CPWA vs. CFP®: Designations for Financial Advisors

When comparing the CPWA vs. CFP® designations for financial advisors, investors may notice that both credentials signal professional training but focus on different areas of financial advice. The certified private wealth advisor (CPWA) designation focuses on advanced wealth strategies for high-net-worth clients, while the Certified Financial Planner™ credential centers on comprehensive financial planning across areas like retirement, taxes and insurance. Understanding how these certifications differ can help clarify the type of training and services an advisor may offer.

Consider speaking with a financial advisor to discuss your financial situation and available planning options. Connect with an advisor for free.

What Is a CPWA?

The CPWA designation is a professional credential for financial advisors who work with affluent and high-net-worth clients. It is administered by the Investments & Wealth Institute, a professional association focused on advanced wealth management education and standards.

The CPWA designation reflects training in complex financial planning topics that often arise when managing substantial wealth. Advisors who hold the credential study areas such as tax-efficient investing, estate and legacy planning, wealth transfer strategies, executive compensation and behavioral finance.

While many financial planning credentials cover broad planning topics, the CPWA designation is designed to address the specialized financial issues that can arise when advising clients with significant assets and complex financial lives.

CPWA Requirements

Someone pursuing a CPWA designation would need to meet these five requirements:

• Hold a bachelor’s degree from an accredited university or college or hold one of the following licenses or designations: CIMA, RMA, CFA, CFP®, ChFC or CPA
• Have five years of experience in the financial field
• Have an acceptable record with the Investments & Wealth Institute’s Admissions Committee
• Take a Private Wealth Essentials course from the Investments & Wealth Institute

Once certified, CPWA professionals must maintain the credential by completing 40 hours of continuing education every two years, including ethics coursework, and renewing their certification with the Investments & Wealth Institute.

CPWA Costs

If you want to become a CPWA, be prepared to cover a relatively steep cost of between $7,390 and $7,690, according to the Investments & Wealth Institute. ¹ The certification fee includes a background check, application fees, tuition, one exam attempt, and course materials. It also includes room and board for an executive education experience. But if you need to retake the exam, you’ll be required to pay $225.

What Is a CFP®?

The Certified Financial Planner™ designation is a professional credential for financial advisors who provide comprehensive financial planning services. It is awarded and administered by the CFP Board in the United States. Advisors who hold the CFP® certification are trained to help clients address multiple aspects of personal finance, including investments, retirement planning, insurance, taxes and estate planning.

The credential indicates that an advisor has completed formal training in financial planning concepts and follows professional standards established by the CFP Board. CFP® professionals also agree to follow a fiduciary standard when providing financial advice, meaning they are expected to place their clients’ interests ahead of their own when delivering financial planning services.

CFP® Requirements

Anyone pursuing a CFP® designation will need to meet these five requirements:

• Pass a background check
• Hold a bachelor’s degree from an accredited university or college
• Complete CFP® coursework
• Pass the CFP® exam
• Have 6,000 hours of professional experience related to financial planning or 4,000 hours of apprenticeship experience

The process of becoming a CFP® is rather extensive. With such requirements, clients can feel comfortable knowing their CFP® has passed all of these hurdles.

After earning the CFP® designation, a credential holder must complete continuing education requirements to renew their certification every two years. According to the CFP Board, this education includes 28 hours of financial planning content and two hours of ethics education content.

However, starting in 2027, the CE requirement will increase to 40 hours per two-year cycle. CFP® professionals will need to complete 38 hours of general CE and two hours of ethics CE. ²

CFP® Costs

Earning CFP® certification typically costs between approximately $5,000 and $10,000 for candidates following the standard education path, based on pricing from major program providers. Those eligible for the accelerated path pay significantly less.

The CFP® exam itself costs $825 for early registration, $925 for standard registration or $1,025 for late registration. After passing, candidates pay a $250 application fee plus a prorated portion of the annual certification fee. ³

The annual certification fee increased to $575 effective Oct. 1, 2025. ⁴ CFP® professionals must also complete continuing education every two years, adding to the cost of maintaining the credential.

CPWA vs. CFP: What’s the Difference?

While both the CFP® and CPWA (Certified Private Wealth Advisor) are respected credentials for financial advisors, they serve different purposes and client segments.

• Target client base: The CFP® certification covers financial planning strategies that apply to a wide range of clients, while CPWA certification is specialized for high-net-worth clients. The CPWA is designed specifically for advisors working with high-net-worth and ultra-high-net-worth clients, typically those with $5 million or more in assets.
• Subject matter emphasis: CFP® training covers core financial planning topics and the financial planning process. CPWA coursework explores advanced topics such as tax-efficient investing, estate strategies, executive compensation and wealth transfer planning.
• Experience requirements: CFP® candidates need 6,000 hours of financial planning experience or 4,000 apprenticeship hours. CPWA candidates must document at least five years of verified work experience in financial services before certification.
• Exam structure: The CPWA exam consists of 135 multiple-choice questions, compared to the CFP® exam’s 170 questions covering seven knowledge domains.
• Cost: Both credentials can cost several thousand dollars. The total cost of becoming a CFP® may range from $5,000 to $10,000, depending on the route one takes. The CPWA credential costs between $7,390 and $7,690.
• Continuing education: Both certifications require 40 hours of continuing education every two years to maintain the credential.

Bottom Line

The CPWA and CFP® designations for financial advisors reflect two different approaches to professional training in the financial advice industry. The CFP® credential focuses on broad financial planning topics that apply to a wide range of clients, while the CPWA designation concentrates on advanced planning strategies for high-net-worth households. Both certifications involve formal education, examinations and continuing education requirements. Looking at an advisor’s credentials, experience and areas of specialization can offer insight into the type of planning services they may provide.

Tips for Finding a Financial Advisor

• A financial advisor could help you build an investment portfolio to support your financial future. Finding one 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.
• CPWA and CFP® are just two out of many certifications that a financial advisor can hold. Here are 10 common financial certifications.

Next Steps

Do you want to learn more about financial advisors? Check out these articles:

• How to Find a Certified Financial Planner™ (CFP®)
• What Is a Certified Financial Planner (CFP)?
• What Is a Certified Private Wealth Advisor (CPWA)?
• AAMS vs. CFP®
• CPFA vs. CFP®
• CFP® vs. CMA

Photo credit: ©iStock.com/gilaxia, ©iStock.com/fizkes, ©iStock.com/shironosov