This is a test. This is only a test.

Until failing the final exam for the CFP (Certified Financial Planner) exam, I had only failed three tests in my life. With twelve years of primary and secondary school,and seven years of college under my belt, the only tests I had failed were one  in the sixth grade and two of the CFP exams. I took those again and passed them the second time. In the sixth grade Mr. DiMichele warned us that if we forgot to sign our names to our paper we would get an automatic 50. The next test  I got a 50 instead of the 90 I earned.  I thought my academic career was over.  I had destroyed my "permanent record."  There was no damage to my record, but I made a B and I never forgot to put my name on my paper again.

Since failing the final and leaving the financial planning industry in 2001, I have mysteriously remained on the mailing list of the CPF Board of Standards. It is not unusual for me to receive correspondence every six months or so. But for whatever reason for about the last month I have received at least one or two emails a week from them. It would be easy enough to be removed from the list, but I don't mind deleting the email.  Besides, it's good to be reminded often that what happened really doesn't matter much in the scheme of things.

For two years my manager at my firm warned us that the CFP Board was about to add a final exam for attaining the CPF designation.  At the time one could pass six exams and obtain the designation. But I  wasn't ready to begin and I figured if I could pass the six exams, then I could pass a final over the same material.  I was wrong. Over the four years that I eventually passed the six "education exams" I studied for hundreds of hours. Until I started that process, the most difficult exam I had ever passed was the Series 7, the stockbroker's exam.  It was composed of two three-hour exams on the same Saturday. Each of the six exams for the CFP was as hard or harder than the Series 7. The final was like two or three Series 7 exams.

Over a five year period from 1996 to 2001 I had spent over 1000 hours studying and several thousand dollar pursuing my dream of becoming a CPF.  I thought the designation would give me more credibility and a great deal of respect, especially from my associates. An irony of the designation is that the public is told that a CFP is "more ethical. You can trust him with your money."  The truth is a CFP was willing to study and pass a bunch of difficult exams.  I really don't see that that makes him or her any more ethical than the next financial planner.  Sour grapes?

Leading up to the final exam, I spent two weeks in Atlanta in a live review.  We were in class all day for ten days in a grueling class setting to prepare for the exam. We spent several days just on the "case studies." With a case study you're given a family that owns a business. With only our calculator we had to complete complicated cash flow sheets, manually compute hypothetical education funds for multiple children, retirement amounts and company benefits. This included hypothetical hospital stays to compute deductibles, co-pays and total out of pocket expenses. Software was available to calculate all of that, but a CFP must be able to figure all of that with only a financial calculator. And since the exam was timed, we had to be able to do it in a hurry.

Then the time came for the exam. The CFP final was a ten-hour exam. There was a four-hour exam on Friday and two three-hour exams on Saturday. The two case studies were in the last segment of the exam. As much as I had prepared, as much time, money  and energy I had invested in the process, as many trips that I had made all over the states of Georgia and Tennessee taking classes and practice exams ,  I knew that I had failed the exam.  After  several anxious weeks I received a letter from the CFP Board of Standards. I opened it and read "Fail."  My wife said that as I read it I stopped breathing.

Many people retake the exam  and pass it the second time.  I was done. A few weeks later I received a large certificate suitable for framing with CFP Board of Standards and something about "Education Requirements."  So I got it framed and hung it on my wall.  And why not? I had earned it. But it was just confusing.  My clients would congratulate me on my achievement, but my associates knew better. And  I knew better.  I not only threw away the certificate, but after twelve years in the financial services industry, a few months later I walked away.

Funny thing.  They call them "tests", but are they?  Theoretically a test is a simulation; it's not the real thing.  If you test equipment the test is not a "real life" situation. If it fails, there's no harm done. It was just a test.  If you test the integrity of a product, you have the opportunity to make it right. But when you take a big exam it feels like that at least to some extent your life is on the line. There is nothing about it that feels like a "test."  It feels final. But isn't the point of a test to learn something?  I don't remember that many details from those five years and seven exhausting exams, but I did learn. I don't have the designation, but like that certificate said, I have the education. So now I guess that I'm a HBFP (Has Been Financial Planner).  But isn't it better to be a "has been" than a "never was"?

 From time to time people still ask for my financial advice.  After several disclaimers,  I'm glad to offer an educated opinion. There are proven techniques to financial stability that change very little over time. These techniques have nothing to do with which stocks you own or how "the market" performs on any given day. Or month. Or year. All of these techniques involve routine investments and time.

Do you remember that test of the Emergency Broadcast System on your television? After an interrupting loud test signal the voice said "This is a test. This is only a test. Had it been a real emergency..." As it turns out the entire five year process toward the Certified Financial Planning designation was only a test. It was not a real emergency. Our approaching retirement, on the other hand, while not an emergency,  is an actual financial event for my wife and me.  These coming years are not a test, they're the real deal. But our competent advisor, who has some very good software, says that we're going to be okay.