Individuals with the Certified Financial Planner (CFP) designation enjoy an above-average salary range as well as promising current and future job availability. The salary range for a certified financial planner should be viewed in a broad context including experience, length of time in the field, and geographic location.

As with many professions, the average income varies. This overview article offers current national and regional average salaries for a certified financial planner.

• Requirements for Certified Financial Planners
• What is the Best Financial Planning Company?
• How does a Certified Financial Planner Make Money?
• How much do the top Financial Advisors Make?
• Why do most Financial Advisors fail?
• How do I Choose a Financial Planner?
• What is the best Financial Advisor Company to Work for?
• Can Financial Advisors steal your Money?

Requirements for Certified Financial Planners

To put the salary data into context, it’s helpful to explore the minimum credentials for this profession. The CFP designation is achieved through an individual’s education, work experience, and examination scores. This designation is governed by the CFP Board.

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A minimum of a bachelor’s degree, specialized financial planning coursework, and three years of experience are prerequisites to becoming a CFP. After meeting the minimum criteria, the CFP candidate must take the CFP certification examination, which measures the applicant’s proficiency in financial planning scenarios and professional ethics.

Experience Affects CFP Salary

The national salaries of CFPs are largely impacted by an individual’s level of experience. According to payscale.com, a crowd-sourced salary information provider, an entry-level CFP with one to four years of experience averages approximately $60,011 per year.

At the other end of the spectrum, the late-career CFP with more than 20 years of experience garners an average income of $95,615. (The sample size of this data set is in the 200–400 range for each cohort group.)

The CFP is one of the fastest-growing and highly compensated fields, with employment opportunities expected to grow by 4% from 2019 to 2029. The primary driver of growth for CFP employment is the aging population.

Large numbers of baby boomers are expected to approach retirement in the next decade, which will likely create a need for additional planning advice from financial advisors. The Bureau of Labor Statistics reports that during the 2019 to 2029 time period, the field can expect to see 11,600 new workers.

When combining above-average salaries with high levels of job satisfaction and growing job availability, the certified financial planner is a standout career path for the financially-minded individual. The CFP Board website provides in-depth coverage of the certified financial planner designation and instructions regarding entry into the profession.

What is the Best Financial Planning Company?

Choosing a financial advisory firm can be a difficult task, as there are thousands to wade through. Many have specific strengths and offer different ways to invest one’s hard-earned money.

It’s always worth doing your research to know which suits your needs and risks best, however, often choosing some of the largest financial advisory firms can be a good option. They have proven track records, a variety of products, and significant amounts of transparency.

The following five financial advisory firms operate with more than $1 trillion in total assets under management (AUM): BlackRock, Vanguard, Fidelity, State Street Global Advisors, and J.P Morgan Asset Management. Each of these companies is one of the best in the industry for different reasons, whether it be low fees and innovation, more than a century of dedicated financial management, or great customer satisfaction.

American investors can choose from thousands of financial advisory firms. The market is top-heavy, which makes sense; a well-known and well-respected name goes a long way in securing assets from families and businesses.

It’s no accident that these companies are the top dogs, they have worked hard to become so, and have provided consistent positive returns for investors. As such, potential investors can find reasons to like each.

These firms are so large that they offer a multitude of services for all types of clients. Some also provide a broad exposure to the market through the various mutual funds and exchange-traded funds (ETFs) they offer. Most investors will be able to find what suits their investment needs within the offerings of each of the firms.

1. BlackRock

BlackRock is the largest investment firm in the world. It manages $7.34 trillion as of June 30, 2019. The company has been a proponent of exchange traded funds and it has gained popularity through its iShares funds that make up more than 25% of its AUM. The company is a powerhouse, operating in 30 countries with clients in 100 countries.

2. Vanguard

Vanguard has been a revelation in the investment management world, especially since the turn of the century. Much like Walmart in the retail sector, Vanguard became king of the hill through cheap prices and a huge variety of offerings. The company is famous for its low expense ratios on funds and passive investment management.

With $6.3 trillion in total AUM as of Jan. 31, 2020, Vanguard is the second-largest advisory firm. The company lives by the mantra of lower prices and allows investors to keep more of their returns, and customers have responded by flocking to Vanguard in droves.

3. Fidelity Investments

Fidelity Investments earned its name in the brokerage and mutual fund provider spaces. It’s fitting that Fidelity—a word meaning loyalty, support, and faithfulness—is one of the most highly-rated investment advisory firms in terms of customer satisfaction and online support. The fund manages $2.96 trillion in assets and offers a variety of mutual funds for the benefit of all types of investors.

4. State Street Global Advisors

State Street manages $2.95 trillion in assets as of Sept. 30, 2019. State Street offers investment management services to a broad swath of clients, including retail investors. It was one of the first proponents of exchange-traded funds and manages one of the most, if not the most, popular exchange-traded fund: the SPDR S&P 500 ETF (SPY).

This exchange-traded fund tracks the S&P 500. State Street manages many funds under the SPDR brand name that focus on a variety of sectors, allowing investors to gain access to many areas of the market.

5. J.P. Morgan Asset Management

Founded by the legendary John Pierpont Morgan, J.P. Morgan & Co.—now JPMorgan Chase & Co. (JPM)—is perhaps the most important private financial institution in U.S. history.

The firm is the largest bank in the U.S. and one of the biggest financial conglomerates in the world. It’s CEO, Jamie Dimon is one of the most celebrated financial professionals in the world, often found giving advice to the President and other world leaders.

It’s no surprise that J.P. Morgan is among the top five largest financial advisory firms, given its track record and name recognition. Among its targeted advisory groups are other financial institutions, governments, pensions, businesses, and individuals. Its asset management division oversees $1.9 trillion in assets as of March 31, 2020.

How does a Certified Financial Planner Make Money?

Before you access a CFP’s skill set, it helps to know how much they charge – and how they make their money.

Typically, CFPs work on a “fee-only” or “commission-only” basis, or a hybrid. With fee-only, expect to pay between $125 and $350 an hour. Yes, that’s a lot — but the CFP (and combination CFP/CPA) can make and save you a lot of money. Here’s the rub: You may need a connection to get in, as fee-only CFPs often reserve services for wealthy clients.

In the commission-only situation, the CFP makes money on the products they sell. Commissions might range from 0.5% – 1.25% on products that include insurance, mutual funds, and annuities.

That’s not at all suspicious – and CFP ethics rules offer peace of mind. But ask the CFP first thing if they have business relationships that could pose conflicts of interest.

If you want total impartiality, you can find fee-only CFPs (along with standard financial advisors) through the National Association of Personal Financial Advisors.

You can also look through Facet Wealth, an online financial planning firm. They charge between $1,200/year (which is $100/month) – $6,000/year (which is $500/month) – and most clients fall in the middle of that range. That’s pretty cheap compared to their competition.

And you don’t need to worry about the commission-only fee with Facet Wealth. All of their CFPs do not work for commissions.

If you contact a CFP by word of mouth, ask the person who referred you how much they pay versus the returns they see. Another way to find a CFP is to consult the CFP Board’s website.

If you’re considering a CFP, here’s what you need to do:

Research your options through reliable portals

As mentioned above, you can search the  CPA Board and NAPFA to find viable candidates.

The Paladin Registry (which works in partnership with Money Under 30) also lists top CFPs and advisors in your area.

Ask yourself whether you can afford it

Fee-only CFPs are expensive compared to their financial advisor counterparts, though CFPs will have broader skill sets and a professional commitment to continuing education.

Check out their other qualifications

Especially if the CFP doubles as a CPA, your tax strategies as an investor and a taxpayer become more integrated and can lead to more robust returns on both sides.

Match strategies

Though CFPs will broaden your knowledge base, think twice if their objectives don’t match yours.

Ask questions, trust instincts

Don’t let prestigious titles mesmerize you. While CFPs are held to the highest standards of conduct, ethics, and knowledge, you make the call. Meeting face to face lets your intuition and intelligence work in tandem. Someone else’s go-to guy or gal may not be the one you’ll want to go with.

Yes, CFPs are worth the investment — a fact I can attest to because I use one — but not just anyone. If he were to retire, finding a replacement would be hard because, in finances, as well as in life, it’s all about relationships: The right CFP literally has to be the right person.

How much do the top Financial Advisors Make?

According to the U.S. Bureau of Labor Statistics (BLS), as of May 2017 the median average for a personal financial advisor is $90,460. Those on the higher end of the salary range, who have done this work for a long time or work in the right industry or city, could find themselves making over $200,000 a year.

Top Financial Advisor Salary by State

Many of the states with the highest financial advisor salaries contain or are close to large cities. The BLS reported that as of May 2017, the highest annual mean wage for financial advisors came from the state of Wall Street, New York with a mean wage of $166,100.

Not too far behind is California at $141,100, followed by Connecticut at $137,120. At No. 4 is District of Columbia with $135,770, with Maine in 5th with $134,380.

National Average Financial Advisor Salary and Statistics

The range of salaries is extremely wide. The city an advisor works in plays a large role in this. The aforementioned states have high  annual mean wages, but the same BLS report shows the mean in non-metropolitan areas of southeast Nebraska is $52,530.

Some statistics on financial advisor salaries as of May 2017:

• Mean annual salary: $124,140
• Wages for the lowest 10th percentile: $40,800
• Advanced range salaries (75th percentile): $162,680
• Wages for the highest 10th percentile: over $208,000
• Number of jobs: 200,920
• Job outlook: 15% increase from 2016-2026

Why do most Financial Advisors fail?

Up to 90% of financial advisors fail in their careers and the amount of certified financial planners around the nation declines each year for reasons that include a lack of clients and proper training. Some of these failures stem from the economic problems that people around the nation are suffering and the competitiveness that comes with working in financial planning.

Most financial planners earn a majority of their money off commission, and fewer people are trading daily. With fewer people having the money to invest, and without trading stocks and funds, it’s harder for up-and-coming planners to make money.

The people who have money are already working with financial planners with whom they have long-standing relationships, and people with new money want experienced planners they feel they can trust. This leaves new graduates on the outside.

The number of financial planners working independently has decreased significantly. With the increasing number of students with student loans, it’s hard for young graduates to start their own firms without credit, experience and financial stability. You need money to make money in financial planning, and new graduates have a hard time finding money and clients.

The training programs available at large investment firms aren’t as great as they used to be. The experienced planners that are making money don’t want to share trade secrets and tips with the hungry graduates trying to get into the field; they want to keep the clients and commission for themselves.

Those who aren’t making their clients satisfactory returns on their investments lose clients, and you can’t get new clients without a successful portfolio.

How do I Choose a Financial Planner?

The challenge, like looking for the right toothpaste brand or a shampoo, is deciding what kind of advisor to work with. You have probably stood in the grocery store before wondering: Should I get the one that specializes in fighting enamel erosion or teeth whitening? Am I looking to tame my oily hair or give it fuller body?

Most of us know our teeth and hair like the back of our hands. But deciphering what type of financial advisor to hire can be more challenging.

It isn’t an impossible choice, of course. Plenty of people have picked financial advisers and lived to tell about it – but if you want a solid working relationship that helps you make smart financial decisions, it helps to understand what you’re getting into and why you’re even talking to an advisor in the first place.

The following are the five steps to choosing a financial advisor:

1. Do you need a financial advisor?

Obviously, not everyone is ready to hire a financial advisor. If you’re lurching paycheck to paycheck, and you want to start saving, that’s great, and you should – but generally, a financial advisor won’t be interested in working with you, as harsh as that sounds.

They do make money, after all, from their clients who are making money. If you’re only able to sock away $30 per week or month into a savings account, because of what you’ll bring to the table and what they’ll take away from it in fees, neither you or the financial advisor can afford to work together.

So when is it time? Here’s a good rule of thumb: “Once someone is to the point that they have a stable and steady income and have the ability to save at least 20 percent of their annual income, it might be time to consider a financial advisor,” says Nicole Rutledge Regilio, a certified financial planner with Resource Consulting Group in Orlando, Fla.

But even if you aren’t there yet, financial advisory firms and online services can provide assistance. Websites such as the garrettplanningnetwork.com and napfa.org (The National Association of Personal Financial Advisors) can hook you up with a financial planner who works with the middle class.

Likewise, robo advisors can be a great option for new investors. With average annual fees of only 0.25 percent (that’s $25 per $10,000 invested, in addition to any fees charged by the investments you use) and some very low account minimums, robo advisors are a cost effective way to start investing.

2. What type of financial advisor to get

The financial industry has two sets of compliances that advisers follow called the suitability standard or the fiduciary standard. The fiduciary standard is when your financial advisor is legally bound to act in your best interest. 

Fiduciary advisors must put their clients’ interests before their own. They’re also referred to as fee-only advisors because they don’t accept commissions on the investments they recommend.

Note: This is different from “fee-based” advisors, who charge fees and commissions. You’ll typically pay a fiduciary a quarterly fee that’s calculated as a percentage of the assets your advisor is managing.

Suitability standard. As financial advisers who follow the fiduciary standard will gleefully tell you, advisers who follow the suitability standard are only legally required to make sure the investments are suitable for you – they aren’t required to be your best option.

A financial advisor following the suitability standard works on commission, so they may be incentivized to put you into products that line their pocket more than yours.

Fiduciary advisers are understandably proud of their distinction, but some of them make it sound as if you go with someone who works on commission, you might as well hire a crook to manage your money. But brokers following the suitability standard aren’t out to get you.

It’s true they may steer you toward an investment that their employer (your brokerage firm) is touting, but presumably, he or she wants to keep you as a happy client for years to come.

“I don’t believe the fiduciary standard itself protects people from harm,” says Kevin Meehan, the regional president of the Chicago branch of Wealth Enhancement Group, an independent financial planning and advisory firm. And just to be clear, Meehan’s company is dually registered to provide service under a fiduciary or suitability standard.

“The integrity of the advisor and the organization is your ultimate protection,” he says.

A good credential to look for is the CFP, or certified financial planner. CFPs are advisors who have met extra education and experience requirements to better serve their clients’ holistic financial planning needs. They’re also held to a “rigorous ethical standard” by the CFP Board.

3. Ask for referrals from friends or Google

As for finding a CFP – or any advisor – you can certainly pull out the phone book or search the Internet, but a good course of action is to start with recommendations from friends, family or colleagues. Ask people with a similar financial situation or goals to yours who they use. Takedown a few names, then head back to good ol’ Google to check the advisor out.

4. Check the advisor’s credentials

Verify your advisor’s credentials on brokercheck.com or adviserinfo.sec.gov. Both are free tools that provide the background and experience of individual advisors and firms, including robo advisors.

Most importantly, these sites will tell you about any disciplinary action the advisor has received. The CFP Board also maintains a list of disciplined CFPs by state on their website.

5. Interview multiple advisors

Finally, shop around. Advisors recognize you may talk to a number of professionals, and you should.

When you do talk to advisors, ask them to “describe their client experience,” says Andrew Crowell, vice chairman of D.A. Davidson & Co. Wealth Management in Los Angeles. “How frequently and how will they communicate with you? How do they measure ‘success’ in a client relationship? Do you need to fit into their model, or are they able to customize an approach to your individual preferences and needs?”

What is the best Financial Advisor Company to Work for?

Looking for a great career? Why not consider going into the financial services industry? If you like a challenge, then this field might be the one for you.

Working in this sector can also be very rewarding—both on a personal level and from a financial perspective. In fact, depending on the position and your years of experience, the earning potential can be unlimited.

Most financial advisors have an undergraduate degree in accounting, finance, economics, math, or business. Some may have a graduate degree and may also take specific courses if they choose to specialize in a certain discipline such as estate planning, risk management, tax preparation, or portfolio management.

Some advisors may also seek out special designations including certified financial planner (CFP), certified public accountant (CPA), among others.

Salary and Job Outlook

According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for personal financial advisors was $87,850 in 2018. The top 10% in this field earned more than $208,000, while the lowest 10% earned less than $42,950. Financial advisors are also likely to earn bonuses, which are not included in these figures.

The BLS reported that there were 271,700 jobs in this field in 2018. Prospects for employment in the field are positive. In fact, the industry is expected to grow faster than other occupations by at least 7% for the 10-year period between 2018 to 2028. This growth is primarily due to an aging population that will require more financial planning services.

So where should you work? If you’re looking for a good place to start, consider joining a major firm. The best company reflects your personal preferences. Although the financial compensation may not be as high, retail banks are also great places to get a good start on your career as a financial advisor.

A self-starter who likes having the independence to call his or her own shots may fit best at a place like Raymond James (RJF), which offers advisors several types of affiliation. Or perhaps you’re looking for the advantages that come with working at one of the big-name firms like Fidelity Investments or Charles Schwab (SCHW).

If you want to be free to choose when and how you work, you may have some success working independently. But keep in mind, accomplishing this takes some time. This option may be better after you’ve amassed a few years of experience under your belt. That’s because you’ll need to build up your reputation as well as your client base.

Questions to Ask Yourself

How do you choose? Lots of research, interviews with employees, and some soul-searching. Ask yourself:

• What type of environment do you prefer—casual, corporate?
• Do you like flying solo or do you prefer or the hustle and bustle of a big firm?
• Where do you want to be located geographically?
• What type of clients are you interested in serving?
• What type of work would you like to do?
• What type of services will you offer?                       

The Fortune List

Each year, Fortune puts out its list of the 100 Best Companies to Work For—a well-regarded survey that looks at factors like the credibility of a firm’s management, employee job satisfaction, and workforce camaraderie.

Many financial services firms, investment companies, and insurance companies make the grade and may offer ideas about the best places for financial advisors to work.

The following are the finance sector’s top 10 companies listed in order of their rank on the 2020 list: 

• Edward Jones in seventh place
• American Express in ninth place
• Baird in 13th place
• Pinnacle Financial Partners in 14th place
• Veterans United Home Loans in 17th place
• Navy Federal Credit Union in 19th place
• Plante Moran in 21st place
• Capital One Financial in 24th place
• Quicken Loans in 29th place
• Allianz Life in 33rd place

Job seekers looking for a financial advisor position have lots of factors to sift through. Remember that many of the large financial services firms have offices nationwide and that locations may offer employees a different work environment and benefits.

Make sure you do your homework. Speak with current and, if possible, former employees about their experiences. Investigate work practices and research any ethical violations.

Additionally, do some background research on fee structures and corporate culture. In the end, what is the best company for a financial advisor? It’s the one that matches up with your skillset and personal preferences.

Can Financial Advisors steal your Money?

Financial advisor theft comes in a wide range of different forms. In some cases, the fraud is incredibly complex, involving churning schemes, funds being routed through multiple different accounts, or perhaps even fake documents.

In other cases, financial advisor theft is flagrant, involving the forging of a customer’s signature or the outright conversion (theft) of funds.

If you have been the victim of financial advisor theft, it is normal to feel stressed out and overwhelmed by your situation. Becoming a victim is not only frustrating and emotionally distressing, but it can be financially devastating.

In many cases, investors do not know where to turn or what to do to get their money back.

What to do if you suspect your financial advisor of stealing money

Preserve Documents, Gather Relevant Evidence

If you were the victim of financial advisor theft, it is imperative that you preserve all of the records and documents that you have that are related to your relationship with your financial advisor and their member firm. Among other things, you should be sure to save:

• All of the account statements you can find;
• Any customer agreement or other documents that you have signed;
• The marketing materials that you have received from the financial advisor or their member firm;
• All correspondences with your financial advisor, including any written letters, e-mails, text messages, or recordings; and
• Any contemporaneous notes that you took during conversations or meetings with your financial advisor.

Ultimately, the more information you have in your possession, the better off you will be during the claims process. An experienced investor rights attorney will be able to review these documents.

With this information in hand, your attorney can determine what specific legal options are available to you and what you need to do to file a lawsuit or a legal claim to get your money back.

Review Your Customer Agreement With Your Financial Advisor

When you first started working with your financial advisor, you likely signed a customer agreement. You need to review the terms of this agreement. If you no longer have access to the agreement, you should request a copy from your financial advisor’s member firm.

Notably, the overwhelming majority of modern financial advisor agreements contain mandatory arbitration provisions. In most cases of financial advisor misconduct, investors must seek compensation through the FINRA arbitration process, instead of through securities litigation. Though, there are certainly some exceptions to this general rule.

Your Financial Advisor’s Firm May Be Legally Liable for Your Losses

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. 

Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives. In addition, several Financial Industry Regulatory Authority (FINRA) regulations require firms to proactively detect and prevent financial advisor fraud and abuse.

If your firm’s failure to supervise your financial advisor has resulted in you sustaining investment losses, then that firm may be held legally responsible for your damages.

To be clear, the duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors. This includes:

• Careful screening and comprehensive background checks during the hiring process;
• Regular monitoring of correspondence between financial advisors and investors;
• Consistent review of a customer account records and customer transactions; and
• Immediate and thorough investigation of any and all indications of misconduct.

Certainly, the financial advisor that steals money from a customer should be held legally liable. However, their member firm shares just as much responsibility for the fraud. In many cases, financial advisor theft could have been prevented, if only the investment firm had properly supervised the representative.

Get Guidance From an Investor Rights Attorney

You should not go through the investment fraud claims process on your own. As soon as you suspect a problem, you should reach out to an experienced financial fraud attorney. You have limited time to take action to get your money back.

Read Also: Do you Really Need a Financial Advisor?

Your attorney will be able to tell you exactly what you should do next. Financial theft cases are unique: It is important to work with an attorney who can review the specific facts of your case.

As a general rule, your attorney may start by helping you raise the issue with the compliance department at your financial advisor’s company. There are many cases in which raising the issue can help to facilitate a relatively quick settlement.

That being said, there are also many cases in which investors must escalate the issue to get the full compensation that they are owed. Your attorney can determine if informal negotiation, FINRA mediation, FINRA arbitration, or securities litigation is the best path to get you a full financial recovery.