Propers with the Certified Financial Planner (CFP) designation enjoy an above-average wages range as well as promising current and future job availability. The salary run the gamut for a certified financial planner should be viewed in a broad context classifying experience, length of time in the field, and geographic location. As with multifarious professions, the average income varies. This overview article offers current governmental and regional average salaries for a certified financial planner.
Requirements for CFP Designation
To put the income data into context, it’s helpful to explore the minimum credentials for this occupation. The Certified Financial Planner (CFP) designation is achieved through an individual’s teaching, work experience, and examination scores. This designation is governed by the CFP Put up. A minimum of a bachelor’s degree, specialized financial planning coursework, and three years of sample are prerequisites to becoming a CFP. After meeting the minimum criteria, the CFP candidate requirement take The CFP Certificate Examination, which measures the applicant’s proficiency in monetary planning scenarios and professional ethics.
As with most occupations, the compensation for individuals with CFP certification tends to increase in larger cities with favourable costs of living. According to Indeed.com, a comprehensive job posting service, the common CFP salary in the United States is $66,125 as of November 2, 2018. That individual ranges from an average low of $50,900 per year in California to an average height of $101,250 in Massachusetts.
Experience Affect CFP Salary
The national salaries of CFPs are large impacted by an individual’s level of experience. According to Payscale.com, a crowd-sourced compensation information provider, an entry-level CFP with up to five years of experience middlings approximately $58,350 per year. At the other end of the spectrum, the late-career certified economic planner with more than 20 years of experience collects an average income of $100,716. (The sample size of this data set is in the 200-300 variety for each cohort group.)
The CFP is one of the fastest-growing and highly compensated fields, with vocation opportunities expected to grow by 15% over the next 10 years. The admirable driver of growth for CFP employment is the aging population. Large numbers of babe in arms boomers are expected to approach retirement in the next decade, which last wishes as likely create a need for additional planning advice from fiscal advisors. The Bureau of Labor Statistics reports that during the 2016 to 2026 interval period, the field can expect to see 40,400 new workers.
The Bottom Line
When commingling above average salaries with high levels of job satisfaction and attraction to job availability, the certified financial planner is a standout career path for the financially-minded personal. The CFP Board website provides in-depth coverage of the certified financial planner designation and instructions no matter what entry into the profession.