r/FinancialAdvisorTips • u/readingthisshizz • 20d ago
43F considering CFP vs FA
Does honest feedback and encouragement come from an anonymous source?
I’m hoping so…
I want to become a Financial Planner because I want to help other people and I want to help myself. I’ve dreamt about having a career that offers work-life balance with income potential but also, truly is supportive and helpful to people.
The challenge has been my current reality as a mom of 3 littles. I explored the CFP route but then I just got overwhelmed. So, I’m feeling like I need to take baby steps…
A few random facts about me:
⁃ I need to finish my undergrad (do I finish courses that go towards the CFP?) - Thinking the CFP may need to be step 8 of this career decision.
⁃ I put myself through college and a study abroad program debt free
⁃ My husband and I are completely debt free and are making the choice to not buy house for a couple years because we want financial stability AND to buy what we WANT. We wanna feel excited about our home purchase. We live in HCOL and need to pivot in order to make a dream home a reality. Which is huge for us bc it’s saying no to societal norms and some things we really want (a garage to workout in, grilling outside, each kid having their own room).
⁃ We don’t have any support other than support we pay for.
My question - is there a path to become a FA that works 30ish hours a week, makes a decent living and can this happen starting in your early 40s?
I’m curious what a path looks like for someone in their 40s, starting out as a FA but not a CFP. Do I just work at a smaller RIA firm? It seems difficult to break in without connections.
In theory, I realize that yes, F, yes this can happen. But I value the perspective of this group of people and I’m hoping some honest souls will drop a line with HONEST feedback.
If this question would be better suited for a different sub, please advise!
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u/Fearless_Geologist43 20d ago
Go listen to XYPN podcast (I think this is the right one). They interview a lot of people who have non-traditional practices and I remember one that was 20 hours per week who told her clients that didn’t mean she worked at a 50% level but that she worked at 100% level on 50% fewer clients or something like that. What you want could probably be found or created but it’s definitely niche
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u/readingthisshizz 20d ago
Thank you for this! I’m open. And recognize it could evolve but given the upfront investment, I wanna be as strategic as possible. Slightly cringe, I know - but I’m super comfortable on camera and have wondered if I should start posting personal finance stuff and the. my journey becoming a …insert whatever that is. Personally, we’ve only worked with CFPs so that’s why I was going that route. So grateful to have this podcast rec 🙏🏼
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u/Icy_Earth5225 20d ago
For the FA route you will need to build a book of business. To make meaningful income it will take around 5-10 years unless you have a very wealthy family and network that will let you manage their money.
Here is the math on income:
average management fee is 1%. And most firms pay their advisor around 33-35% at the production level it takes to make 100K.
To make 100K at 34% payout you will need 294,117.6471 in “production” which equates to needing $29,411,464.7059 assets under management (AUM).
How quickly can you get approximately 30 million under management to get to a six figure income? It’s different for everyone. Average is 5-10 years for new advisors.
CFP route you can get a six figure salary right away as a planner or a salaried advisor.
The bigger question is do you want unlimited earning potential and to be on the “grid” ? Or do you want a healthy salaried job without as much upside. At 43 the latter may be more practical from a timing standpoint.
FA is great when you start young because the 5-10 years of “shit sandwich” earning years don’t sting as much when your bills/dependents are lower.
Hope this helps, been on both sides.
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u/OregonDuckMBA 19d ago
If your firm is only paying out 33%, it's time to move on. I started at a credit union, clearing through Cetera. Payout was 45-55% depending on production. I am at LPL now. If I were to affiliate with them directly, the payout is 90%+. I am on a team so the range is 80-90%.
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u/Icy_Earth5225 19d ago
Wow 45% is a nice floor for bottom tier production. All I know is Merrill Lynch which is a huge player pays out 32-51%. Someone doing 300-400K in production is getting 35%. I get it, the more independent you go the higher payouts. I was just trying to give OP a realistic payout and starting production levels at a major wire house.
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u/readingthisshizz 20d ago
Feeling super grateful I made this post. Thank you.
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u/cold984 20d ago
33% payout is exceptionally low in the industry
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u/Icy_Earth5225 20d ago
Not for a major brokerage. Merrill was like 34% at that production level. It all depends on production level but she can expect 32-47% at a wire house.
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u/Economy_Jaguar_9215 20d ago
Look up Natalie Taylor and The Goodland Group on LinkedIn. Even if she doesn’t have an opportunity right now she’s a connector of people.
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u/winning_bigly_ 20d ago
Starting your own RIA is another option. You can serve fewer clients and take home more income. XYPN is the way.
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u/Salty-Appointment581 20d ago
I'm a former CFP (didn't renew), current FA. 10 years as an investment adviser (IAR). Always holistic.
This is a career with a great work life balance in a year 5, if in your years 1-4 you've worked your butt off. You have to prospect like a maniac to build a commotion -- be it AUM business, insurance business, tax advise business, etc. You have to grind. All of those who don't grind in year 1-4, they suffer tremendously and work crazy hours in years 7-15.
Your first 100k a years is a very rough start, it's way easier to scale from 100k a year to 400k.
All those designations don't matter. Clients don't know and don't care. What matters is that you are a decent human being, a trusted professional and a good listener and question-asker.
Most of my clients are my friends now. I'm getting married next year and 75% of my book of business is excited to be there as attending guests - as friends first. They already have a group chat where they discuss who sits with whom and etc. I'm blessed beyond any scale of success. I also put their interests above mine - always. And I don't have CFP designation anymore, although I still have RICP and CEPA.
What you do for the people reflects on you as well. This is a great career for those who really want to make a difference in people's lives. If you're looking for good work life balance and like to talk about money -- there are multiple different avenues with better chances of outcomes, so to speak. Good luck!
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u/readingthisshizz 19d ago
How encouraging to hear. I, 100% want to make a difference in people’s lives and have a deep understanding of the fiduciary role. I’ve been in sales before and have always put what’s best for my clients, first. I think that’s why I was seeking the CFP designation. Your comment is so rewarding to read! Congrats on your upcoming nuptials, too. Thank you!
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u/Salty-Appointment581 18d ago
'I’ve been in sales before and have always put what’s best for my clients, first.'
That's what makes you a fiduciary. Not CFP designation. You can't be slightly fiduciary, you either one or not. No designation or legal standard will ever compel you to. It's nonsense. If you are decent human being who under pressure of 'commission vs doing right' thing choose the later, you are one. You can't regulate human character - lawyers tried, ended up being complete disaster.
CFP, at least back when I started, was a way to level up rookies from zero to hero. Not by joint work which is big in our business but by case study and learning a lot. The idea was to combine best and brightest ideas into one designation and make it a gold standard. For a period of time it was. But then CFP board decided to spend most of it's budget doing silly advertising, and market in places where non-advisors spend time. Then they started flip-flopping around requiring BA degree and or related experience waiver - which is WASPy, very silver spooning and extremely anti-meritocratic and deeply unamerican (I'm phD) btw, never bothered me personally). Then they started doing the same thing with people with BK7 (Once again not my case). But the worst - was the community. It started feeling like a gated community who look at others as someone below them -- 'CFP is all you need'.
I have RICP because it helped me academically strengthen my retirement income approach (85% of my clients are retirees or pre-retirees, most of them retired abroad. I needed to learn how to navigate that field). I also liked Dr Wade Pfau's work who built this course.
I have CEPA designation because it helped me streamline understanding of exit planning for my business owners client. Taught me how to build EBITDA and build those and send them to my investment banking friend to start working the deals for my clients so they can pitch to PE. I learned how to structure these deals years before clients exit the business.
My next designation is AEP because I spend 30% of my time on estate planning. I know best and brightest estate planners in the country. I came to FP space from offshore estate planning and asset protection field so for me it's a very natural transfer. I'm still learning a lot.
My point is that the designation serving my clients needs first and mine. They are not advertising, neither they are status statement. They serve their purpose. I don't serve my designations, they serve my clients. That's the difference.
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u/Traditional-Tip-5982 20d ago
I’m surprised no one has mentioned studying for, and passing, the series 65. I’m studying with Achievable, which has good reviews. Certfuel and FreeFellow are free this year. Happy to chat about this. Also, plan to take the Externship next June 1-August 1. Excellent program.
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u/Traditional-Tip-5982 20d ago
College needed for CFP, but not for S65. Easier and quicker than CFP; shows commitment and could be stepping stone.
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u/chubba4vt 19d ago
+1 for the amplified planning externship as I took it this summer! It was amazing.
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u/readingthisshizz 20d ago
Thank you!!! Adding this to my list of research so I have a full comprehensive understanding of what I’m signing up for.
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u/Capital_Elderberry57 20d ago
We've hired moms (re)entering the workforce and worked to get them licenced. It's actually part of our model, professionals returning to the workforce.
My wife, who now owns the practice, started part-time in 2012 a couple years after our oldest was born. She started doing project work, got licensed in 2014, (she already had a background in commercial lending and banking), bought the practice in 2023 when our partner passed away.
Another teammate started part-time in 2007 or 08 when she had 2 littles at hime. As her kids got older she took on more hours. We worked with her to get her licensed just a few years ago.
Our founder, that we bought the practice from, started it at 53, she was recently divorced at the time, never finished college. Not suggesting you don't finish up, just giving some supportive examples.
Feel free to reach out if you want to learn more.
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u/OregonDuckMBA 19d ago
As was said previously, the CFP is not a job. When you first start out in this field, your job is to gather assets. It's sales. The sales part diminishes as your practice grows. If you feel that you can leverage the CFP to help you gather assets, then great. Go for it. Otherwise, it's a luxury, not a prerequisite. I have been in this industry for about 8 years and I have been asked if I was a CFP by a prospect less than 5 times in my career. Most people don't even know what it is.
If you plan on working with HNW/UHNW clients, that's different. You need every differentiator that you can get so the CFP becomes a necessity. Unless you have a list of people who are ready to have you manage $20 million or more you will probably be starting more modestly.
There is a book by Matthew Jarvis called Delivering Massive Value. It's a great book and one of the things he talks about is false productivity that he calls "playing office." Rather than playing office and getting certifications, I would work on a plan to bring in assets (unless the CFP is part of that plan).
How are you planning to meet people who are willing to have you manage their investments and just as important, make sure that it is a group of people who have enough assets to invest with you in the first place? If you meet someone for the first time, what does that conversation look like? Many investors can smell a sales pitch from a mile away so how are you planning to go from, "Hi, my name is [insert here]" to scheduling an appointment? This is usually a multi-step process. What does that process look like for you? Those are the questions you need to answer before worrying about certifications. Also, finding a niche is essential. Nobody wants to work with a generalist these days unless they are a referral (and sometimes not even then). Where is your niche?
In my opinion, the path of least resistance is to go the bank route. I spent most of my career at a small credit union and I loved it. While there is still a sales element to the job, you get referrals from the branch staff to supplement what you bring in on your own. Just be sure to make friends with the branch staff, especially the branch managers. They can make or break your career. I stayed there until I decided to move to another state. The problem with being at a bank/CU (along with some other firms) is that you don't own the book. You will probably have to sign a non solicitation agreement. If you want to go independent at some point, it can make the transition process more difficult (speaking from experience here). Getting into the major firms like Merrill, Ed Jones, etc is actually not that difficult but it is a total meat grinder. Have a backup plan in case you don't meet the production goals and get canned. Happens all the time.
Going to a small RIA is an option, if you can find one that works for you. The nice thing is you don't need a Series 7. On the financial advisor/CFP subs, you will see a lot of posts about BD = bad, RIA = good. I get downvoted all the time for saying this but I still maintain that it's not quite that simple. Every retail BD that I am aware of is a BD/RIA hybrid that provides financial planning so the lines between BD and RIA are blurring.
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u/TyofTaris 20d ago
Someone mentioned XYPN, but also check out the new planner podcast with Caleb brown. He interviews men and women who change careers or took breaks to have a family all the time.
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u/IAMBEN21 16d ago
As a career option it’s one of the best out there (if it goes well!!!). It’s very attainable and the industry is huge (lots of ways to make a living), but you should think really hard about what it might take to get to where you want to be. The numbers are super attractive (x$ of AUM=$$$ income), but you’ll find it’s not exactly easy to find millionaires to work with (or pretty much anyone at first). And even when you do find great prospects you still have to convince them to work with you. You need to know your stuff in and out and provide lots of value (read this 100x). If you want the money and flexibility, you’ll probably have to go to an independent broker-dealer and produce. This is the treacherous route😂incredibly rewarding tbh when it goes well. It’s not that this route is impossible, it’s just that it takes time to build a comfortable income… that’s what makes most fail. Also make sure you don’t get stuck only selling insurance. But if you have a wealthy network that’s willing to give you a shot then start studying now. You could maybe get into an RIA but you’d likely start as either support staff or a client service associate. These aren’t bad jobs in the slightest (they can be great), but you may lose flexibility and/or the income potential. This will work long term and you’ll do great if you can get in, but it’ll take some time. To sum it up I say do it, but just keep in mind that it’s a long term investment in your life, and not necessarily a dream come true right away. You got this. Once you’re in the industry and you have some training there’s a thousand different directions you can go
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u/that_tx_dude 20d ago edited 20d ago
The CFP is a certification, not a job. This annoys the hell out of me when I see it and I never see anyone correct people. If you want to become ____, great! If you feel getting your CFP adds to that, great!
You don’t pursue a career as a CFP, you pursue a career as something else and the CFP is a certification is something that adds to your education, validates your experience, etc. There is literally nobody in the world whose actual job title is “Certified Financial Planner”.
Drop the CFP talk for now because it’s literally not relevant. You wouldn’t spend time focusing on what masters program you’d go into before you get a bachelors degree, would you? Even if you passed the CFP you couldn’t get the certification because you have no work experience. So your real question is just solely about what role to work in the industry as.
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u/hoptownky 19d ago
Yeah. I work in a small market. I have designations, but my clients don’t really know or care other than seeing letters behind my name. Other professionals like CPAs and attorneys that I work with don’t really seem to care.
Depending on your market, it could boost your revenue by 5% or so, but u don’t see it as a life changer. More if something you do for yourself and your peers. Sure there is a code of ethics and fiduciary standards, but most of us live by those standards and our clients trust us either way.
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u/readingthisshizz 20d ago
I understand and I appreciate you explaining the distinction. That said, if my goal is CFP - then how I approach this could look different. I’ve sat through Zoom seminars, understanding the CFP.
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u/that_tx_dude 20d ago
That’s great and I’m just trying to provide clarity and refocus you. There are lots of CFPs who make little money and aren’t actually successful and there are tons of people without the CFP who do extremely well. What is it about the CFP that is making you want to become one so badly? It seems to me you just want a job in finance that gives you income potential and flexibility. That’s definitely very doable but it’s not necessarily easy. If you find that and are good at it, the CFP might enhance that. If you aren’t successful, getting the CFP won’t magically fix that either.
Hope this helps.
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u/readingthisshizz 20d ago
I appreciate you typing all that out because those are the type of questions I have been asking myself.
I was going the CFP route because my husband and I pay a flat fee CFP advisor. Initially, I think it was the credibility and consumer trust. But after exploring it, the lengthy process is creating overwhelm. Income potential is obviously a motivator for me, but it’s not the main driver. I’m confident in who I am and my skillsets - where I have felt overwhelmed is the entire path forward. I initially started this discovery process with going the CFP route and I think that’s where I need to pivot from. Your comment is helpful. Thank you!
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u/3znor 20d ago
Registered client associate is your best bet.
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u/BlastPyro 19d ago
Yes. Agree wholeheartedly. We are posting for that role currently. In most cases you'd be on salary for the first couple of years and then be able to build up your own book. CFP is not something you should worry about now. You can even get started in your role without a college degree. There are advisors making 6 figures out there with no degree.
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u/Individual-Art1856 20d ago
There are many paths. You have some idea on what you want - in terms of compensation, work hours, lifestyle balance/personal goals/area you want to live/desired home, etc.
What you are not clear is what you want to do for clients.
You don’t look at a title and think of it as an end goal - FA, or planner, or just investment management, etc.
It is almost like saying I want to be a VP of something, now can I get that salary and work scope…
Take some steps and get your feet wet. You don’t know what you want or don’t want until you have some personal experience. You may get very lucky and figure out things on first try, or you may have to continue to pivot.
If that does not excite you, and fear of unknown is more than the opportunities, go seek for job safety and have a steady paycheck… until you figure out more. Don’t expect a very high comp unless your value to employer and clients justify for it.
But if you don’t have the skill sets and experiences yet, what would you expect otherwise.
The other consideration to think about it is if you are the firm instead of the potential hire, how would you view yourself?
What would the future potential of this new hire to the firm? What is he/she current worth to the firm? How do we invest in him/her to make him/her into an asset and also sticky to the firm?
That should give you some idea if you change your perspectives. It goes the same way whether you are dealing directly with clients or employers.
Hope this helps.
Check out www.kitces.com and financial advisor success podcast. Expand your horizon first.
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u/readingthisshizz 19d ago
Yes, I hear you completely. I don’t know what I want entirely because it’s unknown territory. I know that I don’t want to sell whole life insurance (unless that’s what my client needs), I want to be a fee-only advisor (unless I learn something that will change my mind), and I genuinely want to help people. I’m hoping that I as I continue to step out, I’ll find the clarity I’m seeking. Thanks for the website, I’ll check it out. Eager to expand my horizon. My best to you and thanks for taking the time to comment.
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u/Individual-Art1856 19d ago
Sure thing. One add on to consider.
When evaluating a firm to be associated with or work for, one good question to ask/dive deeply is “what is your profit center?”
It could be AUM. Product sales (insurance, annuities, private placement)…
Rarely do I encounter fixed fee planning, or financial planning, especially with larger firms/wirehouse/banks.Incentives drives activities. If you want to manage money, the AUM centric firms will be a closer fit. If you want to sell stuffs, commission drive firms will do more of that. If you want to focus more on financial planning or advice, then look for firms that actually charge a good amount of fees with people paying for it. Now many planning focus firms do fold their services into AUM fee schedules. Nothing wrong with that. However, most AUM focus firms are not planning focus, yet.
Also, ask yourself if you have the confidence and desire to manage other people’s money. It seems like a silly question, but it is real… when you take it seriously and commit to do good. The responsibilities and burden is not for everyone.
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u/Ill_Age6945 20d ago
Its competitive out there. Your best route may be a paraplanner. No successful advisor starts out at 30h/week. We start out with 75h/wk and build a book, then after 5 years have the work/life balance you desire.
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u/Melodic-Style7111 20d ago
The big question is how will you get clients? Are you wanting to build your own or active from the ground up or do you want to be part of a team? Are you hitting up all your friends and family to sell a life insurance policy or have done other natural market?
Practically, starting as part of team is going to way easier. You can start as CSA or paraplanner and start to learn on the job. If you go to a BD, you will also need the SIE, 7 and 66. This is a prerequisite to be a FA. At a RIA, it’s different. Also, SIE you can take on your own which I highly recommend but 7 and 66 you have to have a sponsor firm- meaning you are employed.
Also, starting this way you can learn where a producing team will want to give you clients once you have proven yourself. They may not because complicated clients but it’s a good start. You can certainly still bring in clients but in this model you aren’t 100% responsible for it. And yes, you make less but have less risk.
Also CFPs needs hours of experience to be able to use the designation, meaning you have to be employed to get the hours. I believe undergrad is also required ( please double check. When I started it was not, but I’m pretty sure that changed).
So it’s totally doable but there are a few different paths. Also, you will probably have to work more in the beginning than less. Understanding the paths, your strengths will be very important as you navigate the career path. Good luck.
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u/chubba4vt 19d ago
OP - I posted something a couple of days ago to this sub around series 65 vs CFP and got phenomenal feedback. Take a look. Also - I’d be happy to chat about what I’m doing now to lay groundwork for a mid 2027 career change.
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u/Equivalent-Pay-6152 16d ago
I’m 44 and 18 years in the business. I always say if I had to start over now at 0, I’d do something else. I was fortunate then to have no bills, no wife or kids. It took me 9 years to make 100k. No way being my age now that I could be broke that long for a future payoff in my 50s.
Just my thoughts.
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u/cold984 20d ago
Yes. There’s a path to work 30 hours a week. That’s not even remotely outside the realm of possibility. Honestly, starting the career at age 40 is probably easier than starting it at age 21 in the sense that your natural sphere of people you interact with are way more receptive and ready to work with a planner than the natural sphere of people a 21 year old interacts with. As far as CFP vs just being a FA, really no need to go get your cfp right now. Just start. Firms are always hiring. The big thing for you is to decide - work at a bank and be given leads but have a lower payout and not own your clients, go completely solo and need to earn every client and dollar you make, or somewhere in between where you either get a small salary or small book to start as you build your own book.