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What Do Certified Financial Planners Earn?

By

澳洲幸运5开奖号码历史查询:Barbara A. Friedberg

Updated November 12, 2024

Reviewed by

Doretha Clemon

Fact checked by

Amanda Jackson

Individuals with the Certified Financial Planner (CFP) designation enjoy an above-average salary r♛ange as well as promising current and future job availability. The salary range for a certified financial planner should be viewed in a broad context including experience, length of time in the field, and geographic location. As with many professional designations, the average income of those who have earned the CFP will vary depending on these factors.

Key Takeaways

The Certified Financial Planner (CFP) is a financial industry credential earned after passing a series of rigorous exams.
Those with a CFP credential are knowledgeable in topics such as retirement planning, portfolio construction, investments, and insurance.
CFP professionals can expect to enjoy superior incomes compared to those without such a designation.
The national salaries of CFPs are largely impacted by the professionals' levels of experience.

Requirements for CFP Designation

It can be helpful to explore the minimum credentials required for this profession. This designation is governed by the CFP Board. The CFP designation is achieved through an individual's education, work experience, and examination scores. A minimum of a bachelor’s degree, specialized financial planning coursework, and three years' experience are prerequisites to becoming a CFP.

Important

The CFP candidate must takeജ the CFP certification examination after meeting the minimum criteria. The exam measures the applicant’s proficiency in financial planning scenarios and professional ethics.

Experience Affects CFP Salary

The national salaries of CFPs are largely impacted by an individual's level of experience. A CFP with five to 10 years of experience averages approximately $150,000 per year, according to the CFP Board. At the other end of the spectrum, a late-career CFP with more than 20 years of experience garners an average income of $325,000.

The CFP is one of the fastest growing and highly compensated fields with employment opportunities expected to grow by 17% annually from 2023 to 2033. The primary driver of growth for CFP employment is the aging population as large numbers of baby boomers will begin reaching the traditional retirement age of 65 beginning in 2024. This will likely create a need for additional planning advice from financial adv🍸isors.

The Bureau of Labor Statistics reports that the field can expect to see 27,000 new workers during this 2023 to 2033 time period.

How Long Does It Take to Earn the CFP Designation?

Successful candidates can expect to earn certification in 18 to 4 months, according to the CFP Board.

What Is the Pass Rate on the CFP Exam?

Statistics from the CFP Board showed the pass rate on the CFP exam to be 65% of test-takers in July 2024.

What Career Paths Do CFP Professionals Take?

Financial professionals can go into the fields of 澳洲幸运5开奖号码历史查询:financial planning, financial advising, brokerage, i🏅nsurance, estate planning, and money management when they have the CFP credential.

The Bottom Line

When combining above-average salaries with high levels of job satisfaction and growing job availab🐻ility, the certified financial planner is a standout career path for a financially-minded individual. The provides in-depth coverage of the certified financial planner de♍signation and instructions regarding entry into the profession.

Article Sources

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