This is a comparison of the salaries and other compensation earned by CFA charterholders, and CFP professionals. We will go over some data on compensation for both of these designations, and then discuss how I see the potential for future pay raises working for people with either of these marks.
The most straightforward part of this conversation is just to look at the median pay for these designations throughout different stages in each respective career. One of the best studies I have seen on this was from investment news in 2016. They look at financial advisors, but not partners of financial advising firms. The median CFP advisor in this group earned $142,750 in total compensation. (show text). Of this same group, the median CFA earned $177,740 in total compensation (show number). But this data set doesn’t tell the whole picture for CFA charter holders, since many of them are working in jobs other than financial advising.
The CFA institute puts out data every year to answer our question here, and I have another video going into the details on a lot of the data they produce. For this video, I’m just going to present the numbers that are most comparable to the ones I just mentioned for the CFP. The median total compensation for CFA charterholder in 2019 was about $193,000. So subtract a few % for inflation since the last numbers I mentioned were from 2016, and then ignore the top 1% of earners which are usually the partners like we did with the last numbers, and you still see what I would consider the typical CFA earning about 25% more than what I would consider to be the typical CFP professional at the early to middle period of their career.
If you have an idea of something you want me to cover in depth, please let me know because I take your requests seriously. Will be back with more CFA Exam tips in a couple of weeks so please submit more questions you would like to hear answered. Love you all!
Tiktok: Tiktok.com/@straighttalksyt?lang=en” target=”_blank”>https://www.Tiktok.com/@straighttalksyt?lang=en
Contact Email: StraightTalksBusiness@gmail.com
*** The information in this video is not intended or implied to be a substitute for professional financial advice. All content, including text, graphics, images, and information, contained in this video is for general information purposes only and does not replace a consultation with your financial or tax professional***