CFA vs CFP - What do they do?

[maximal]

I’m considering starting the CFA exams but I would like to know exactly what CFA’s do. I’d also like to know what they do that is different from CFP’s. I understand that the CFA process is far more rigorous than the CFP which is more of a generalist exam but I still have questions. I’ve done some basic reading but I thought I’d ask here as well.

Is it that the CFA works with larger institutions and the CFP with individual investors? Do CFAs tend to work for clients/institutions with higher net worth? Is there a difference between the financial instruments they work with? It is merely about the extensiveness of the training but that both do the same things? Are there significant differences in fiduciary duty?

[Ron_Swanson]

CFP is for financial planning, generally working with individuals. CFA program is actually more of a generalist program and people from all kinds of backgrounds will have it. That being said the CFA is most applicable to portfolio management.

as far as the instruments/ duties etc. that really depends on the job title.

[Ramos4rm]

@maximal

I’m considering starting the CFA exams but I would like to know exactly what CFA’s do. I’d also like to know what they do that is different from CFP’s. I understand that the CFA process is far more rigorous than the CFP which is more of a generalist exam but I still have questions. I’ve done some basic reading but I thought I’d ask here as well.

Is it that the CFA works with larger institutions and the CFP with individual investors? Do CFAs tend to work for clients/institutions with higher net worth? Is there a difference between the financial instruments they work with? It is merely about the extensiveness of the training but that both do the same things? Are there significant differences in fiduciary duty?

A CFA charterholder does whatever they set out to do. CFA does not guarantee a job in anything…neither does CFP for that matter. The CFA will give you credibility when applying to a variety of investment related jobs. Pursue CFA if you want but don’t go in it with the idea that CFA charterholders have specific jobs. Generally, a CFA alone won’t get you a job. A CFP is specifically for financial planning for individuals. CFA covers a wide spectrum of topics in finance.

[ohai]

CFA is “mile wide foot deep”. It’s just a variety of high level knowledge that is useful to a broad range of professionals. It’s also meant for people who already work in finance - so it’s not a gateway to a career, even if some employers recognize the certification.

CFP is for financial planning, but I think you are also supposed to already work in that field.

[Sweep_the_Leg]

@Ramos4rm

CFA does not guarantee a job in anything…neither does CFP for that matter.

My only beef with this statement is you already have to be a financial advisor to get your CFP so while it doesn’t guarantee a job, I guarantee you’ll already have one if you get it.