinar.12af7b6e.svg) ### Attend Our Next Webinar Join our next Sustainable Investing 101 webinar, get our favorite DIY options, and walk through how we build our portfolios. 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