ChFC^®: Paving a Path to Success

Imagine a hypothetical scenario. A young person begins their professional career in one industry, however, after a few short years in the field, this person decides to shift roles. This person instead finds a role in financial services.

After finding some success in this new role, the individual decides this is a career worth pursuing and wants to support their goal by obtaining a professional designation. Unfortunately, there’s one problem — this person does not have a college degree. This puts this individual into a surprisingly large group. Though a bachelor’s degree may not seem like an exceedingly high mark to obtain, according to the U.S. Census Bureau, 62.3% of Americans (or roughly five out of every eight Americans) do not have one.¹

Though not having a college degree does not restrict an individual from having a successful career, it does mean they cannot obtain what many view as the gold standard for a financial services mark, the Certified Financial Planner® (CFP®). However, there are still options available to them, namely the Chartered Financial Consultant® (ChFC®).

What is the ChFC^®?

The ChFC®, similar to the CFP®, demonstrates a familiarity with several core competencies involved in the field of financial services. Those who complete the ChFC® program become versed in the essentials of financial planning, including:

• Investments and insurance
• Taxation
• Retirement and estate planning
• Special needs planning
• Small business planning

In many ways, the ChFC® fills the same function to the CFP®, differing in a few key areas such as the focus on behavioral finance. However, the fundamental differences between the two are the prerequisites. The ChFC® only requires a high school diploma to obtain, whereas a CFP® requires a college degree. This key difference makes the ChFC® the preferable option for financial services professionals who may have taken unconventional career paths to arrive where they are today.

How Can the ChFC^® Help an Advisor Get Ahead?

The main purpose for designations like the CFP® and ChFC® is the credibility, competency, and strong knowledge bases they offer to financial professionals that may be starting out their careers in the financial services industry. These designations serve as indicators of knowledge and trustworthiness and can be the difference in securing clients for some advisors.

FUSE Research Network found data supporting this trend in the 2024 Designation Outcomes Study. The study highlights how designations can help advisors to grow and thrive in their chosen field.

When looking at the data included in the 2024 Designation Outcomes Study, one can find that the ChFC® provides a significant career boost to the advisors who obtain it. According to the study, based on self-reported growth over the past three years compared to financial professionals with no designations, ChFC® designees demonstrate:

• 30% higher growth in production
• 32% higher growth in earnings
• 49% higher growth in number of clients
• 75% higher growth in client retention²

These numbers indicate positive trends for those who want to obtain a ChFC®. The growth in key statistics suggest that holders of the ChFC® designation can achieve significant levels of career success, even without the need for a college degree.

Trends De-Emphasizing College

Another trend emerging in the financial services industry is skill-based hiring. Skill-based hiring de-emphasizes the formal credentials such as academic degrees and experience, and instead evaluates individuals based off of assessments that measure abilities that are crucial to the role.

Skill-based hiring is particularly popular in financial services, as 87% of finance employers have adopted some form of skill-based hiring in their recruitment process.³

This level of implementation across the industry suggests that financial services as a whole may be willing to do away with the common notion that individuals seeking a professional career need to start with a college degree and could instead be shifting their focus towards fluency in core competencies.

Due to this shift and the flexibility it offers, the ChFC® may be more desirable than any point in its history, as it aligns with where the industry is headed as it looks to focus on capabilities rather than credentials. The ChFC® also offers financial professionals a clear path forward when approaching a second, more specialized designation. The RICP® program requires only two additional classes for ChFC® designees, allowing financial professionals to earn a specialized education that helps them grow in their chosen field of expertise. For many, the shift from credential-based hiring to skills-based hiring will be a welcome one.

More From The College

• Explore the ChFC®
• Read the 2024 Designation Outcomes Study
• Browse Designations