CFPs Out Earn Different Planners By 12%, Examine Finds

Monetary advisors who earn their CFP certification are incomes 12% greater than their friends, in keeping with a brand new CFP Board examine launched Thursday.

That benefit translated right into a median of $23,820 in additional annual compensation for CFPs in 2022, the examine mentioned. In consequence, the median complete compensation for CFPs was $222,320, whereas non-CFPs earned $198,500, in keeping with the CFP Board 2023 Compensation Examine. The skilled certification physique defines complete compensation as annual base pay, variable pay, firm income and revenue sharing.

“The findings underscore the advantages of incomes CFP certification and a profession in monetary planning,” CFP Board CEO Kevin R. Keller mentioned in an announcement.

Requested why he thought certificates holders earn extra, Keller mentioned in an e mail,  “CFP professionals are particularly educated to offer holistic monetary planning to shoppers…so they assist folks obtain their goals.”

CFP professionals “additionally decide to CFP Board to behave as a fiduciary—that’s, to behave in one of the best pursuits of the consumer. As extra corporations undertake holistic monetary recommendation as a enterprise mannequin, the competence, ethics and professionalism that CFP® certification represents are more and more in demand,” Keller added.

Expertise and years working within the discipline of planning and monetary recommendation play a vital position in figuring out compensation, in keeping with the examine.

CFPs with lower than 5 years of labor expertise earned a median 2022 complete compensation of $100,000. These with 5 to 10 years of labor expertise earned a median complete compensation of $152,000, whereas these on the job for 11 to twenty years earned $206,000.

CFP professionals with greater than 20 years of planning expertise earned a 2022 median earnings of $250,000, the board discovered.

CFPs with managerial and supervisory duties additionally sweetened their complete compensation. “For monetary planners supervising employees, compensation scales up considerably. Those that supervise six or extra employees reported a median complete compensation of $385,000 in 2022,” the CFP Board mentioned.

Planners with a CFP certification skilled “regular progress” in annual compensation over the previous three years, with a 7% to 9% improve annually from 2019 by 2022, the examine discovered.

The certification physique discovered that “just about all CFP professionals’ compensation packages embody high quality retirement advantages that present a basis for monetary safety once they retire.”

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