Just curious if there were any Financial Advisors on this webiste with the CFA designation and what their thoughts were on it. I currently work at one of the big brokerages as a sales associate (i.e Merril, UBS) and thought I would pursue the CFA because I want to eventually become an Advisor. My office is very large with a lot of advisors and very few actually have a CFA. If people have any designation it is usually a CFP.
I was told by a career mentor that the CFP wasn’t very hard to get and if you really want to stand out and help yourself when you’re starting to build a book of business the CFA was the best option. Anyone have any thoughts/opinions?
You will not use about 90% of the stuff that you learn, and the useful 10% is covered in the much easier and more notorious CFP program. Granted, it’s interesting to be able to see how some of the statistics are derived, but that has limited usefulness when taking to clients.
You will never value a business or an option or a forward, so L2 is a complete waste of a year.
You will never trade an option or a forward, so a lot of L1 and L3 are wasted.
Remember too–any designation is only as useful as its notoriety. If none of your clients know what the CFA is, they won’t see any value in it. If you want some letters with recognition, go with CFP. If you want letters with no recognition (and probably no value either), go with AAMS or CRPC.
I’m a retail advisor as well &, like Greenman, have the CFA charter & the CPA. Also have the CFP.
~100% of clients know the CPA
~50% of clients know the CFP
~<10% of clients know the CFA
That being said, it’s huge respect in the finance world. I read an article estimating <2% of US financial advisors have the credential. You could arguee because it’s hard or because it’s worthless. I like to think it’s because it’s hard.
If you’re young you have no clue where you will be sitting in 10 or 20 years. Undoubtedly the credential won’t hurt your career. It is a huge committment though. I thought about quitting a couple times, but couldn’t find the nerve to. Don’t start it unless you’re going to finish it.
I should also add that I’m a CPA working in a tax practice. And I agree 100% with Chris 400 and Mike79.
@OP - are you a rookie FA? Just passed your 7 and “trying to figure it all out”? (Nothing wrong with that. I was in the same boat ten years ago.) Or are you an experienced vet, and know that retail FA is your thing? What’s your motivation for wanting more credentials?
@Infinity - a retail FA is a financial advisor who works in a retail shop. They may work in a bank (Wells Fargo) or a wirehouse (like Merrill Lynch, Edward Jones) or own their own firm (Greenman Financial Consultants). But they do investments for the general public.
Non-retail FAs would include people who work in Vanguard’s call center, people who work for a family office, or a HNW practice that’s not open to the public.
Thanks for the input guys much appreciated. I recently passed the series 7 and 66 and am defenitly “trying to figure it all out” and just curious how I can help myself be more successful. Seems like there is a high rate of failure for rookie FA’s and trying to differentiate myself.
I would suggest that you find a senior advisor who can be a mentor you can learn from. Someone who you really get along with, someone who is smart and understands that this is really about running a business, and not a book of business (typically referred to in the industry).
I worked as an Associate for three years before buying out my previous boss (an MD) client base and going out on my own. Get some work experience, both on the admin back office work and client facing in meetings (if possible), talking about investments and planning etc.
have a buddy who is an FA for EJ. been doing it for several years now. He seem to be doing well for himself. Managing several dozen millions. So he is like a PM? that is 90% of level 3 imo.
CFA is probably not for you. CFA is for the guys who work at the home office designing the model portfolios, doing security analysis, assigning buy/sell ratings, due diligence on mutual funds for your wrap program, etc.
You’re on the retail side, a.k.a. sales. CFP is more up your alley. You’ll get a broader education, and you’ll still learn enough about investments to speak educatedly to clients.
I agree with the above comment about teaming up with a senior advisor. Don’t go out on your own–that’s approximately a 99.99999% chance of failure. Team up with a senior. Be his sales assistant. Answer his phone. Get his coffee. Do his menial chores. Do all the crap that he doesn’t want to do. Eventually, you’ll move up and sit in his seat.
I’ve been a financial advisor for 16 years. I currently work in the private client area of retail. I love my job but I have come to a crossroads where if I want to move into the private bank, work with the UHNW, move over to pensions, etc, most of those jobs are requiring a CFP/CFA. Like your mentor said, if you want to stand out, go the CFA route. That’s the same advice I’ve received as well…
agree with jenks. CFA has far more clout in advancing your career. 99.8% of clients don’t care about your designations. only one out of several hundred have asked about what the CFA is. either the others know what it is, or they don’t care. i’m in low-end HNW PWM.
100% of future employers, partners and colleagues see the CFA as being the holy grail and 100% of future employers, partners and colleagues see the CFP as hacksaw. my experience is that the CFA is in very high demand while CFP is solely useful for insurance guys.
in canada, if you’re a cfp, you either work at a bank branch for nothing or you slang mutual funds only and do very little by way of your clients.
add to my subjective rant on the CFP versus CFA the fact that the CFP requires CE, which will amount to several hundred or a thousand in CE spending every year, and CFA is clearly the best value.
I disagree with this. I worked in a couple of wirehouses and FA firms before abandoning the idea and becoming a CPA. Very few, if any, of your future employers, partners, or colleagues will care about the CFA. Add to that, the CFP (hacksaw or not) is becoming more recognizable in both the world of advisors and clients. (Don’t believe me? Just ask Michael Kitces or Bob Veres, who wrote the Bible on financial planning and advisory.)
If you were entry-level in Brown Brother Harriman on the Super Duper Ultra High Net Worth desk, then I’d say CFA is for you. If you’re at Edward Jones or even Merrill Lynch, taking the CFA would be overkill. It’s like getting a Master’s in Mathematics when all you really need is College Algebra.
Look at the senior advisors at your firm. Look at your bosses. Any of them have the CFA? If not, then it will probably be useless to you.