What Is a Chartered Financial Consultant (ChFC)?

There are many certifications that a financial advisor can earn, like a certified public accountant (CPA), Certified Financial Planner™ (CFP®) and more. The chartered financial consultant, or ChFC, certification isn’t quite as common as some of the others, but it holds plenty of value for potential clients. For instance, a ChFC can help someone with tax planning, retirement planning, wealth management and more.

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What Is a Chartered Financial Consultant (ChFC)?

Chartered financial consultant (ChFC) is a certification often received by financial advisors and planners that are offered by the American College of Financial Services. The school has offered this credential since 1982 and is the only institution that does so.

The ChFC designation is awarded to financial advisors who have completed a rigorous program of study, focusing on a wide range of financial topics such as insurance, income taxation, retirement planning, and estate planning. This comprehensive education equips ChFCs with the expertise needed to provide sound financial advice tailored to the unique needs of their clients. Unlike some other financial certifications, the ChFC program emphasizes practical, real-world applications, ensuring that advisors are well-prepared to address the diverse challenges faced by their clients.

In many non-official ways, ChFC is an advanced form of the CFP® credential. Both types of professionals offer full-service financial advice on matters ranging from investments to retirement planning to wealth management. However, the ChFC certification process is considerably more difficult than its CFP® counterpart, along with being quite a bit pricier.

Qualifications Needed to Become a ChFC

Despite the knowledge overlap between the ChFC and CFP® designations, they are not technically related. A professional does not need to be a Certified Financial Planner™ to receive the chartered financial consultant title.

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

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. These cover subjects such as investment and retirement planning, insurance planning and the financial planning process.
Pass eight proctored exams, one after each course.
Maintain at least 30 continued education credits every two years.

Each course costs $955, though some specialized courses can be pricier. The American College offers a $2,595 starter package that includes the first three courses. Meanwhile, the $6,395 full eight-course designation package.

What Services Does a ChFC Offer?

An advisor discusses with a client what a ChFC can do.

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. Here are some of the more popular services offered:

Wealth Management: A ChFC in this field 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 and figure out how to best save, spend and budget for the future. A ChFC will work with clients to help them not only meet and their goals but 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 strategy that maximizes a client’s position when it comes time to pay income, property, capital gains and any applicable taxes they may encounter.

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) planning to hand down an estate.

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 create a budget and 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 strategy for your taxes, but they can’t prepare them for you. To understand your specific tax position, you’ll likely want to see a CPA. You’ll have to do the same to have your taxes prepared and filed.

Execute Investment Trades: There is no regulatory prerequisite for being a ChFC, so not all with be able to help with this. However, some ChFCs may have the ability to trade investments in your name. While your ChFC can help you to prepare an investment strategy, actually investing the money for you isn’t a given.

Provide Legal Advice: Often there’s a substantial overlap between providing legal advice and financial consultation, but that doesn’t mean you should confuse the two. A ChFC can create a strategy for you on investment and asset management, but they cannot advise you when the issue touches on matters of law. Only a lawyer can do that. This can be particularly relevant in estate and tax planning.

Now, this does not mean that no chartered financial consultant can ever provide these three services above. Your advisor may also hold a CPA, be registered with a brokerage or operate as part of a law firm. A ChFC can have multiple credentials, or at least access to, those fields of expertise. 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, start 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, consider reading reviews and testimonials from past clients to gauge their satisfaction and the advisor’s effectiveness.

The American College of Financial Services has its own online database that allows you to find professionals with the certifications it offers. This, of course, includes ChFCs. By browsing advisors in the college’s online network, you can ensure you’re finding a legitimate ChFC.

On the flip side, you can also personally search the web for a ChFC that has the qualities you’re looking for. 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 real.

Effective communication is essential in any advisor-client relationship. When meeting with a potential ChFC, assess their ability to explain complex financial concepts in a way that is easy to understand. 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.

Bottom Line

The ChFC certification has a more rigorous course of study than that demanded by 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 to have practiced for three years before earning this certificate, it is quite possible to do so early on, and it is 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.