Certified Financial Planner (CFP) Salary
Job Description for Certified Financial Planner (CFP)
While many entities provide financial planning assistance to people who want a better handle on their financial situations and goals, a certified financial planner (CFP) can truly be considered a professional in the field. CFPs are only granted this title after passing a grueling certification process which ensures the individual's extensive knowledge of all aspects of the work; these include retirement planning and tax laws and regulations, as well as insurance and investment vehicles. Certified financial planners work with individuals, either under the auspices of a financial institution or in private practice, to help them manage money, income, and expenses.Read More...
Certified financial planners typically begin with clients by assessing all areas of income and debt from the past and foreseeable future. They also interview clients to discover potential problem areas, as well as the financial goals the individual may hold. These goals can include saving for retirement, college expenses for children, further investments, or simply attempting to work around problems like long-term debt.
CFPs work to present as many solutions and choices as possible to clients. These can include taking advantage of potential tax breaks, examining refinancing opportunities, or using different financial product packages. They also advise clients on recommended investment mixes regarding stocks, bonds, and other commodities, and may help anticipate spikes in debt or design financial shelters in case of job loss or other difficulties.
A bachelor's degree may be a minimum requirement for this position, though there are also specific requirements regarding a variety of topics in insurance, investment, and market work. CFPs must also pass a rigorous two-day examination before being certified; this certification is held in high regard by financial institutions, though some CFPs choose to work independently of such organizations. These planners typically work during regular business hours in an office environment, but some will take time for irregular hours and field work to visit with potential clients in their homes.
Certified Financial Planner (CFP) Tasks
- Document and revise financial plans for clients.
- Create agendas, spreadsheets, and meeting materials to discuss investments, savings, and asset allocation.
- Interview individuals or businesses to identify financial goals, concerns, and opportunities.
Certified Financial Planner (CFP) Job Listings
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Popular Employer Salaries for Certified Financial Planner (CFP)
Ameriprise Financial, Inc. does shell out the biggest paychecks — the median in that office is $77K — but the company pay scale is greatly mixed, meaning that workers on the low end may earn only $51K while workers on the upper end may rake in up to $391K.
Popular Skills for Certified Financial Planner (CFP)
Certified Financial Planners seem to require a number of specific skills. Most notably, skills in Strategic Planning, Insurance, Financial Advisor, and Investment Management are correlated to pay that is above average, with boosts between 6 percent and 17 percent. Those listing Client Interaction as a skill should be prepared for drastically lower pay. Microsoft Excel and Financial Modeling also typically command lower compensation. Those proficient in Financial Advisor are, more often than not, also skilled in Investment Management and Financial Analysis.
Pay by Experience Level for Certified Financial Planner (CFP)
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many Certified Financial Planners, more experience generally translates to higher pay. The average inexperienced worker earns $60K, and someone who has worked for five to 10 years can expect a bigger median salary of $78K. Between 10 and 20 years, pay surpasses six figures; at this stage, the average professional scores around $100K. Average wages for folks with more than 20 years of experience come out to around $149K.
Pay Difference by Location
For Certified Financial Planners, busy Boston offers a higher-than-average pay rate, 46 percent above the national average. Certified Financial Planners will also find cushy salaries in San Francisco (+33 percent), Charlotte (+17 percent), San Diego (+9 percent), and Phoenix (+8 percent). Falling short of the national average by 17 percent, the area with the worst salaries is Dallas. Employers also pay below the national average in Louisville (15 percent lower) and Houston (10 percent lower).