Are you considering a career as a Certified Financial Planner (CFP) or are you curious about the potential earnings in this field? You should know that salary levels for CFPs can vary significantly due to factors such as the geographic location in question, experience, and type of work.
In ourCFP-salarisIn our guide, we've broken down these factors in detail and put together a comprehensive state-by-state salary breakdown so you can make informed career decisions in this dynamic industry.
Let's take a closer look at that.
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How much does a common fisheries policy cost?
Earning opportunities for Certified Financial Planners vary significantly across the United States and are influenced by factors such as regional economic conditions, cost of living, and local demand for financial planning services.
By combining data fromCFP Board Compensation SurveyWith state-specific salary information, we've provided a more detailed breakdown of what CFPs earn nationally and in each state.
National average wage
Although the Certified Financial Planner Board Compensation Survey reports a national average salary of $192,000 for CFPs, this figure appears significantly higher when compared to data from other sources such as ZipRecruiter, Payscale and Glassdoor.
Such discrepancies may arise from different data collection methods, sample sizes, and the inclusion of different compensation components such as bonuses and commissions.
Market wage data
When estimating the average salary for CFPs, we considered employment statistics from a variety of sources, including but not limited to ZipRecruiter, Payscale, and Glassdoor.
Each of these platforms uses its unique methods to collect and analyze salary information using a combination of direct user-reported data, extensive surveys, industry-specific research, and advanced algorithm-based predictions.
However, it is important to recognize that this data, while providing valuable insight, has inherent limitations and represents a snapshot due to the ever-evolving and dynamic nature of the financial planning industry.
Therefore, these figures should be viewed as informative guides that provide a general understanding of salary trends, rather than as definitive, immutable benchmarks.
ZipRecruiter
According to ZipRecruiter, the average annual salary for a CFP in the United States is $101,940.
This average covers a wide range of salaries, starting at $61,000 and going up to $141,000. The data shows that the majority of CFP salaries are between $87,000 and $114,500, with the top earners in the field making approximately $137,500 annually.
Payment weight
Payscale's analysis presents a different perspective, reporting the average salary for a CFP at $73,190.
When you adjust this to include additional compensation such as bonuses and profit sharing, the total salary for a CFP on the pay scale ranges between $55,000 and $136,000.
This indicates significant variation in total compensation attributable to factors such as experience, location and individual performance.
Glass door
Glassdoor's estimates further contribute to understanding the salary landscape for CFPs.
As of early 2024, Glassdoor estimates the total estimated salary for a Certified Financial Planner to be approximately $113,448 per year, with the base salary averaging $100,151. This figure closely matches the high end of salary ranges reported by other sources, highlighting the potential for CFPs to earn six-figure incomes.
Wage breakdown by state
For a more detailed overview, we've put together a state-specific breakdown of CFP salaries:
| Stands | Average salary range |
| Alabama | $90.000 – $120.000 |
| Alaska | $105.000 – $135.000 |
| Arizona | $95.000 – $125.000 |
| Arkansas | $85.000 – $115.000 |
| California | $ 105.563 |
| Colorado | $100.000 – $130.000 |
| Connecticut | $105.000 – $135.000 |
| Delaware | $110.000 – $140.000 |
| Florida | $95.000 – $125.000 |
| Georgia | $90.000 – $120.000 |
| Hawaii | $105.000 – $135.000 |
| Idaho | $90.000 – $120.000 |
| Illinois | $ 98.357 |
| Indiana | $90.000 – $120.000 |
| Iowa | $85.000 – $115.000 |
| Kansas | $85.000 – $115.000 |
| Kentucky | $85.000 – $115.000 |
| Louisiana | $90.000 – $120.000 |
| Maine | $95.000 – $125.000 |
| Maryland | $ 99.557 |
| Massachusetts | $ 103.874 |
| Michigan | $ 95.423 |
| Minnesota | $95.000 – $125.000 |
| Mississippi | $85.000 – $115.000 |
| Missouri | $90.000 – $120.000 |
| Montana | $90.000 – $120.000 |
| Nebraska | $85.000 – $115.000 |
| Nevada | $100.000 – $130.000 |
| New Hampshire | $100.000 – $130.000 |
| New Jersey | $110.000 – $140.000 |
| The Mexico | $90.000 – $120.000 |
| New York | $ 110.469 |
| North Carolina | $95.000 – $125.000 |
| North Dakota | $85.000 – $115.000 |
| Ohio | $ 97.981 |
| Oklahoma | $85.000 – $115.000 |
| Oregon | $100.000 – $130.000 |
| Pennsylvania | $ 102.042 |
| Rhode Island | $105.000 – $135.000 |
| South Carolina | $90.000 – $120.000 |
| South Dakota | $85.000 – $115.000 |
| Tennessee | $90.000 – $120.000 |
| Texas | $95.000 – $125.000 |
| Utah | $95.000 – $125.000 |
| Vermont | $ 108.384 |
| Virginia | $95.000 – $125.000 |
| Washington | $ 123.793 |
| West Virginia | $85.000 – $115.000 |
| Wisconsin | $90.000 – $120.000 |
| Wyoming | $90.000 – $120.000 |
Remark:The list covers all 50 states and provides a comprehensive view of CFP salaries across the country.
Keep in mind that a significant number of CFPs work in paid financial advisory positions at banks and other financial institutions. These positions typically offer a stable base salary, often supplemented with performance-based bonuses, adding an element of variability to total compensation.
Recommended course
Interested in getting started? We recommend Kaplan's online study packages, which come with a performance tracker, stackable credits that count toward a master's degree in personal financial planning, and flexible pricing.
For a more detailed overview of the CFP qualification, see ourCFP certificationarticle.
Factors that influence salary
As we briefly discussed, the salary for an average Certified Financial Planner (CFP) is not uniform, but varies based on several key factors, including:
Experience
The salary for a CFP is significantly affected by experience. For example, entry-level CFPs with 1-4 years of financial experience average $67,560 per year, while those with more than 20 years of experience in the field earn an average income of $102,000.
Geographic impact
Salaries in states like California and New York are on the higher side, due to the higher cost of living and concentration of wealth. In contrast, states like Arkansas and Mississippi, where the cost of living is lower, have relatively lower pay scales.
Type of employment
The form of employment has a significant impact on a CFP's earnings. Those who are employed often enjoy a stable income, but may face a ceiling in terms of earning potential. Conversely, commission-based or independent consulting roles can provide higher income but with less income stability.
For example, commission-based CFPs may have the potential to earn significantly more based on the financial products they sell or the number of clients they manage.
Specialization
CFPs who specialize in areas such as estate planning, tax optimization or investment management often have higher fees and salaries. This is due to the specialist knowledge and expertise required in these areas, which are highly valued by customers with complex financial needs.
For example, a CFP who specializes in estate planning can earn more by targeting high-net-worth individuals with complex wealth administration requirements.
Company size and customer base
Working for larger financial institutions or corporations often comes with higher salaries, which reflect the size and resources of these organizations.
In contrast, CFPs at smaller firms or those that operate independently may have different earning potential, heavily influenced by the size and wealth of their customer base. A CFP who manages wealthy clients or a large customer base can see a significant increase in profits.
Understanding these factors will give you a more comprehensive view of what can impact a CFP's salary and help you make more informed decisions about your potential earnings and career path.
CFP-baan
CFPs have a variety of career options available to them because of their specialized skills and extensive knowledge of financial planning. Here are some common CFP roles, each with their own job description:
- Financial planner:This is the most direct application of the CFP certification. Certified financial planners - also called personal financial advisors - provide personal financial planning, insurance and estate planning to individuals and families
- Asset manager:These CFPs specialize in managing the finances of high-net-worth individuals. They focus on asset management, estate planning, tax optimization and much more
- Estateplanner:These CFPs focus on advising clients on wills, trusts and estate taxes and helping secure their clients' financial future for themselves and their heirs
- Retirement planner:These CFPs specialize in planning and advising clients on how to achieve financial security through retirement planning
- Tax advisor:While not a substitute for a Certified Public Accountant (CPA), a CFP who specializes in tax planning can provide clients with valuable advice on how to optimize taxes through investments, deductions, and other strategies.
- Investment Adviser:In this role, a CFP guides clients through investment opportunities and risk management
Each of these roles has its own set of responsibilities, challenges and rewards, as well as different earning opportunities. This makes the CFP certification a versatile qualification for different career paths.
How to Get Your CFP Certification
To earn the CFP designation, you must meet specific educational requirements, pass an exam, gain relevant work experience and follow ethical standards.
To become a CFP, you must have:
- A bachelor's degree (or higher) from an accredited college or university; And
- Three years of full-time personal financial planning experience or equivalent part-time experience. (Note: 2,000 hours equals one year of full-time experience)
Once you meet the above requirements, you will be required to complete a CFP Board Registered Program. This course covers several topics related to financial planning, including:
- Income and savings strategies
- Tax planning
- Investeringsplanning
- Retirement and estate planning
- Risk management and insurance
For individuals who already possess certain advanced degrees or professional credentials, the CFP Board offers an expedited opportunity to expedite the CFP certification process.
To qualify for this accelerated route to CFP certification, you must have one of these designated licenses or credentials
- Certified Public Accountant (CPA)
- Competent lawyer
- Chartered Financial Analyst (CFA)
- PhD in business administration, financial planning, finance or economics
- Chartered Financial Advisor (ChFC)
- Chartered Life Insurance Company (CLU)
- CFP certification from outside the US (for example, from an affiliate of the Financial Planning Standards Board in the candidate's place of residence)
After you complete the required courses or meet the accelerated path to CFP certification requirements, you must register and pass the CFP exam.
Remark: All candidates must adhere to the CFP Board's Guidelines for Professional Conduct. This requires that you act under a fiduciary duty and disclose information about yourself related to criminal conduct, government investigations, bankruptcies, customer complaints, or employment law disputes.
Exam preparation and procedure
Preparing for the CFP exam can seem daunting given its comprehensive nature and the depth of knowledge required in a variety of financial planning topics.
Here are some tips to help you maximize your chances of passing the exam on the first try:
- Understand the exam structure.The exam includes 170 multiple-choice questions spread over two three-hour sessions - both completed within one day
- Make a study plan.Create a comprehensive study plan several months before your exam date. Divide the syllabus into manageable sections and allocate specific time slots for each section. As a best practice, you should spend between 150 and 250 hours on your exam preparation
- Use official study materials.Be sure to use the official CFP Board study materials and manuals. These resources are tailored specifically for this exam and often include practice questions and case studies that reflect the exam format
- Take practice exams.Taking full-length practice exams on a regular basis will help you determine your exam readiness, identify areas of weakness, and get used to the exam format. During these mock exams, take the time to simulate real test conditions
By following these tips, you will be better equipped to take the CFP exam with confidence.
Recommended course: Interested in getting started? We recommend Kaplan's online study packages, which come with a performance tracker, stackable credits that count toward a master's degree in personal financial planning, and flexible pricing.
Frequently asked questions about CFP salary
Can a common fisheries policy generate a lot of money?
Absolute. A career as a Certified Financial Planner can provide significant income. Salaries for CFPs can vary widely, from about $61,000 to more than $141,000 per year, depending on factors such as location, experience and type of work. For more information, see ourCFP-salarisarticle.
What pays more, a CFP or CFA job?
Both CFP and CFA roles are highly rewarding, but their earning potential varies depending on the industry and position. CFAs, who typically work in investment banking or asset management, may have higher starting salaries. However, CFPs with different income models, including fee-based consulting, also have excellent job prospects. For more information, take a look at ourCFP certificationarticle.
Is it worth becoming a Common Fisheries Policy?
It could be. Choosing a career as a Certified Financial Planner offers significant rewards that combine financial benefits with job satisfaction. Furthermore, the CFP profession is not only financially rewarding, but also satisfying in terms of job satisfaction. According to a survey conducted by the CFP Board, professionals with the CFP certification report a high level of satisfaction with their career choices.
How long will it take before a common fisheries policy is introduced?
Becoming a CFP typically takes about four to five years, including earning a bachelor's degree, completing specific coursework in financial planning and gaining relevant work experience. However, keep in mind that individuals with certain advanced degrees or professional credentials may qualify for an accelerated path, which can significantly shorten this time frame.
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- CFP certification
For all related articles, see ourResources for Financial Advisorskant.
