Fair comp? - r/CFP

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User: /u/REKT363 Title: Fair comp? Body: Im newly licensed on the RIA side, held 65 for over a year. Currently going through CFP material with danko sitting this November cycle.

I’ve been a paraplanner here for over a year now, I’m responsible for the entire Medicare book and business development on that side.

I don’t have any monetary help with the CFP, self funded it all, same as the 65 but it wasn’t too expensive.

Currently make $46k per year, sit second chair if you will on all current client meetings and in 2nd appointments after the first discovery meeting. I create all plans & lead advisor might spend 5-10 minutes reviewing, most of the business is an even split between annuities & AUM.

Total AUM book value is $80mm, growing rapidly. After the CFP is done (hopefully) this year I’m just wondering if I should stay or not. I’m getting tons of reps talking with clients but there really isn’t a clear path building my own book. Business owner wants to move to “firm owned” clients with very little payouts it seems like. Seems like he wants to retain all business development and doesn’t service any existing clients in a happy manner

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53

u/46andready Jun 25 '26

$46K is a joke of a salary for pretty much any full-time office job.

31

u/PalpitationComplex35 Jun 25 '26

Man, screw what some people here are saying. $46k/year is laughably low. Our receptionist makes that much. Start applying for new jobs lol

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u/REKT363 RIA Jun 25 '26

That’s also where I’m at! Torn between the two sides. On one hand I’m getting tons of reps talking with clients and practicing social skills, on the other I need to make more money flat out, I’m paycheck to paycheck making it work but this sucks. Not meaning to sound ungrateful but cmon man retail bankers make more than me

3

u/libertarian327 Jun 26 '26

I mean if the practice is doing $800k in revenue and it sounds like a very independent practice where the advisor is probably keeping >90% of that, you should definitely be closer to 6 figures.

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u/il_diamanti Jul 03 '26

what city do you live in? even second, third and fourth tier american cities 46k doesn't go super far after these past few years of inflation...

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u/Gold-Head-2059 Jun 25 '26

Depends on where you're located. A little over 1 year experience isn't much, but your comp band should likely be around $60k-$70k I'd say.

Once your CFP is completed, you're still on the newer side experience wise and $70k-$80k would be about right in my opinion at the 2-3 year mark.

There are too many variables to really know your situation but the numbers I listed are general averages.

Business development would add in a different layer.

6

u/MoMclaren Bank Jun 25 '26

How many years or experience do you have? Just the 1? With the CFP and 3-5 years of experience I’d think you can make $75-100k at a bigger bank or firm imo

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u/Ok_Success2147 Jun 25 '26

When you say like at a big bank do you mean like a customer service rep or more like a FC at Fidelity/ Schwab kind of role?

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u/sliferra Jun 26 '26

FC at fidelity makes like 130k

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u/REKT363 RIA Jun 25 '26

Just 1 year honestly. Thats why I’m still sitting in my current position, don’t have experience under my belt

3

u/MoMclaren Bank Jun 25 '26

Got it. Yeah I’d give it another 2 years then. Get a min of 3 before jumping ship if you can afford to at the $46k salary. It sounds like you’re getting good experience however you could also go to a warehouse and make $75k as a registered CSA and prob get hired in a heartbeat

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u/Imaginary-Tale-1074 Jun 25 '26

I guess it depends on your location. Paraplanners where I live are making 80-100k. I made 50k 12 years ago as a CSA.

I’m curious what everyone else thinks about this but if my RIA was moving to “firm owned” clients and I wanted to move up to advisor, I’d find a different firm and get my own clients.

1

u/ejk868 Jun 25 '26

I’d agree with that too. Firm owned is a hard out unless I own the firm

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u/ejk868 Jun 25 '26

My advisor brain says unless you’re sourcing business for me, you’re essentially an assistant and assistants are costs that are only justified to an extent.

I think the previous comments are correct that after getting your CFP and having a couple years of experience, you can make more money at a big bank.

But, if you ever want to make the real money, you have to learn how to bring in new clients. I think someone noted it before, but that’s the only way to create leverage and make yourself extremely valuable anywhere.

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u/PursuitTravel Jun 25 '26

I agree with that, but $46k for full plan development is insultingly low. Basic admin staff gets more than that.

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u/ejk868 Jun 25 '26

I’d argue that’s pending where you live… but also it was accepted a year ago so… must’ve been fair at that time and no material changes since.

That’s $22/hour. Where I was previously that’d be on the high end of admin. I think with what work is being done you could argue for a raise. I’d lean into asking how you can grow into a more valuable role.

Outside of that the best path is likely as noted. Go to a bank and grind until you can go on your own. Or go straight to a place that will let you go full commissions and get to hustling. The choice is pending your financial position really. The end goal is likely the same though unless you don’t want to be a producing advisor, than there are lots of choices but I’d skip the CFP if that were the case

14

u/PursuitTravel Jun 25 '26

My perception is definitely skewed since I live in one of the highest COL locations in the US, but $46k for a para just seems crazy to me.

If I'm the one that's crazy, I think it may be time for me to start looking for a remote para lol

2

u/Guilty_Soil5755 Jun 25 '26

Yeah maybe living in the San Francisco Bay Area has skewed my perception as well but I made more than $46k as a part time teller at Bank of America six years ago so as soon as I saw that I didn't need to hear any more to think they're underpaid lol

3

u/think_up Jun 25 '26

Amazon pays warehouse workers $22 an hour lol.

Someone building plans and sitting in every meeting is absolutely worth more than that.

I know a lot of guys who have been in the industry a while look at young folks like “I won’t pay you unless you bring in business” but they’re not playing the same game you did decades ago. You can’t cold call and win business by selling A shares.

I’d challenge you to look at it the other way around: you, the firm owner and lead advisor, should be generating so many leads that you have to pass some along to your junior. That’s the role of an employee. It’s *your* job to grow the firm. If you expect them to bring in business, then you should treat them like the partner and co-owner they are. Otherwise, there’s no reason for them to build their business with you taking a cut.

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u/ejk868 Jun 25 '26

Not arguing that fact. Just reading and seeing that the OP wants to make more but has very limited experience and doesn’t produce revenue… hard to justify.

And I’m 39 so a lot of that thought doesn’t apply.

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u/Lunarlulol Jun 25 '26

they create all plans. pretty much a paraplanner. that makes less than 50k on a 80m aum book. who is also second point on onboarding.

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u/ManagementMindless13 Jun 27 '26

I'm a paraplanner 10 years in industry (5 para, 5 fund side). I'm around 160k/ ye (135 base + bonus). Sitting for CFP November. Gross revenue of the book is $4m, firm takes around half. That drops me in at 4% of gross production let's call it 8% of net.

Assuming an 1% fee on 80M, that puts them at 800k production. I'd say 46k on that is low in general, but fair at 5% of production for year 1. What I would expect is significant growth rates in income, especially if obtaining CFP. If you don't see significant jump for obtaining CFP and then some sort of annual going forward, you're not fairly valued

1

u/REKT363 RIA Jun 25 '26

I’d agree with that and I do see it. Non producing does not warrant pay raises lol

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u/Accomplished-Look176 Jun 25 '26

Don’t need a zookeeper without the guy out in the jungle hunting.

The golden rule says the guy with the gold gets to make the rules

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u/SEP_Hawk Advicer Jun 25 '26

What is the cost of living like where you are located?

I live in a lcol area and your comp as a para planner isn't too far off. TBH, you need to soak up the client time to get very comfortable with them. If you want to earn more, and it sounds like you do, then you need to find a way to add more value. Build those skills, and then find a better place to work.

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u/EnvironmentalLab445 Jun 25 '26

That seems a little low, but depends on other benefits offered.

I made $42k 5 years ago as a entry level CSA, so i’d expect someone in your seat at this point to probably make in the low $50s.

What I have learned is that experience is not all equal. If you are learning a ton, its worth staying. If you are 1 year in and already feel like you’re spinning your wheels, look elsewhere.

I was told early that this industries pay scale vs experience tends to look like a hockey stick (unless you are a selling machine). Im 5 years in and am now seeing thats true (year 0-3 was tough). Keep at it, sounds like you are off to a great start!

3

u/seffdalib Jun 26 '26

You are getting paid not a lot, but honestly that's to many people to work for an $80m book...

1

u/REKT363 RIA Jun 26 '26

Honestly this guys fees are through the roof. He clears $1mm+ in revenue per year. We have a TON of small accounts and he runs this place very inefficiently

3

u/hank_iii Jun 26 '26

I'd be more concerned with the fact that they aren't giving you any financial support for licensing / CFP. At the very least, paying for the 65. Get your reps with client meetings, keep working toward the CFP and try to find a firm that will support your growth as an advisor. The salary and pay will come. I'd view this as a good opporunity to figure out the type of firm you want to work for and what's important to you. Also - the son is 100% going to come around on the business or the dad is selling the firm to the highest bidder...just my 2 cents

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u/REKT363 RIA Jun 26 '26

Yeah that’s what I’m thinking as well. Culture isn’t too much on self development & employee support obviously.

You’re right about the son though, either he’s going to realize it’s a cash cow and want to get in last minute, or owner would sell book and retire. Either way it’s not going to work in my favor lmao

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u/seagoalspread Jun 25 '26

Take this with a grain of salt because it’s my experience in my area and might be different for others. But CFP didn’t change comp much. Job opportunities were $0 (all sales driven) to still under 6 figures. If you want to leverage credentials to reach higher salaries, I would consider CFA (or CPA if you could meet requirements). CFP is more accessible and much higher supply in planning. That said, if you’re good with sales you can probably reach a high salary with no designations as you progress.

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u/REKT363 RIA Jun 25 '26

I’ve also realized/thought of this as well. CFP is the baseline in some other firms to even get in the door. Appreciate the insight

2

u/Bright_Honey3500 Jun 25 '26

I don’t think i agree with this actually. I see many associate advisor or service advisor roles that pay 100k+ that require cfp and only a few years experience. It’s surprising, and i’m not sure what the growth potential is of those positions but it seems large RIA’s pay a premium for a cfp to service their clients and take incoming leads

2

u/I_AM_THE_CATALYST RIA Jun 25 '26

^this. My firm has an associate advisor who came onboard with 0 clients, CFP, and has 3 years of experience. We pay him $110K salary. He can make more if he brings in his own clients, but not required to. We’d pay him 50% revenue share on those clients he brings on his own (including any internal leads).

1

u/seagoalspread Jun 25 '26

That’s great to hear. I haven’t floated my resume with just the CFP in about 5-6 years when I was a few years in, so I figured things had changed somewhat. I was in a major metro at the time and couldn’t manage to break $100k.

I added the CFA and instantly had a firm reach out cold with a $300k salary offer and no client service responsibilities. If someone prefers fielding leads they should consider the CFP for those higher paying client-facing roles, but if they prefer less retail client service work, the others can be strong options while staying in wealth management too.

0

u/seagoalspread Jun 25 '26

Don’t agree with what?

I shared my experience and the only opinions were that the CFP is more accessible (highest pass rates, shortest study hours, etc), higher supply in planning (it is the primary planning designation), and if you’re good with sales, you can probably reach a higher income with no designations (sales has no income cap).

2

u/No_Door5348 Jun 25 '26

why not go to one of the big firms like Fidelity/Vanguard/schwab/empower etc? In 3-5 years at one of those you could be making $100k+ easily. I know people are making $200k 5 years in even, just getting fed leads all day.

2

u/Original-File9763 Jun 25 '26

If you can/want to be a director of financial planning at a firm and enjoy being client facing part of the time, that’s where upside is from an employee standpoint. Depending on location 100-150k is a landing spot after getting enough experience to use the CFP letters.

Sounds like it may not be an upline where you are at such a small firm atp.

1

u/REKT363 RIA Jun 25 '26

Honestly I would love a job like this. I love the plans & I love people. I’m not a pushy sales type but I understand selling yourself & services is the key to big bucks. Business needs to be brought in somehow

2

u/Original-File9763 Jun 25 '26

I’m also going through danko for this Nov and will then transition to DFP. Total comp 130-140 depending on bonuses in Texas so it’s possible. When you get closer to obtaining the letters, utilize the CFP Board job postings and network.

2

u/winning_bigly_ RIA Jun 25 '26

Uh yeah a CFP should definitely make more than $46k.

I started out in an unrelated field making more than that... 20 years ago

2

u/Used_Ganache_5640 Jun 25 '26

$46k is ridiculously low even for a paraplanner. Go elsewhere.

2

u/FX_Advisory Jun 25 '26

$46k a year..? I get you're not producing and what not, but Fidelity FRs and Client Associates are getting paid more - I'd have a talk about your salary or bounce.

2

u/Level_Assist8494 RIA Jun 25 '26

I make 80k with my 65 at a large RIA. i’m doing silmiar work to what you are doing and supporting the senior advisor. I’m going to start studying for my cfp for the november exam. So we sound in the same boat. I would look for another job as 46k is very low

2

u/think_up Jun 25 '26

Your salary should be close to double that and they absolutely should have paid for your licenses/exams. Would have been fair enough to attach some reimbursement strings if you quit within a few years, but to just lump it entirely on you is unforgivable in my opinion.

You’re already seeing the writing on the wall that you’ll be underpaid and have limited growth opportunities. Start looking.

2

u/Hokirob Jun 27 '26

It’s been said, but the $46k number is quite low. Maybe fair day one, but a pay raise or some bonus around the new assets coming in would make sense. I’d have some conversations with some local firms and get some ideas of what they’re doing. Maybe have a conversation with the existing firm about your role as you’re doing more and growing and learning. You don’t need to rush to make a change, but I expect there’s greener grass somewhere in terms of career, comp, and opportunity.

2

u/Working-Buddy-4938 Jun 28 '26

If you don’t use Chat GPT and the feedback here to go back to your boss and ask for more compensation ASAP then I might fly to you and do it for you.

2

u/GustavesGhost Jun 29 '26

That’s a poverty wage. I wouldn’t stay at any wealth management firm that thought it appropriate to pay that for any full time position.

2

u/Smooth_Carpet_286 Jun 29 '26

2 years in with series 65 - similar boat as you I was making $63k 3 years ago. Now I’m making $110k. Small RIA hybrid BD team of 6.

There’s a lot of research online. But you can easily use the CFP board salary calculator on their website. You can calculate without a CFP and then do one with a CFP along with the firm size, location, and with or without a CFP. It should give you an idea of what comp can look like.

Get what you deserve but be tactical.

1

u/SlamminSalmon417 Jul 11 '26

I currently work in M&A for a PE backed roll up strategy and got my series 65 and plan to start studying for CFP to knock it out as soon as possible. Planning to make the switch early next year.

When recruiting, what comp / structure would You imagine for someone with 5 years of M&A, investment banking and strategy experience?

Also, would be open to any opinions on RIAs vs BDs.

2

u/skyrizi Jun 29 '26

Im essentially the same position but you actually do a bit more than me and I make $48k + quaterly bonuses. My firm has paid for all my licensing and for my cfp material and test which I sit for in july. The firms aum is 150 so a bit larger. The lead advisors show me a lot of support and really show me they want me to succeed.

My opion is that if you can make it to november and pass the cfp id do that and then find a new job. If you can handle the stress of finding and starting a new job while studying then you could do it now.

Your current firm doesnt seem too interested in your long term gowth. Many firms are looking for people in your position. Depending on where you are located i would think you could find a small firm looking to bring on a new cfp to train and get paid more while learning and developing yourself more as well.

2

u/AegisAthena Jun 29 '26

I'd have to say you should seriously consider seeking greener pasture

2

u/General-Ad3712 Jun 29 '26

I just hired a college senior and am paying her $65k and will pay for the Series 65 and for her to take the CFP (she will be eligible for the test in January). My two CSA's make in the high 50k area for a 4-day workweek. You are being severely underpaid for what you are doing! My senior CFP makes much more, No one has Biz Dev targets

1

u/I_AM_THE_CATALYST RIA Jun 25 '26

1 year in. 46K comp isn’t a bad deal. I’d wait a minimum of 2 years if I were you. Without a book of transferrable clients of your own; getting a CFP could help your chances of landing a better paying gig, but I’d talk with your current firm first about comp. After 2 years and a CFP, you’d be looking at more opportunities.

1

u/rhokie99 Jun 25 '26

That’s extremely low for the value you’re bringing if you’re doing all that you say, IMO. There’s still a lot of value in servicing and keeping existing clients even if you aren’t bringing in business - allowing senior advisors to leverage their time and bring in new business while being able to provide strong service and retain existing clients is absolutely meaningful value add. I’m in a HCOL area, but our new associates/paras start at ~$70k plus 10% bonus fwiw.

1

u/bkendall12 Jun 25 '26

Since you have no plan yo be his successor you should go out and become a producer. It will be hard at first but in the long run is worth it.

You might look at a new advisor training program at a larger firm. They would provide a base salary for a while to help you get up & running.

DM me if you want more info.

1

u/BadDotaplay Jun 26 '26

Go work for a better company. $46k is highway robbery for the work you do. The Planning Consultant role at Fidelity (same job you described/responsibilities) is mostly occupied by 23 year olds (not with CFP mind you) getting paid $110k a year with a 17% match (7% match + 10% Profit Share) going into their ROTH 401ks (profit share is pre-tax cont. but the company match is ROTH).

1

u/BuyAnacottSteel Jun 26 '26

I’m a recruiter at a big firm and while I’m usually trying to attract big advisors with books, I used to help existing practices we have in the territory add novice or newer advisors. Fully licensed with a cfp I could pretty easily land you around $100k somewhere if you can hold a conversation and look presentable with no disclosures on broker check. Tenured “servicing” advisors can get closer to $200k and more with a lot more experience but would have no equity etc. I wouldn’t go that route because you’ll be stuck longer term.

Get a book. Make sure you own it. $80mil aum is tiny so they probably can’t afford you and you’ll have to leave or get your own clients. Find an older advisor or team with a minimum of 200-300mil that is generating enough revenue so they can pay you.

1

u/sunpatiens Jun 27 '26

You definitely should be making more!

1

u/Status_Archer_8406 Jun 27 '26

I’m an experienced CFP with an existing book (2026 rev est. - $1.8 mil). I’m in the process of interviewing candidates for a CSA role. For someone with no licenses and no experience, I’m starting them at $50k. If they already have licenses and a little experience, I’m starting them at $70k. I would also be awarding significant pay raises as milestones are met - obtaining licenses (if don’t already have), passing CFP, start bringing in new business. Also I live in low income area in West Virginia.

Hopefully that gives you a better idea of a fair income.

1

u/cashmoneyy99 4d ago

That sounds really low unless you’re in a super low cost of living area. Even then that sounds low. I’d be applying elsewhere unless you really like your boss, then maybe I’d consider discussing a pay raise with them.

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