We are currently in the midst of the biggest transfer of wealth in modern history. Baby Boomers and other seniors will hand down $70 trillion between 2018 and 2042. Some $61 trillion will go to their largely Gen X and Millennial heirs, with the rest going to philanthropic causes.
That is a lot of money, and many of those heirs will need someone to help them manage it. If there was ever a good time to consider becoming a Certified Financial Planner (CFP), it’s now.
A CFP helps people create and maintain a plan that will help them meet their financial goals like buying a home, paying for their children’s education, retirement planning, and leaving a financial legacy for their families and causes they care about.
Some CFPs specialize in different areas like retirement or estate planning, and some work with a specific type of client like doctors or small business owners.
CFPs help clients choose investments and investment products, can act as a neutral party when spouses disagree about the best course of action regarding a financial decision, and can provide guidance when the market is bad and you’re considering a decision that may hurt your long-term financial goals.
Becoming a CFP requires passing an exam and abiding by the ethical standards set by the Certified Financial Planner Board of Standards. A CFP is held to a fiduciary standard, meaning they must legally act in the best interest of their clients.
Becoming a CFP requires commitment. The process generally takes between 18 and 24 months and can cost at least $4,000, not including the college requirement. These are the required steps:
As you can see, it takes a lot of time, dedication, and money to become a CFP. Is it worth the investment?
The average yearly salary for a CFP in the U.S. is $89,649, which is $43.10 an hour for a 40-hour week. CFP salaries can be much higher and lower, with top earners making $131,500 per year and low earners making just $29,000 per year.
A career as a CFP can be rewarding as you have the opportunity to help people reach their financial goals. The career can be well-paying and offers a lot of location flexibility as the services you provide are needed across the country in large cities, small towns, and everything in between.