CFA Salary vs CFP Salary
This is a comparison of the salaries and other compensation earned by CFA charterholders, and CFP professionals. We will go over some data on compensation for both of these designations, and then discuss how I see the potential for future pay raises working for people with either of these marks.
The most straightforward part of this conversation is just to look at the median pay for these designations throughout different stages in each respective career. One of the best studies I have seen on this was from investment news in 2016. They look at financial advisors, but not partners of financial advising firms. The median CFP advisor in this group earned $142,750 in total compensation. (show text). Of this same group, the median CFA earned $177,740 in total compensation (show number). But this data set doesn’t tell the whole picture for CFA charter holders, since many of them are working in jobs other than financial advising.
The CFA institute puts out data every year to answer our question here, and I have another video going into the details on a lot of the data they produce. For this video, I’m just going to present the numbers that are most comparable to the ones I just mentioned for the CFP. The median total compensation for CFA charterholder in 2019 was about $193,000. So subtract a few % for inflation since the last numbers I mentioned were from 2016, and then ignore the top 1% of earners which are usually the partners like we did with the last numbers, and you still see what I would consider the typical CFA earning about 25% more than what I would consider to be the typical CFP professional at the early to middle period of their career.
If you have an idea of something you want me to cover in depth, please let me know because I take your requests seriously. Will be back with more CFA Exam tips in a couple of weeks so please submit more questions you would like to hear answered. Love you all!
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Пікірлер: 50
CFP sitting for CFA lvl 3. One of us, one of us
As of right now, I’m just looking forward to learning and helping my firm be successful. I would like to gain experience and knowledge. Maybe down the road, I might pursue something proprietary. See what happens.
And the next video will be a comparison of the time at work spent per weel by CFA charterholders, and CFP professionals
Someone below (Slava Kolesov) brought up an interesting point. Big salaries are nice but which person (CFP or CFA) is working the least hours for that big salary? Conversely, which person is spending their whole waking lives in the office and which person can have a life outside of the office? Do we live to work or do we work to live? As a corollary, which industry would have the best benefits? Seems like hospitals and the medical industry would provide the best medical coverage. Are there any benefits to other industries?
I became unemployed from working 70 to 80 hours a week at the hospital, while also having been poisoned and have not been working now for 20 years. I am 65 years old and can not use my medical training; my training in music does not pay anything. So I am thinking of the CFP certification. IS it a salaried position? How long does it take? Can I move to states like Florida to work? IS there a lot of job discrimination? I am white, male, single and 65 years old. In Alabama where I now live there is extreme discrimination with this profile.
Now this is an interesting video!
getting paid in stock is a good bonus. this is why many executives receive stock options as part of compensation package. their bonus incentive is aligned with the company doing well. getting paid in stocks/options is also very beneficial for tax reasons. 500k in salary would be immediately subject to 6 figures of income tax. however, getting paid in assets, you can defer the capital gains, you aren't slapped with a -40% on your salary...
@JamocaJackson
5 ай бұрын
This is actually untrue. Stock options are subject to FICA taxes when used as compensation
great content, Can cfp holders from one country can start practice in other nations? if yes the what is the process
Great video. Can you also make a similar content video for CFA vs CPA
@straighttalks-ajsrmek323
2 жыл бұрын
Sure thing!
Just received my CFP this year. On avg. Without my CFP I'm earning over 190k (last 3 years) now I do have over a decade in the industry, 6 years as a advisor. Now that I have my CFP I dont think it will necessarily add dollars to my bottom line but I do think it allows me to work with a more affluent client base and makes me much more marketable in the industry if I ever do want to explore other opportunities. Do you think I should now obtain a masters? I'm 41 and thinking if I do eventually want to move up as a regional manager/director level having a masters would definitely put me in a good spot. Now the masters focus is a more complicated decision. Why obtain a masters in Financial planning (seems redundant) maybe in leadership/management. Thoughts?
@straighttalks-ajsrmek323
2 жыл бұрын
I wouldn't get a masters unless you want to get into an upper level management role. Probably don't even need it for a regional manager role.
I wanna be a portfolio manager of a macro fund at some point. CFA would be a much better option than the CFP, right?
@straighttalks-ajsrmek323
3 жыл бұрын
Most likely, yes.
Which one which you prefer getting first if I wanted to obtain both in the least amount of time?
@straighttalks-ajsrmek323
3 жыл бұрын
CFA first so that you can later skip all of the CFP education requirements.
Just finished degree in economics and business management in Israel. They don't offer a CFP here, but they do offer CFA. Thinking about to start to study for that
@straighttalks-ajsrmek323
10 ай бұрын
If you want to get into asset management, then it might be the right idea!
Great video. I would like to know the comparative income in relation to years of experience. Also I would expect cfa charterholders to be more likely to have advanced degrees like an MBA. This may result in the differences in income, is that a valid assessment?
@straighttalks-ajsrmek323
3 жыл бұрын
Yes that could certainly be part of it!
Whats the future outlook of this job? Will there be more job growth? Or is this a dying industry? Talking about CFA and CFP
What about the CIMA designation?
lets make moneyyyyyy
What's the initial pay for someone who's fresh? By that I mean right after someone passes Level 3.
@straighttalks-ajsrmek323
3 жыл бұрын
It will depend very much on job experience and location. I would say anywhere from $60k-$120k.
I'm taking my last cpa exam, how difficult would the cfp exam be compared to the cpa?
@straighttalks-ajsrmek323
2 жыл бұрын
I believe the CFP is a bit easier than the CPA.
Is a masters degree in financial planning worth it? Or is the CFP with a certificate just as beneficial
@straighttalks-ajsrmek323
2 жыл бұрын
My opinion - the CFP would be better.
Howard Marks is also a Billionaire who holds the charter.
What is the pay for CFA level 2 and level 3 candidates
@straighttalks-ajsrmek323
3 жыл бұрын
I have a video about how much a CFA charter holder can make
How much salary would I expect if I do cfp and cfa as a fresher???
@straighttalks-ajsrmek323
3 жыл бұрын
What does fresher mean?
@baluchandra8374
3 жыл бұрын
@@straighttalks-ajsrmek323 I mean if I complete cfp and cfa three levels on my first try how much salary would I expect???
@straighttalks-ajsrmek323
3 жыл бұрын
@@baluchandra8374 There could be a wide range. But if you had both of these designations, early in your career I would guess $80k-$140k.
@makaranddesai6139
2 жыл бұрын
@@straighttalks-ajsrmek323 heyy I'm from india & If I'm doing ACCA(UK) & CFA is this a good combination for me to get a job in USA
Great video! What’s your long term career goal holding both CFA and CFP?
@straighttalks-ajsrmek323
3 жыл бұрын
Work as a partnered advisor at my firm and also run the investment committee.
Sir can u plz make a video on phd in finance?
@chiragthakur3533
3 жыл бұрын
And comparision betweem phd in finance and cfa..
@straighttalks-ajsrmek323
3 жыл бұрын
@@chiragthakur3533 Maybe in the future. I don't know too much about PhD programs myself.
How old are you ?
@straighttalks-ajsrmek323
2 жыл бұрын
27
CFA long term goal is to be a portfolio manger for a mutual fund lol and make millions
CFP stands for cant fucking produce
@straighttalks-ajsrmek323
2 жыл бұрын
Lol what? Why do you say that!
@ThePitchingPage
2 жыл бұрын
@@straighttalks-ajsrmek323 Lol I worked a at firm and my boss was around 62 and that was what he said it stood for. inside joke
@ThePitchingPage
2 жыл бұрын
@@straighttalks-ajsrmek323 he was just saying you can have all the certifications in the world but if people don't connect with you it doesn't matter. They will take there business somewhere else.