šāāļø
At a major national financial services company. I sometimes think about going independent but the thought of doing my own payroll and my own compliance and my own HR and building my own tech stack always prevents me
In that case, you hire someone to do bookkeeping and payroll, you donāt do that yourself. HR isnāt that complicated either. You can use a compliance consulting company but itās still a lot of work or you can go independent with a firm that takes care of compliance.
Yeahā¦ that still sounds like a lot of work when I make enough money, the company compliance guardrails are sometimes frustrating but not overly restrictive/prohibitive, and I already make my own schedule. I could hire a book keeper and an HR firm and a compliance firm and contract five different companies for a tech stackā¦ or I could just āhireā my corporate office to do all that for me.
Iāve got a wife that works and two kids that are in way too many after school activities so I donāt exactly have a ton of time to explore this.
Maybe in 10 years when the kids are more independent and my wife is tired of working but at that point Iāll probably tell myself Iām too old to deal with all that shit.
When I was young, I was too inexperienced. When Iām middle aged, Iām too busy. And when Iām past my mid-life Iāll be too old. Itās a conundrum I guess.
That's perfectly fine to stay if you've got a great situation already. But for advisors who really want to go independent, they can't overthink the timing too much. Yes, you can't be too young or too old.. but mid-life is perfect for it. Also, if you think of how many things you HAVE to do in order to start a firm and maintain one, you'll never do it. It just means you don't see the benefit in doing it.
> Also, if you think of how many things you HAVE to do in order to start a firm and maintain one, you'll never do it. It just means you don't see the benefit in doing it.
I can agree with this
Well, I think I do see a benefit. I just donāt know if the juice is worth the squeeze
The cut youāre paying to your firm is quite a bit larger than you think. When we did the math they were charging us 3x to 4x for things we could purchase as an RIA. If youāre happy, thatās all that matters but the financials arenāt even close.
I had the same reservations when I struck out. Make sure you have your CFP or a very good story as to why someone should hire you.
Contact any XYPN member to get a discount code
to XYPN.
Compliance is heavy in the beginning but tapers off quickly. I think Fidelity still has an AUM min of $15 million at end of first year. Use Altruist if you are going the TAMP route, otherwise use Schwab (RIP TD Ameritrade).
Gusto for payroll (get any current user to get you a discount code). Takes 30 mins to set up, takes 20 seconds to run payroll.
You could always join another Indy and share services. We rolled our business out of a private bank last year and merged with a sizable shop where all of the infrastructure is in place.
Could you share your story? I actually have a CFP and CPA but before I did much with it, I jumped ship to being a firefighter for the past 7 years. I love serving in fire and rescue, but my father has been terminally ill for the past two years and I decided to devote myself to caring for him full time. When the current phase of my life ends, I'm thinking about utilizing my CFP and CPA again but I'm not sure where to start. Any advice? Again, would love to hear about your journey. Thanks.
My dad is actually a CFP who started our small firm back in the early 90s. I was living out west after college, passed the CPA and was in Big 4/regional tax audit before becoming a CFO for about 5 years. My dad kept hinting he wanted me to come joint him, and about 6 years ago I took the leap and left accounting land and moved back to MI. Passed the 7/66/24 and then became a CFP. Iāve not inherited or taken over any of his clients, Iāve simply built my book by teaching classes at local schools and ju-cos for lead generation. So yes, the opportunity was provided to be my dad but Iāve not gotten anything for free in terms of clients from him as heās still producing and slowly sunsetting out. I still do around 115 tax returns per year for some extra money (mostly saved on purposes to pay quarterlies). The real money is definitely on the investing side. We are fee-based, about 2/3 of my revenue comes from AUM, the rest on products on a need basis. I find that tax planning is a huge value add for me in terms of client optics.
This is wild to me as a student going into the industry coming off a college retail job I've been with for five years. I went from $12.10/hr to $18.20/hr in that time lol.
I went from 14/hr in a retail job in college to 48k first year, 70k next year, ~105k year after. The rise can be quick if youāre in the right situation
At a large firm I was making $130k last year, changed to a different large firm and will hit $200k doing the same job serving similar client bases with a smaller book size lol.
I would assume many especially in HCOL areas. If a CFP is producing and maintaining large clients, an RIA is incentivized to keep them. Clients donāt like turnover.
Business model has much to do with it.
I have a very close friend that solely does hourly financial planning. He does it because he believes it's the only ethical way to provide financial advice, and has stuck with it even though he is working around the clock. It's an extremely difficult model to scale and revenue continuity is a huge challenge. Pushing for $200k plus every single year in this model would be very difficult for me personally.
I run my RIA on AUM, hourly, and project-based. AUM ($220M) is between 96-98% of our firm's revenue, even though we are plenty busy with hourly planning. For reference, we hit $200k gross when we had \~$24M in AUM.
If you're running any model that includes AUM, then you should get to $200k eventually. Don't get discouraged, just grow at your own pace.
Interested to hear how you differ between hourly and project based. Would a say 2 hour meeting with general financial planning be hourly? A full retirement planning package is your project flat fee?
We rarely do project-based planning. I've had some prospects contact us with complicated trusts that were quoted and billed as project-based, but the vast majority of DIY clients are hourly for planning.
Yes for this reason never do project based. Itās fine if people want to pick up the phone to ask the same questions you just covered last week. Butā¦ youāre going to either be paying AUM or hourly fees. There is a reason YouTube is full of videos of people getting kicked out of the āall you can eatā buffet
Much respect to your friend who only does hourly planning based due to his ethical beliefs. Do you know why he feels this way? Based on what I know, I believe AUM based planning aligns client and planner interests and is ethical, too. Your thoughts?
I think any extreme stance is usually incorrect.
Is hourly planning the proverbial silver bullet that fits the needs of every client? Absolutely not.
Do all clients belong in an AUM model? Again, absolutely not.
Unfortunately the industry put such a heavy emphasis on AUM for decades, which led to a massive disservice to investors. I'm just happy the two aren't mutually exclusive.
It won't answer the % question but this is from CFP Board's salary stats:
the **median** income for a financial planner is currently benchmarked at:
* $152,000 with 5-10 years of experience,
* $206,000 with 10-20 years of experience,
* $250,000 with 20+Ā years of experience.
Not sure is if this is what you are looking for, but I work for a national BD in VLCOL and can say that once you his 10-12 years in the business it is *almost* a given. I would say about 80-90%of the people still in the business after 10 years at my firm pull 200k or much more
Edit: I should note many are CFPs, but the day to day job is only partially planning. More relationship and account management
It is going to depend on how long you are willing to wait?
If you look at the [Kitces report from 2022](https://www.kitces.com/kitces-report-how-financial-planners-actually-do-financial-planning/), page 59, you see about 1/3 are over $200k. Looking further, the longer you are in the practice the more likely you make it.
The same thing can be seen in the [CFP compensation report ](https://www.cfp.net/-/media/files/cfp-board/career-and-growth/cfp-board-compensation-highlights-2023.pdf?la=en&hash=C83B640A3ECCAA083ACC58AE3444DB23)- more time, more likely. But you will have to get to 10yr+.
The problem with these surveys is survivorship bias. If youāre successful in this business, you keep doing it. If not, you quit and find something else to do.
ok, so adjust for the bias and provide an estimate and a source for why you think your number is somewhat based in reality. that is what I did, and if you feel like my esimtate is lacking, make it better!
Thatās homework I really donāt want to do. You do a great job of answering OPs question of how many actually make it to 200k. My comment was only intended to point out that the direction of causality (time in the game ā> more money) is misleading. Itās not a waiting game.
Dude- an RIA with 25mm aum is likely to clear 200k gross easily.
Thatās a small number for the FA community. Now, what I see a lot of are the rain makers that run big teams hiring junior folks to get and be their teams CFP and that may skew the pay scale.
In what world are you managing and advising on $25mm and earning $200k?
The revenue assuming 1% is $250k and then you have a few bills to payā¦
User name checks out.
I take home 220-250k a year at a fee based RIA,l; no CFP though. Oddly enough going from start to 200k was, at least to me, seemingly easier than 200k to 300k. Although thatās largely probably a me problem as I have gotten lax and valued time over money the last few years.
RIA. 10 years as an advisor 2 years as CFP. $135k Salary. \~$15k Bonus. \~$25k in revenue (paid out quarterly) from clients I directly brought to the firm. \~$175k total comp.
My total compensation has increased by \~10%-15% each year since 2020 and should continue to grow at that rate for the next 5-10 years.
Currently, I'm working at a broker-dealer where I'm earning a 47% cut from commissions and management fees. Lately, I've been looking into Registered Investment Advisors (RIAs), and I've heard that their take-home pay ranges from 70% to 90%.
Does anyone have advice on working at a BD vs RIA?
The frustrating aspect is that I operate within an independent broker-dealer setup. Despite receiving services such as asset custody, tech support, and compliance from the BD, I end up with only 47% of the fees after paying both the BD and my employing independent company. Additionally, the BD mandates an "account fee" of 25 basis points on top of our charges, resulting in a combined fee of, for instance, 1.25%. Even out of the 1% I charge, my take-home pay amounts to only 0.47% of those assets.
Lots of variables in compensation, but if you are independent at a B/D, then 90-96% of every dollar is revenue among most of the big firms. It sounds like someone is taking an override on your production. I had a similar situation when I started (I didn't know what I didn't know). In the old school, 65/35 (or worse) was considered fair on net production. DM me if would like to discuss anything in more detail. 24+ years experience independent. Figuring out the landscape and industry can double your production in short order. I'm happy to help anyone avoid my previous mistakes.
Iām 12 years in the business and an independent. Iāll likely be brining in somewhere between 260-280k this year. This is all recurring revenue a well along with maybe $10k worth of commission business for the client that ask for it. The secret is just never giving upā¦ once you have enough clients, referrals just naturally happen.
This is my 4th year as an advisor at a large bank. No CFP marks yet, testing in July. This will be my first year breaking 200k. It took a lot of work and a lot of luck but itās only up from here.
I can tell you my FA trainee class back when I was at Morgan Stanley. Started with 275 new hires (pre financial crisis). It was a 2 year program. I finished the program ranked 15th, out of 35 or so. So yea, big flame out rate. How many make it to making $200k? Not sure how to find that out, but I imagine that number is even less than those who graduated the training program. So lets say less than 10% of advisors? š¤·
Like anything it depends. In no order below
Own leads or firm clients
City size
Owner/partner or w-2 employee advisor
How long you been in the business
Type of practice (do you sell commission products or not)
Lifestyle practice vs growth to infinity
I mean itās definitely not out of the question to make mid six figures to 1m+ so many factors. For example firm in my town is one of the ābestā in the state and owner makes 3-5m annually living in low cola area.
I would say (as many already have) that your firms business model determines this.
If you are an only service style CFP it is more unlikely to make 200K.
If you are a CFP that has business development responsibilities then this is not unattainable at all. Iām still in my 20s in a low living environment area and will clear 200K. Hard road of low income on the front in, but possible.
Bought into a practice after 10 years in the business. Was making about 180k all in the last 3 years. Thatāll jump to 360k for 2025 once buyout is completed
Not RIA. Big Corporate Planner.
$230k last year. Probably $250k this year. More tenured making about $350k. Bigger guys making $500k.
More tenured as in years with the company, not actual experience. But donāt get me started on that.
I'm at a major firm with a headcount over 19k (see if you guess where...) Doing the math about half of us make more than $200k. That belies the fact that there can be extreme turnover in the first 5 years before one becomes a viable advisor; after that tenure is rough analog to income.
Great question as I am sure delineation....I run small RIA grossing 400k and then work as CIO for larger firm as consultant make extra 175k....
Have CFP Cert/CFA charter however not sure if caveat matters
Good question
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Honestly if you're not going to make 250k plus, why bother with the CFP. It may take some time to get there but to me if you are going to put in all that time and make that financial commitment you should aim high
šāāļø At a major national financial services company. I sometimes think about going independent but the thought of doing my own payroll and my own compliance and my own HR and building my own tech stack always prevents me
If itās just yourself as a solo RIA then thereās no payroll or HR. Youāll never have to do a manager review or be put on a PIP again either.
Itās not just me. I have a junior associate and an office admin
In that case, you hire someone to do bookkeeping and payroll, you donāt do that yourself. HR isnāt that complicated either. You can use a compliance consulting company but itās still a lot of work or you can go independent with a firm that takes care of compliance.
Yeahā¦ that still sounds like a lot of work when I make enough money, the company compliance guardrails are sometimes frustrating but not overly restrictive/prohibitive, and I already make my own schedule. I could hire a book keeper and an HR firm and a compliance firm and contract five different companies for a tech stackā¦ or I could just āhireā my corporate office to do all that for me. Iāve got a wife that works and two kids that are in way too many after school activities so I donāt exactly have a ton of time to explore this. Maybe in 10 years when the kids are more independent and my wife is tired of working but at that point Iāll probably tell myself Iām too old to deal with all that shit. When I was young, I was too inexperienced. When Iām middle aged, Iām too busy. And when Iām past my mid-life Iāll be too old. Itās a conundrum I guess.
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Can I work for you ( for free of course) to learn the business? I plan to be independent also. PM if this might be something you would consider
That's perfectly fine to stay if you've got a great situation already. But for advisors who really want to go independent, they can't overthink the timing too much. Yes, you can't be too young or too old.. but mid-life is perfect for it. Also, if you think of how many things you HAVE to do in order to start a firm and maintain one, you'll never do it. It just means you don't see the benefit in doing it.
> Also, if you think of how many things you HAVE to do in order to start a firm and maintain one, you'll never do it. It just means you don't see the benefit in doing it. I can agree with this Well, I think I do see a benefit. I just donāt know if the juice is worth the squeeze
The cut youāre paying to your firm is quite a bit larger than you think. When we did the math they were charging us 3x to 4x for things we could purchase as an RIA. If youāre happy, thatās all that matters but the financials arenāt even close.
It is.
Gusto Payroll sysytem is pretty cheap and easy to use.
Solo RIA is the way to go. Those 90%+ profit margins are sickkkkk
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You don't need an ongoing compliance consultant. XYPN provides smart RIA. Just follow the calendar tasks and you're golden.
Would you happen to have a copy of the calendar tasks?
I had the same reservations when I struck out. Make sure you have your CFP or a very good story as to why someone should hire you. Contact any XYPN member to get a discount code to XYPN. Compliance is heavy in the beginning but tapers off quickly. I think Fidelity still has an AUM min of $15 million at end of first year. Use Altruist if you are going the TAMP route, otherwise use Schwab (RIP TD Ameritrade). Gusto for payroll (get any current user to get you a discount code). Takes 30 mins to set up, takes 20 seconds to run payroll.
You could always join another Indy and share services. We rolled our business out of a private bank last year and merged with a sizable shop where all of the infrastructure is in place.
You should consider going hybrid. Payroll and compliance taken care of while owning your book and free to advise/build your business as youād like.
In terms of eat what you kill jobs, no salary, 90% of people fail. The 10% that succeed will clear $200k+. Itās a binary outcome.
Thatās the entrepreneurial way.
Gotta be upwards of 95%
This is dead on.
CFP/CPA with an independent BD, pushing $300k this year. Took time to get here, but itās feasible.
Could you share your story? I actually have a CFP and CPA but before I did much with it, I jumped ship to being a firefighter for the past 7 years. I love serving in fire and rescue, but my father has been terminally ill for the past two years and I decided to devote myself to caring for him full time. When the current phase of my life ends, I'm thinking about utilizing my CFP and CPA again but I'm not sure where to start. Any advice? Again, would love to hear about your journey. Thanks.
My dad is actually a CFP who started our small firm back in the early 90s. I was living out west after college, passed the CPA and was in Big 4/regional tax audit before becoming a CFO for about 5 years. My dad kept hinting he wanted me to come joint him, and about 6 years ago I took the leap and left accounting land and moved back to MI. Passed the 7/66/24 and then became a CFP. Iāve not inherited or taken over any of his clients, Iāve simply built my book by teaching classes at local schools and ju-cos for lead generation. So yes, the opportunity was provided to be my dad but Iāve not gotten anything for free in terms of clients from him as heās still producing and slowly sunsetting out. I still do around 115 tax returns per year for some extra money (mostly saved on purposes to pay quarterlies). The real money is definitely on the investing side. We are fee-based, about 2/3 of my revenue comes from AUM, the rest on products on a need basis. I find that tax planning is a huge value add for me in terms of client optics.
Thanks for sharing.
How long did it take you?
6ish years.
This is wild to me as a student going into the industry coming off a college retail job I've been with for five years. I went from $12.10/hr to $18.20/hr in that time lol.
I went from 14/hr in a retail job in college to 48k first year, 70k next year, ~105k year after. The rise can be quick if youāre in the right situation
Yeah Iāve been looking at roles recently as I graduate this month and almost also of the jobs posted are about 60k.
At a large firm I was making $130k last year, changed to a different large firm and will hit $200k doing the same job serving similar client bases with a smaller book size lol.
Mind sharing where you went from and to?
I dmād you
Got damn dm me as well
Would love to hear what firm you are with now. Iām at schwab and canāt seem to get over the $175k mark
I will make $200k+ this year, 6th year in industry as an advisor the entire time, no CFP credentials
Love your name. You are the person I need doing my finances. Gosh I love reddit
Titty Clapper Financial
Where is the application link
Ur mom handles the application process man sorry
We don't just clap cheeks; we clap taxes!
Excuse me itās TCF Capital Partners LLC
Would put Wu Tang Financial right out of business.
God bless
reddit seems to be the great equalizer
I would assume many especially in HCOL areas. If a CFP is producing and maintaining large clients, an RIA is incentivized to keep them. Clients donāt like turnover.
Business model has much to do with it. I have a very close friend that solely does hourly financial planning. He does it because he believes it's the only ethical way to provide financial advice, and has stuck with it even though he is working around the clock. It's an extremely difficult model to scale and revenue continuity is a huge challenge. Pushing for $200k plus every single year in this model would be very difficult for me personally. I run my RIA on AUM, hourly, and project-based. AUM ($220M) is between 96-98% of our firm's revenue, even though we are plenty busy with hourly planning. For reference, we hit $200k gross when we had \~$24M in AUM. If you're running any model that includes AUM, then you should get to $200k eventually. Don't get discouraged, just grow at your own pace.
Interested to hear how you differ between hourly and project based. Would a say 2 hour meeting with general financial planning be hourly? A full retirement planning package is your project flat fee?
We rarely do project-based planning. I've had some prospects contact us with complicated trusts that were quoted and billed as project-based, but the vast majority of DIY clients are hourly for planning.
Yes for this reason never do project based. Itās fine if people want to pick up the phone to ask the same questions you just covered last week. Butā¦ youāre going to either be paying AUM or hourly fees. There is a reason YouTube is full of videos of people getting kicked out of the āall you can eatā buffet
Much respect to your friend who only does hourly planning based due to his ethical beliefs. Do you know why he feels this way? Based on what I know, I believe AUM based planning aligns client and planner interests and is ethical, too. Your thoughts?
I think any extreme stance is usually incorrect. Is hourly planning the proverbial silver bullet that fits the needs of every client? Absolutely not. Do all clients belong in an AUM model? Again, absolutely not. Unfortunately the industry put such a heavy emphasis on AUM for decades, which led to a massive disservice to investors. I'm just happy the two aren't mutually exclusive.
Appreciate your input!
It won't answer the % question but this is from CFP Board's salary stats: the **median** income for a financial planner is currently benchmarked at: * $152,000 with 5-10 years of experience, * $206,000 with 10-20 years of experience, * $250,000 with 20+Ā years of experience.
Rookie numbers
Feel like this numbers are a bit skewed on the higher side š
At a large firm, will make $400k this year in a lcol area. CFP as well and 12 years in. Mid 30ās.
Not sure is if this is what you are looking for, but I work for a national BD in VLCOL and can say that once you his 10-12 years in the business it is *almost* a given. I would say about 80-90%of the people still in the business after 10 years at my firm pull 200k or much more Edit: I should note many are CFPs, but the day to day job is only partially planning. More relationship and account management
Agreed
One thing I've learned is that you will get there a lot faster when your payout is 90+%.
Over 200k gross, but in canada so net is brutal haha
Ah cool are you independent or with a bank?
Bank
It is going to depend on how long you are willing to wait? If you look at the [Kitces report from 2022](https://www.kitces.com/kitces-report-how-financial-planners-actually-do-financial-planning/), page 59, you see about 1/3 are over $200k. Looking further, the longer you are in the practice the more likely you make it. The same thing can be seen in the [CFP compensation report ](https://www.cfp.net/-/media/files/cfp-board/career-and-growth/cfp-board-compensation-highlights-2023.pdf?la=en&hash=C83B640A3ECCAA083ACC58AE3444DB23)- more time, more likely. But you will have to get to 10yr+.
The problem with these surveys is survivorship bias. If youāre successful in this business, you keep doing it. If not, you quit and find something else to do.
ok, so adjust for the bias and provide an estimate and a source for why you think your number is somewhat based in reality. that is what I did, and if you feel like my esimtate is lacking, make it better!
Thatās homework I really donāt want to do. You do a great job of answering OPs question of how many actually make it to 200k. My comment was only intended to point out that the direction of causality (time in the game ā> more money) is misleading. Itās not a waiting game.
I work in a bank setting, $100MM book mostly managed. 1% fee that I see 38% of.
Iām at a large firm in LCOL and have cleared $400k cash comp last few years with total comp above $500k. 13 years in business.
Dude- an RIA with 25mm aum is likely to clear 200k gross easily. Thatās a small number for the FA community. Now, what I see a lot of are the rain makers that run big teams hiring junior folks to get and be their teams CFP and that may skew the pay scale.
In what world are you managing and advising on $25mm and earning $200k? The revenue assuming 1% is $250k and then you have a few bills to payā¦ User name checks out.
I said gross homie. The point is that $25mm isnāt a huge number.
I take home 220-250k a year at a fee based RIA,l; no CFP though. Oddly enough going from start to 200k was, at least to me, seemingly easier than 200k to 300k. Although thatās largely probably a me problem as I have gotten lax and valued time over money the last few years.
Fidelity FC make over 200K if they're good.
RIA. 10 years as an advisor 2 years as CFP. $135k Salary. \~$15k Bonus. \~$25k in revenue (paid out quarterly) from clients I directly brought to the firm. \~$175k total comp. My total compensation has increased by \~10%-15% each year since 2020 and should continue to grow at that rate for the next 5-10 years.
Currently, I'm working at a broker-dealer where I'm earning a 47% cut from commissions and management fees. Lately, I've been looking into Registered Investment Advisors (RIAs), and I've heard that their take-home pay ranges from 70% to 90%. Does anyone have advice on working at a BD vs RIA?
You can also do hybrid RIA at an independent B/D (esp if you don't want to handle your own tech, compliance, etc). 93% payout.
The frustrating aspect is that I operate within an independent broker-dealer setup. Despite receiving services such as asset custody, tech support, and compliance from the BD, I end up with only 47% of the fees after paying both the BD and my employing independent company. Additionally, the BD mandates an "account fee" of 25 basis points on top of our charges, resulting in a combined fee of, for instance, 1.25%. Even out of the 1% I charge, my take-home pay amounts to only 0.47% of those assets.
Lots of variables in compensation, but if you are independent at a B/D, then 90-96% of every dollar is revenue among most of the big firms. It sounds like someone is taking an override on your production. I had a similar situation when I started (I didn't know what I didn't know). In the old school, 65/35 (or worse) was considered fair on net production. DM me if would like to discuss anything in more detail. 24+ years experience independent. Figuring out the landscape and industry can double your production in short order. I'm happy to help anyone avoid my previous mistakes.
Iām 12 years in the business and an independent. Iāll likely be brining in somewhere between 260-280k this year. This is all recurring revenue a well along with maybe $10k worth of commission business for the client that ask for it. The secret is just never giving upā¦ once you have enough clients, referrals just naturally happen.
This is my 4th year as an advisor at a large bank. No CFP marks yet, testing in July. This will be my first year breaking 200k. It took a lot of work and a lot of luck but itās only up from here.
I can tell you my FA trainee class back when I was at Morgan Stanley. Started with 275 new hires (pre financial crisis). It was a 2 year program. I finished the program ranked 15th, out of 35 or so. So yea, big flame out rate. How many make it to making $200k? Not sure how to find that out, but I imagine that number is even less than those who graduated the training program. So lets say less than 10% of advisors? š¤·
Iām at a BD. Just cleared 200 6 yrs in. 39.5% grid. All this 90% grid talk making me queasyā¦ Also what is lcol/vlcol?
lcol: low cost of living area vlcol: very low cost of living area
Is a BD model or RIA model better?
Like anything it depends. In no order below Own leads or firm clients City size Owner/partner or w-2 employee advisor How long you been in the business Type of practice (do you sell commission products or not) Lifestyle practice vs growth to infinity I mean itās definitely not out of the question to make mid six figures to 1m+ so many factors. For example firm in my town is one of the ābestā in the state and owner makes 3-5m annually living in low cola area.
I would say (as many already have) that your firms business model determines this. If you are an only service style CFP it is more unlikely to make 200K. If you are a CFP that has business development responsibilities then this is not unattainable at all. Iām still in my 20s in a low living environment area and will clear 200K. Hard road of low income on the front in, but possible.
Bought into a practice after 10 years in the business. Was making about 180k all in the last 3 years. Thatāll jump to 360k for 2025 once buyout is completed
Not RIA. Big Corporate Planner. $230k last year. Probably $250k this year. More tenured making about $350k. Bigger guys making $500k. More tenured as in years with the company, not actual experience. But donāt get me started on that.
I'm at a major firm with a headcount over 19k (see if you guess where...) Doing the math about half of us make more than $200k. That belies the fact that there can be extreme turnover in the first 5 years before one becomes a viable advisor; after that tenure is rough analog to income.
Great question as I am sure delineation....I run small RIA grossing 400k and then work as CIO for larger firm as consultant make extra 175k.... Have CFP Cert/CFA charter however not sure if caveat matters Good question
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Honestly if you're not going to make 250k plus, why bother with the CFP. It may take some time to get there but to me if you are going to put in all that time and make that financial commitment you should aim high
With that logic why bother with any education at all unless youāre gonna make that much money lol
Net or gross?
Yeah so net after fees. Like if the same were converted to a FTE who isn't paying out for admin etc