Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
CFA or CFP as a retirement transitional gig ?
Old 06-04-2016, 02:09 PM   #1
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
CFA or CFP as a retirement transitional gig ?

Anyone here look into becoming a CFP or CFA ? Kind of wondering if that might be a good "transitional gig" after Megacorp.

Not sure differences between CFP or CFA and which is harder/more desirable.

Bummer is 4 years of prior work experience - my current Megacorp job wouldn't qualify.

Appreciate any thoughts.

https://www.cfainstitute.org/communi...xperience.aspx
__________________

__________________
Delawaredave5 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-04-2016, 03:14 PM   #2
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
I am a CFP and my coworker is a CFA. There are other CFAs on the board that might weigh in as well.

The CFP took me a couple of years to complete, and is intended to be a comprehensive course on all aspects of financial planning, including insurance, estate, retirement, and investing. The test was fairly difficult for me, mostly because I didn't have a strong math foundation. The pass rate is around 50-60%, or it was when I took it.

The CFA is another bird entirely. Much rarer, and much, much harder. There are three tests, and the pass rate is quite low. There is a tremendous time commitment involved in studying for them. Most CFAs work in mutual funds and big investment firms, where lots of stock analysis is needed.

The coworker with hers is damn near brilliant, and had unlimited time at work to study, thanks to our boss (who did the same for me years ago for my CFP).

If you are interested in doing financial planning as a side gig in retirement or just for the education, the CFP is "enough". If you want a deep, deep dive into analysis, CFA may be more interesting. Both have 3 year apprenticeship requirements and continuing education to maintain your marks.

Holler if you have any other specific questions, I'm happy to help.
__________________

__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 06-04-2016, 04:01 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I am a cfa charterholder. It was very time consuming and difficult to obtain. Not the sort of thing you do for yuks. I managed to pass all 3 exams on the first try, but it is not uncommon for people to take 4 to 7 attempts to pass the 3 exams. I was working in the field and it still took me a solid 6 months of prep to get ready for each exam.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 06-04-2016, 04:18 PM   #4
Recycles dryer sheets
 
Join Date: May 2013
Location: The Villages
Posts: 87
CFP here. If you are going to set out a shingle as a CFP in your own practice, your primary job for the first few years will be sales and marketing, not financial planning.
__________________
Pbkmaine is online now   Reply With Quote
Old 06-04-2016, 05:38 PM   #5
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,041
Quote:
Originally Posted by Pbkmaine View Post
CFP here. If you are going to set out a shingle as a CFP in your own practice, your primary job for the first few years will be sales and marketing, not financial planning.
Exactly. You may as well stay at your regular job. Even if you work for a mega-corp, they will expect you do get clients, and work 60+ hours a week.

You are better off delivering newspapers.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 06-05-2016, 07:02 AM   #6
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Humble
Posts: 188
This really appealed to me also, until the DW who did technical sales for years schooled me. Her position was that there was a LOT of selling and not as much technical work. That cooled my ardor.
__________________
Turn_the_Page is offline   Reply With Quote
Old 06-05-2016, 08:32 AM   #7
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,796
I looked at it very briefly - but realized it sounded an awful lot like WORK.

I am choosing to spend my education/learning desire on learning Italian, instead.... No pressure to put it to use for money... but it could be useful in travel.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 06-05-2016, 11:33 AM   #8
Recycles dryer sheets
 
Join Date: Apr 2011
Location: Castro Valley
Posts: 400
I was originally thinking the same thing until i found out about the 3 year apprenticeship. Would probably never be able to get it off the ground in my mid 50s.
__________________
jkern is offline   Reply With Quote
Old 06-05-2016, 11:43 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,325
I started a graduate program in financial planning once and lasted literally one class. I asked the professor about the jobs the previous graduates had and most were in sales jobs, which is not my strong suit or area of interest.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 06-05-2016, 12:11 PM   #10
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 381
Like others I looked into it briefly. Had a former employee who went that route and opened his own business. But he spends more time doing people's taxes than financial planning. And as others have noted if you get employed by someone instead, it's more of a sales job.


Sent from my iPhone using Early Retirement Forum
__________________
big-papa is offline   Reply With Quote
Old 06-05-2016, 02:06 PM   #11
Recycles dryer sheets
 
Join Date: Jun 2011
Posts: 182
As a former CFP I surrendered my certification when I FIRE'd two years ago. I had mine for 30 years and originally got mine under the original five part program. No two day exam for me. It meant a lot to me over the years and will maintain that it was the best $900 (yes, that was the total cost in the early 1980's) that I will probably ever spend.

Would I want to do it now? I have to say no. The only person's finances that I truly care about are mine. There is so much more regulation and continuing education in the business that the idea of starting over just doesn't do it for me.
__________________
pjm-7 is offline   Reply With Quote
Old 06-05-2016, 02:28 PM   #12
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
pjm, did you have the blue book exams? The older guy who started our firm took it in the early 80's, I think, and talked about them.
Mine was the 10 hours over two days bit. Ugh.
I can't/won't do any sort of sales, so was fortunate that my entry into the business was with a very low pressure firm. Like we haven't had business cards for the last three years since we moved offices and chucked the old ones.
I really have to say that my own finances are always more interesting to me than anyone else's, but my favorite part of the job is helping folks organize when they are getting started (kids of clients). And the most humbling and sobering is for clients after a death in the family.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 06-05-2016, 03:50 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2015
Location: Beaverton
Posts: 285
Quote:
Originally Posted by jkern View Post
I was originally thinking the same thing until i found out about the 3 year apprenticeship. Would probably never be able to get it off the ground in my mid 50s.
+1
__________________
Bir48die is offline   Reply With Quote
Old 06-05-2016, 04:10 PM   #14
Recycles dryer sheets
 
Join Date: Jun 2011
Posts: 182
Sarah - Yes the tests in the early 80's were pencil and blue books. The original CFP program was written by old school CLU's, so the answer always had some take on whole life insurance. The tests were only given at a few locations (no computer based exams). For my first exam I had to drive almost five hours to Bozeman Montana as that was the closest testing site.
About a dozen years ago I had the chance to work with the CFP board to "test the test". We reviewed the questions and the subject matter for the comprehensive exam. The younger CFP's could not believe that everything was paper and pencil, and that the answers always revolved around whole life insurance.
__________________
pjm-7 is offline   Reply With Quote
Old 06-05-2016, 07:02 PM   #15
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Pjm, very cool! And yes, the whole life answers are long gone! Nowadays (or at least 2006-2007) it is heaviest on ethics. Thanks for "giving back" and working on the tests, us later ones appreciate the update! If not exactly the 10 hours!
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 06-05-2016, 07:17 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,418
I considered doing something like this back when I first FIREd. My plan was to become a "CFP for the people", advising and teaching people to invest in low cost indexes and learn how to manage their own money. I'd do this for a fixed fee, low enough to just cover costs. Luckily Sarah and Brewer and others slapped me and woke me up from my dreams of being a financial Robin Hood. It's not like I haven't had plenty to do over the last 10 years without saving the world.

Unless you are serious about wanting to do this as a living I would advise against it.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is online now   Reply With Quote
Old 06-05-2016, 08:59 PM   #17
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
Quote:
Originally Posted by Pbkmaine View Post
CFP here. If you are going to set out a shingle as a CFP in your own practice, your primary job for the first few years will be sales and marketing, not financial planning.
+1

I tried and failed as a financial planner from 2012-2014. Worked for 2 firms and tried a third time on my own.

The tough part is SELLING knowledge. Your first 100 clients would likely be people you already know... I am less comfortable selling to people I know- I prefer to be impersonal in certain aspects of the process.

If you choose to do the financial planning route, I would strongly suggest starting 5 years before you start- networking events, discussions with people you know and focus on building relationships with people you already know.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 06-05-2016, 09:30 PM   #18
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 354
Quote:
Originally Posted by Pbkmaine View Post
CFP here. If you are going to set out a shingle as a CFP in your own practice, your primary job for the first few years will be sales and marketing, not financial planning.
+1

This recent episode of the Radical Personal Finance podcast has some useful insider information about what the real life of an early-career financial planner is like. Also worth exploring the archives for similar episodes (I recall there are a few):

https://radicalpersonalfinance.com/334/
__________________
lhamo is offline   Reply With Quote
Old 06-06-2016, 10:15 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,121
Quote:
Originally Posted by brewer12345 View Post
I am a cfa charterholder. It was very time consuming and difficult to obtain. Not the sort of thing you do for yuks. I managed to pass all 3 exams on the first try, but it is not uncommon for people to take 4 to 7 attempts to pass the 3 exams. I was working in the field and it still took me a solid 6 months of prep to get ready for each exam.
Likewise and agree. Not something that most people would say is fun.
__________________
Danmar is offline   Reply With Quote
Old 06-06-2016, 10:40 AM   #20
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Quote:
Originally Posted by pjm-7 View Post
Sarah - Yes the tests in the early 80's were pencil and blue books. The original CFP program was written by old school CLU's, so the answer always had some take on whole life insurance. The tests were only given at a few locations (no computer based exams). For my first exam I had to drive almost five hours to Bozeman Montana as that was the closest testing site.
About a dozen years ago I had the chance to work with the CFP board to "test the test". We reviewed the questions and the subject matter for the comprehensive exam. The younger CFP's could not believe that everything was paper and pencil, and that the answers always revolved around whole life insurance.

Ah...the bluebook! In law school, most classes have only one comprehensive exam at the end of the class and they are usually essay exams. Most of the young kids will use laptop computers to do the exams and I did this for the Fall term and hated it. I can type fairly quick, but there is added stress of the possibility of computer failure, lots of clicking of keys (with 40+ student test takers in the room) and generally it's a miserable experience. However, the do allow students to "bluebook" the exam if they wish...basically you sit in another exam room and write out the answers. I did that this semester and it was GREAT! I took 4 exams and in all of them, it was the same 6 people taking the exam. Quiet, relaxed, less stressful. Of course, hand cramps did come into play a couple of times...but I think that's a good thing...that means you are putting out a lot of information. Also, my grades this semester have been better although that could be from getting used to the law school way of thinking and test taking.

OK..sorry about the off topic diatribe...back to the normally scheduled thread topic.

I considered doing something that the OP is contemplating, but after talking to a few folks, it sounded like law school would be easier!
__________________

__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1 year into retirement and going to try a part time consulting gig jabbahop Life after FIRE 24 03-31-2016 05:25 PM
Index funds (lazy portfolios) vs CFA's alsante1 Hi, I am... 8 11-11-2013 07:13 AM
Just got another easy gig. newguy88 Other topics 4 10-23-2007 04:48 AM
Passed Out At Gig TromboneAl Health and Early Retirement 17 04-02-2007 12:47 AM
4 days until ER and hey I just got a great part time gig! newguy88 Life after FIRE 6 12-19-2006 10:21 AM

 

 
All times are GMT -6. The time now is 09:37 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.