CFA For Financial Advisors

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josh_16

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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?
 
If you’re a retail advisor, CFA is waaaay overkill. It’s like getting a masters in math, when all you need is college algebra. Better to do CFP.
FYI - I’m a retail advisor and I have the charter.
 
Greenman72 wrote:
If you’re a retail advisor, CFA is waaaay overkill. It’s like getting a masters in math, when all you need is college algebra. Better to do CFP.
FYI - I’m a retail advisor and I have the charter.
Click to expand...
Why do you think it is overkill to have the charter as a retail advisor?
 
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’m a hacksaw FA, and I continue to think about the value of the CFA vs. the CPA. I agree with Chris 400 comments above.
If you are working in the HNW to UHNW market, the CFA can be useful. However, I would suggest you complete the CFP first.
OP: what is your next move in your career, and what was your undergraduate degee in?
 
Retail FA work either for themselves or for a financial instituaion as follows:
- own your own practice and client base operating through a dealer or brokerage (owned by a bank) or insurance company etc…
- work at a local bank branch as a FA
- however it works in the U.S. - (i.e. RIA model)
 
okay….what other FA are there other than retail FA? How is that one different from retail FA?
 
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 FA’s 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.
 
Josh_16
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.
 
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