Hi All,
Would love some insight. I'm a Financial Advisor at a wirehouse working alongside my father (35+ years experience). I graduated in May 2019 with a B.S. in finance and economics and that summer passed the 7 and 66 before I joined his team in September. Along with prospecting, my role on the team is to build financial plans for our clients and help with day to day business development. Stuck working from home due to coronavirus, I've had some time to think more about my role on the team and how I can add more value over the long term.
My father has no designations and doesn't see the value in them. He's pretty old school in that regard, but rightfully so because he's been very successful on his own without them. I am very lucky to be working with him and have his support and credibility backing me, but being 23 years old and fresh out of college, I feel like my inexperience is holding me back a little bit with regard to bringing in new business on my own. I know these exams are not easy and will take a few years to complete, but I think they will really help us differentiate ourselves and give me personally more knowledge and credibility.
I've done a lot of research on the CFA and CFP and know most of the requirements and main differences, but I would love some input on what I should do given each designation has different required years of experience and other requirements.
Some of my main questions: Which should I study first? When should I take the tests to be most efficient with my time? CFA first or CFP first? Anything else should I do?
My current stance is I'm definitely going to get my CFP because I think it's more relevant to our practice, but I also think having a CFA will be beneficial as we grow the book and bring on more HNW clients. Also, my firm will reimburse me for the CFP once I've been at the firm for two years (currently at 6 months). This is something to consider because from a cost perspective it might make more sense to take the CFA L1 and L2 before I start studying for the CFP.
I know WSO is mainly IB oriented and I'm expecting people to respond saying CFA>>>CFP, but I'd really appreciate some unbiased opinions and hear if anyone has experienced anything similar. Let me know what you think.
Thank you!
Would it be possible to do both? Given the timing of the exams and the amount of core small courses you need (or at least that is the case in Canada), I imagine you could get a lot of the CFP done in between the CFA exams. I don’t believe much of the curriculum will overlap, aside for some stuff in L2 and L3 on portfolio construction and investment policy statements.
As for how useful they are for you, it sounds like the CFP is better for your day to day. With that being said, in the long-term the CFA will be a better asset, in my opinion, for its brand name. Particularly if you want to be managing money and not only helping out with someone else’s book as a financial planner. Not that there is anything wrong with that.
Yes, I agree and that's definitely an option . I'd have to just plan it out right. Maybe L1, L2, CFP, then L3? Just going based off of when I can sit for th exams. Thanks for the input.
Is this what you want to do as a career? If so, CFP hands down.
I say this as someone who has done both. (although my CFP is currently lapsed for CE laziness reasons) While investing is sexy, your average client will see more added value from tax alpha than good investment calls. The CFP is also significantly easier. There's a fun fact that repeat takers of the of the CFP exam have a pass rate about 2/3 that of first time takers.
The CFA exams are a beast. 20% of people who begin the process ever end up getting it. It's great if you want to move from WM to AM, and 80% of my old team in product development for a firm you would have heard of had it, but its hit or miss in WM. (When I began my career in WM I once had a woman who insisted on talking to a CFP, and I was only then a CFA Charterholder, which was unacceptable to her)
Yes I could definitely see myself doing this as a career and that's my same feeling, but who knows. In 10 years I may decide I want to do something else and it may be nice to have my CFA if that happens. Funny you mentioned that, I also had a prospect that I didn't win the business b/c I didn't have my CFP. Anyways, thanks for the insight, definitely helpful.
The CFP Board is very good at marketing itself in the retail space. CFA Institute knows it doesn't have to, since most Charterholders are interfacing with other professionals. Thus, the CFP may actually have higher cachet among the ignorant masses while having your charter is much more prestigious in the industry.
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