Financial Planners: The Power of Certification

Financial planners play a crucial role in managing individuals’ wealth and helping them achieve their financial goals. While this profession offers a hefty salary, certified financial planners have an edge over their peers.

The Certified Financial Planner (CFP) certification, administered by the CFP Board, is the most highly regarded credential in the field of financial advising and planning. To shed light on the benefits of this certification, the board recently conducted a compensation survey—an industry first.

According to the survey, the median total compensation for financial planners in 2022 was $198,500. However, Certified Financial Planners earned an impressive 12% more than their uncertified counterparts. This substantial pay difference underscores the value of obtaining the CFP credential.

With its newfound nonprofit status, the CFP Board aims to promote the financial planning profession among high school and college students and their parents. The survey results provide valuable data for this endeavor. “We’ve always touted the benefits, but this data allows us to go to a different level,” says Matt Boersen, Chairman of the CFP Board’s Board of Directors and Managing Partner at Straight Path Wealth Management.

Aside from increased earning potential, the survey also measured career satisfaction among CFP holders. An astounding 84% of those surveyed reported experiencing a high or very high sense of personal fulfillment. Stability, work-life balance, and career advancement emerged as top perks of being a CFP.

Moreover, the survey revealed that experience and supervisory responsibilities greatly impact compensation. CFPs with over 20 years of work experience enjoyed a median total compensation of $250,000 in 2022. On the other hand, those with fewer than five years of experience had a median total compensation of $100,000. Additionally, CFPs overseeing six or more staff members reported a median total compensation of $385,000.

Interestingly, the average CFP professional spends one day per week working away from the office. This flexibility allows for a dynamic and adaptable work environment, further contributing to the profession’s appeal.

As the ranks of CFPs continue to grow—approaching 100,000—the CFP Board remains committed to expanding the financial planning field’s influence. Through ongoing promotion and the credibility of the CFP marks, this esteemed board strives to attract talented individuals who seek a fulfilling and prosperous career in financial planning.