CFA vs. PFP

[krazykhoja]

I'm debating trying to get either my CFA or PFP designation but am not sure which to go with.

I have searched and found some information but its always better to get information from people that have experience it.

I know there are advantages/disadvantages to both but I was wondering from people that have done either/both what they thought of them.

How long did it take you to get either designation and what sort of salary are you looking at afterwards (I know that depends on the job you end up with and the company...so if you want to maybe say what the position is and the salary you recieve that would be helpful also).

Any advice if one is preferred over another, or just advice in general pertaining to either/both designations.

Thanks!!

[Stephen81]

How much have you researched both of these? Because there really isn't a ton they have in common?

What are your career ambitions? Current schooling?

[l/l/rX]

do you even know what a pfp/ cfp is? The cfa in comparison to the pfp/cfp is like black and white dude.

The CFP i believe you have a year to complete like the CSC. The test(s) I think there's one or 2 of them are like an hour long. Where as your CFA tests, there are 3 of them at 6 hours long, each.

the cfp you deal with personal planning, to name a few: financial planning, insurance planning, estate planning, retirement planning, etc etc.

cfa you're basically doing analyst stuff, investment mgmt and financial analysis, basically you study accounting stuff, econ, portfolio mgmt and so on.

Have you've looked into the hours financial analysts put in compared to people who have cfp's? For you to base this job off of how much a cfa gets paid in comparison to someone who has a cfp, again that depends on how hard you want to work, and how many hours a day you want to put in, and what kind of life you want to live.

Im pretty sure you didnt do enough research...

[MintRacer]

CFP = one pre qual 4hrs, final 6hrs

[s2k_boi]

Originally posted by MintRacer
CFP = one pre qual 4hrs, final 6hrs

Not quite sure where you got the pre qual from. But ... attached is a link to CFP qualifciations / information

http://www.fpsccanada.org/students/cfp_exam_qualifying

But, to the OP.... these two are pretty different designations as stated from multiple people already. You should probably state your background / career goals to give us better understanding on which direction maybe better for you.

[Mckenzie]

Originally posted by l/l/rX
do you even know what a pfp/ cfp is? The cfa in comparison to the pfp/cfp is like black and white dude.

The CFP i believe you have a year to complete like the CSC. The test(s) I think there's one or 2 of them are like an hour long. Where as your CFA tests, there are 3 of them at 6 hours long, each.

the cfp you deal with personal planning, to name a few: financial planning, insurance planning, estate planning, retirement planning, etc etc.

cfa you're basically doing analyst stuff, investment mgmt and financial analysis, basically you study accounting stuff, econ, portfolio mgmt and so on.

Have you've looked into the hours financial analysts put in compared to people who have cfp's? For you to base this job off of how much a cfa gets paid in comparison to someone who has a cfp, again that depends on how hard you want to work, and how many hours a day you want to put in, and what kind of life you want to live.

Im pretty sure you didnt do enough research...

:werd: x 100

No comparison here. If you want to go into CORPORATE FINANCE, CFA is the way to go, if you are smart enough to pass the exams.

PERSONAL finance will be your CFP....investment advisor type stuff you would see at a brokerage or bank. Way less time commitment too.

[91_Integz]

The CFA will open WAY more doors than the CFP will. CFP is good for personal finance, just like Mckenzie has stated. The CFA will allow you to do everything the CFP can, plus a helluva lot more.

That said, the CFA is much harder to get, and it takes alot of discipline and effort to pass the exams.

You can't really compare the designations, because the CFA is ALOT more intense, and is recognized worldwide.

[krazykhoja]

I know the two designations are not similar to each other, I didnt specify in my post they were...if it came across that way it isn't what my intention was.

I know the path to get each designation is different as is the hours each job has and the different career opportunities.

I am just wanting to try to get an overview on what people who have done either designation have to say about them, so the hours put in for exams, what jobs are available, whether they have advice to people who want to pursue either designation.

I guess I should have posted maybe more a of a background on myself rather than just asking the question.

My background: Econ degree from UofC graduated this past April. I am currently working at a bank (teller/back office work) and have been here for approx 3.5 years. I do therefore have financial knowledge which I think would be beneficial. However in terms of my career goal this is where I am not sure and where this thread comes in. Besides the obvious (good job, security, salary), I do like to help people (from my experience in the bank). Whether this be trying to find ways for them to maximze returns or save money on expenses. To me each person is in essence a puzzle and you need to find the right pieces to solve it, what works for one person doesn't necessarily work for another. However, even though I do like to help indiviudals, I am not opposed to also trying to help corporations.


To clarify a bit more:

To those that have done a CFA or CFP what did you think about the hours needed to study for/the ease of the exams.

What job do you currently have and what are the pros/cons of the job (assuming the designation helped you get this job)

Any advice on whether to pursue one or the other (either hours, salary wise, stress level --> I know this is heavily dependent on many other factors as well, but even just a bit of advice would be great).

Hopefully this clarifies the information I am looking for a bit more.

[Mckenzie]

Corporate finance / CFA jobs are typically high stress, high burnout, cut throat long hour jobs but can lead to immense wealth and success, typically at the cost of your health and soul.

People I see doing more financial planning type stuff have to put in more years to become successful, but are typically happier, less stressed and still very well off at the end of the day.

I'm looking at getting into private equity / venture capital at some point, which a CFP will not help me do. I've done my CA and will be writing level 1 CFA in December, both of which will be excellent back grounds for those roles or other roles that will open up those doors to me. With your econ degree and a bit of studying, you should be able to pass CFA level 1 no problem.

EDIT:
If you are more people oriented and don't want to be worked into the ground a CFP route would be good for you I think. However if you can hack it, a CFA has way more credential value and will absolutely command more compensation. The CA institute's salary survey came out last month and the CA-CFA designations in combination were the highest earning combo, far ahead of the CA-CFP combo.

[l/l/rX]

IMHO if you go the CFP route I think it'd also be good to match it up with a CSC. If you do stick with the bank do your CSC (or IFIC) first then CFP.

Cause' right now at your position teller/ back office, your next step up is FSR, then FA. FSR you can start dealing with mutual funds, then FA is when your CFP comes in handy. I'm pretty sure they won't skip you a few levels to FA without any of the above even if you do have a degree.

[sk8r3124]

I am doing my second write of the CFA level I exam on Dec 5, if you decide to go this route, make sure you are serious and dedicated about it. If you don't prepare substantially, this program will eat you alive.

[syeve]

I only really know one CFA, he is super smart, not just semi-smart. The world is basically his oyster, he has recruiters calling him all the time.

You better have your shit together, my buddy laughed his way through a Bcomm with like a 3.9 and studies his ass of for his CFA.

[urban.one]

Ten years ago, starting the CFA program was a great tool to use to get your foot in the door into research, money management, or even investment banking. Today, theres too many people starting the program and it doesnt distinguish you from the crowd at all.

Relevant work experience is more important as well as revelant skills and knowledge.

Checkout analystforum.com for a forum full of aspiring CFAs. Theres quite a bit of Canadians on there as well.

Take a look at commercial banking. It might be an easier path for you to get on to.


Originally posted by krazykhoja

My background: Econ degree from UofC graduated this past April. I am currently working at a bank (teller/back office work) and have been here for approx 3.5 years. I do therefore have financial knowledge which I think would be beneficial. However in terms of my career goal this is where I am not sure and where this thread comes in. Besides the obvious (good job, security, salary), I do like to help people (from my experience in the bank). Whether this be trying to find ways for them to maximze returns or save money on expenses. To me each person is in essence a puzzle and you need to find the right pieces to solve it, what works for one person doesn't necessarily work for another. However, even though I do like to help indiviudals, I am not opposed to also trying to help corporations.


Even for someone with a CA, relevant experience might be more important than completing any levels of the CFA. It depends what area you specialize in and the types of clients and industry you are in.

Contacts are also important and any relationship you could leverage into future business for any potential employers.


Originally posted by Mckenzie
Corporate finance / CFA jobs are typically high stress, high burnout, cut throat long hour jobs but can lead to immense wealth and success, typically at the cost of your health and soul.

People I see doing more financial planning type stuff have to put in more years to become successful, but are typically happier, less stressed and still very well off at the end of the day.

I'm looking at getting into private equity / venture capital at some point, which a CFP will not help me do. I've done my CA and will be writing level 1 CFA in December, both of which will be excellent back grounds for those roles or other roles that will open up those doors to me. With your econ degree and a bit of studying, you should be able to pass CFA level 1 no problem.

EDIT:
If you are more people oriented and don't want to be worked into the ground a CFP route would be good for you I think. However if you can hack it, a CFA has way more credential value and will absolutely command more compensation. The CA institute's salary survey came out last month and the CA-CFA designations in combination were the highest earning combo, far ahead of the CA-CFP combo.

[Criticull]

CFA is all about time. If you put in the hours you can pass, but if you don't you'll get smoked in the face.

[.civictyper.]

CFA is the gold standard for investment professionals, and is a very serious commitment.

I am writing level 1 on Dec 5th.. it has been a long 5 months of studying so far and is getting worse.

Each exam requires anywhere from 250 - 350 hours of self study depending on your experience and educational background, there is also a work experience component that must be met.

You should try and attend a CFA info session if you are interested.

If you are seriously thinking about doing it, I would recommend getting your books by December to start studying for the June sitting...

Good luck!

[Mckenzie]

Originally posted by urban.one


Even for someone with a CA, relevant experience might be more important than completing any levels of the CFA. It depends what area you specialize in and the types of clients and industry you are in.

Contacts are also important and any relationship you could leverage into future business for any potential employers.



I would agree, however I have seen the requirements of all investment banking, analyst, portfolio management and other finance related jobs for the past 3 months and the majority of them require at least a CFA level 1. Regardless of the work experience, it may just allow you to get your foot in the door for an interview, which is key to showing off your personality and personal skills, which is impossible to do on a resume. (but obviously means nothing compared to relevant work experience).

[G-Suede]

Originally posted by urban.one
Today, theres too many people starting the program and it doesnt distinguish you from the crowd at all.

Checkout analystforum.com for a forum full of aspiring CFAs. Theres quite a bit of Canadians on there as well.

Starting the program means fuck all - it's only the finishing part that matters, and that my fine fellow is what will distinguish someone from the crowd.

Again, apsiring means very little other than having enrolled. I'm an aspiring Doctor, but until I walk the stage and receive the degree I'm just another nobody that aspires to be a Doctor.

Earning a CFA is hard work and absolutely requires relevant work experience, meaning you won't be certified until you have met all of the requirements....otherwise bye-bye.

When a job competition states "must haves" and CFA is listed guess what that means...you need a CFA not a CA and work experience.

[Mckenzie]

Originally posted by G-Suede


Starting the program means fuck all - it's only the finishing part that matters, and that my fine fellow is what will distinguish someone from the crowd. Again, apsiring means very little other than having enrolled. Earning a CFA is hard work and absolutely requires relevant work experience, meaning you won't be certified until you have met all of the requirements....otherwise bye-bye.

When a job competition states "must haves" and CFA is listed guess what that means...you need a CFA not a CA and work experience.

Out of the 30 or so jobs I have seen in the finance industry in the past 4 months, 95% have said completion of CFA level 1 as a minimum requirement....very few required the entire designation. So in that case, it will open the door for you.

[G-Suede]

Originally posted by Mckenzie


Out of the 30 or so jobs I have seen in the finance industry in the past 4 months, 95% have said completion of CFA level 1 as a minimum requirement....very few required the entire designation. So in that case, it will open the door for you.

Mckenzie, I have no argument on your point at all. I imagine you can see the point I made as well if you take it back a step ie. just because one enrolls into level one, two, or three doesn't mean anything until passing notification arrives. By the time level three is earned I'm sure you'd be well past the point of looking for open doors into the industry.

[Criticull]

CFA > currently enrolled in CFA, so if you're competing against another person with a comparable background and other skill sets, you'll get smoked.

[ChappedLips]

What are salaries like for different levels of CFA?

[sk8r3124]

^^^ The level doesn't determine the salary


The CFA is a designation. And you really don't have anything until you have passed all three level and have a minimum of something like 3-5 of investment decision making experience.