Comparision Between CFP and CWM Certification. Difference between Financial Planning and Wealth Management

1. DIFFERENCE BETWEEN
FINANCIAL PLANNING
AND WEALTH
MANAGEMENT
Deepak Jain, CFP, CWM

2. DIFFERENCE
BETWEEN
CFP AND CWM
CERTIFICATIONS
Deepak Jain, CFP, CWM

3. CFPCM and CW ®
M
Certified Financial Planner
Chartered W
ealth Manager

4. Difference Between Financial Planning and
W
ealth Management
Financial Planning


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.
W
ealth 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.

5. Difference Between Financial Planning and
W
ealth Management
Financial Planning


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
W
ealth Management



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.

6. Difference Between Financial Planning and
W
ealth Management
Financial Planning

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.
W
ealth Management


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

7. *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

8. Learning Outcomes of
Certifications
CW
M® 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
Consider potential opportunities &
constraints & assess Information to

9. Universe of Client Handling
Based on the Size of Clients’ Portfolio
HNI = USD 1 Million
UHNI = USD 5

10. Fast Facts

11. Basic Certification Differences
Parameters
CW
M® 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 Pathway
No Experience Requirement for Certification
3 Years for Certification

12. Basic Certification Differences
Parameters
Pathway to Register
CW
M® certification
CFPCM certification
Compulsory Pathway - Eligibility
Passed minimum 12th Standard
Regular Pathway
Passed minimum 10th Standard
Experience Pathway - Eligibility
Passed Graduation
3 years of minimum work experience.
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
MCQ
Total 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
MCQ
Total 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/-

13. For More Information:
Website: www.aafmindia.co.in
Tel:
011-45120800