Top guys make about $1 million after 10 plus years of experience usually they own their own shop. These guys are top 1% Not sure about the average. My sense is that the average for people who actually work as in put in full time hours is about $100k. Its either the easiest low paying job or the hardest high paying job. There are lost of people who work out of their house, look after a few family and friends and there are also a lot working in abnks etc making small salaries plus bonus that bring down the averages.
(Damn since we’re not going to bash lawyers anymore…) Aren’t there a few different business models that a CFP can follow: (1) fee only, maybe they get $1500 to create a plan and $500/year to update the plan, The client may execute the plan, (2) kickbacks from the mutual funds they buy on behalf of the client (3) fee based on a % of assets being managed. Is this right? Are there others? What model do most CFPs follow?
Im a CFP working in Wealth Management attempting to make the jump over to the analyst area, but pretty happy with where I am at currently. Rattiner’s study guide is OK.I went to his three day live review course when I was taking it and ended up failing the exam the first time (completely underestimated it!) Second time around I took Ken Zahn and found his approach to be a better fit for me. compared to the CFA exam, the CFP has the 5 module requirements (those are easy tests), but the comprehensive exam is not a walk in the park. First, it is subjective in some areas (what issues SHOULD the CFP address first? Wills or Umbrella Policy?). Second, it is a two day test. This messes with your head and is a tough exam to sit for. However, the comprehensive final is about as hard as Level 1 CFA. In volume, the CFP comp exam covers about 6 text books worth of material. Each level of the CFA is about 5 text books, give or take.
Yep. People suggest that the fee only model is the most unbiased and professional. It works more like a billing for time spent like you suggest but the cost per plans can be quite a bit more depending on the complexity of the work required. While you can go anywhere to implement the plan they might have somebody to “refer” you to or they might offer in house services where they sell you the investment or insurance products. They will usually have a network of lawyers and accountants to complete other aspects of the plan. With large enough accounts they will refer you to a PM. The mutual fund kick backs are commission on the sale of the prodcut and then an ongoing fee to work with the cleitn watch the account and the manager etc. The % of AUM is said to be fee for service but it is really just like the ongoing fee of a mutual fund in many ways although there can be some tax benefits. It is just billed directly to the client or the cleint’s account The first model gets a lot of attention but it is not that common. The last model is getting more traction but still lagging. The middle model is for better or worse probably still the most common. The compensation is bundled with sale of an investment or an insurance product. It has many problems probably the biggest is that there is not a direct relationship between the demands of each individual client and the amount they are charged it is just assumed that a cleint with more money will demand more time and therefor the dollar amount they pay is larger. KJH Wrote: ------------------------------------------------------- > (Damn since we’re not going to bash lawyers > anymore…) > > > Aren’t there a few different business models that > a CFP can follow: > > (1) fee only, maybe they get $1500 to create a > plan and $500/year to update the plan, The client > may execute the plan, > > (2) kickbacks from the mutual funds they buy on > behalf of the client > > (3) fee based on a % of assets being managed. > > Is this right? Are there others? What model do > most CFPs follow?
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Sorry for the multiple posts internet slow.
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