Does a CPA need CFP certification?

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#21
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southparkcpa wrote:
TaxMan2020 wrote:
Beagle wrote:Any investment firm will help you set up your RIA or let you link in with one they have depending on your choice. Charles Schwab is pretty huge in that sort of thing for independent RIA offices and Fidelity is big also. You can go with a local firm very easily who will let you just slide in under their platform for a fee. I work with a local firm who takes 10% of my investment related revenue and I reimburse them for any fees they incur on my behalf (my license fee, some insurance). You want to be in one of the major clearing firms because it makes ACAT transfers easy and quick. Having a firm you work with also helps because they'll help solve problems as they come up. They may also get you significant discounts on quote services, planning software, research, marketing material and such.


We do the same. They take 10% and handle a lot of the headaches


This is what I did. I joined a "hybrid" RIA here in Charlotte. I pay them a flat fee NOT a percent. I am 95 percent fee only. They are the RIA. I pay them a fee each month and they do all the compliance etc. My goal was to get X dollars under management and I did that so my FP revenue is now 3K greater than the accounting revenue and I have dropped all tax clients with no assets under management.

I have a deal to "transition" my practice to the RIA for a 7 figure deal when I retire which will be in the next few years. This FP gig works well if done right.

What was your growth like on the FP side?
 

#22
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Taxman... Not sure why I can't respond directly... BUT

I was stuck at 20 MIL forever. In 2015 I joined a hybrid LPL RIA and rebranded myself. Hit 50 MIL by 2019 or so.
 

#23
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southparkcpa wrote:Taxman... Not sure why I can't respond directly... BUT

I was stuck at 20 MIL forever. In 2015 I joined a hybrid LPL RIA and rebranded myself. Hit 50 MIL by 2019 or so.


How’d you rebrand? That’s a good jump in that time frame
 

#24
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TaxMan2020 wrote:
southparkcpa wrote:Taxman... Not sure why I can't respond directly... BUT

I was stuck at 20 MIL forever. In 2015 I joined a hybrid LPL RIA and rebranded myself. Hit 50 MIL by 2019 or so.


How’d you rebrand? That’s a good jump in that time frame


I literally stopped doing tax work for non asset clients. Created a foldout 4 color brochure talking about the advantages of using a CFP/CPA on distribution planning etc. Put it in each client tax folder from 2015 to 2019 when we had a paper deliverable. Honestly, confidence and the way I carried myself as well.

I stopped doing almost anything accounting related, got rid of my CPA website and created a CFP website. Sent out an E mail blast 2-3 times a year so people would think of me as the financial planner that does taxes and NOT the reverse.

If a client had 750K with me, all 1040 work was free. Many times a client had 300 to 400 in an IRA at another RIA. I offered them free 1040 tax work to roll it to me and I would invest it exactly like I was invested. I use models for myself and clients.

300K at 1 percent was 4 times his tax prep fee. So I now do about 50 tax returns free..... but each of those clients, on average brings in 4-8K in AUM fees.
 

#25
smtcpa  
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This is great stuff. For me, in my first attempt, people thought of me as the tax guy dabbling in financial planning. That does not work. Totally agree that the focus has to change to what you said: a financial planner who does taxes.
Thanks for your perspectives!

southparkcpa wrote:
I stopped doing almost anything accounting related, got rid of my CPA website and created a CFP website. Sent out an E mail blast 2-3 times a year so people would think of me as the financial planner that does taxes and NOT the reverse.

 

#26
Beagle  
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southparkcpa wrote:
If a client had 750K with me, all 1040 work was free. Many times a client had 300 to 400 in an IRA at another RIA. I offered them free 1040 tax work to roll it to me and I would invest it exactly like I was invested. I use models for myself and clients.


My dollar figure is less than 750k but it's exactly how we've done things. I only do accounting for 1 client and that's minimal.

One thing I noticed immediately, once a client has taxes and investments they never leave. In 15+ years I haven't lost a single client I didn't force out. When the hot salesman broker / rep calls with ideas wanting assets moved, clients don't fall for it because the work of finding a new tax person is substantial. I've been in investments since 1992, EA since 2005. Most of the other advisors had me doing their client's taxes also so I have a relationship as strong as the advisor.
 

#27
MilesR  
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In CA at least, it seems that a PFS would also qualify to get an RIA and it seems pretty similar to a CFP (maybe someone feels strongly that one is better than the other?). Getting a PFS, although requiring a CPA license, seems to require less hours/experience in financial planning, but how does a CPA practicing tax get this required experience in financial planning?
 

#28
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telaxman wrote:Oh, I didn't realize that.

The CPA exam is so much more difficult than what I imagine the CFP exam and requirements are like, so I am surprised.


Fyi - this is not correct.

The CPA exams are not harder than the CFP or the series 7 and even if they were harder the subject matter is very different.

A CPA doesn't qualify you to do financial planning any more than it qualifies you to do a root canal.
Know your worth, then add tax!
 

#29
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Stevuke79 wrote:
telaxman wrote:Oh, I didn't realize that.

The CPA exam is so much more difficult than what I imagine the CFP exam and requirements are like, so I am surprised.


Fyi - this is not correct.

The CPA exams are not harder than the CFP or the series 7 and even if they were harder the subject matter is very different.

A CPA doesn't qualify you to do financial planning any more than it qualifies you to do a root canal.



I have taken all 3 and disagree. In my opinion, the CPA exam is most difficult, requires the most schooling and training.

Someone, IMO, could pass the CFP exam after studying 2-6 months with almost NO background in finance. I see it all the time.

Series 7. More difficult than I imagined it would be but could be passed after 2 weeks of studying. Think of all the penny stock brokers. They all passed.

NONE really qualify you to do financial planning. That is a different animal. Lot's of young , solid, talented CFP's in my office who are NOT ready to handle clients one on one yet.
 

#30
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"Someone, IMO, could pass the CFP exam after studying 2-6 months with almost NO background in finance. I see it all the time."

Not to argue, but isn't the same true of the CPA? It usually takes about 2 months to study. I agree that the CFP probably takes about the same, two months.

IMVHO the series 7 is harder than both simply because you didn't have to get a masters degree before sitting for the exam.. you learn from scratch and THEN you get the education. Granted, if you study neither are terribly difficult. Just stressful.
Know your worth, then add tax!
 

#31
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I am thinking of pursuing the CFP, I have read up on the "fast track" process, and the only area I am unclear is the requirement of 6,000 hours of experience in " the delivery of financial planning services to individual clients".

I reached out to the board and they basically said it was up to my discretion to determine how many of my hours as a CPA would qualify. This is really hard to quantify in my eyes, but I would think in almost 10 years of firm ownership I would meet this pretty easily.

Anyone have any personal experience in how they worked this out and what hours they reported?
 

#32
eze  
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Preppie wrote:I am not a CPA. I am an EA with a tax business. I am also a CFP® Professional with an RIA.
Just want to put in another plug for XY Planning Network. I, too, am a member. It's a great association/network. Check it out!


I read that as XYZ bla bla Network... I wasn't thinking it was a real company until you plugged it. I should get out more....
 

#33
Preppie  
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eze wrote:
Preppie wrote:I am not a CPA. I am an EA with a tax business. I am also a CFP® Professional with an RIA.
Just want to put in another plug for XY Planning Network. I, too, am a member. It's a great association/network. Check it out!


I read that as XYZ bla bla Network... I wasn't thinking it was a real company until you plugged it. I should get out more....

I was once asked if it was financial planning for people with gender confusion. :lol:
 

#34
MilesR  
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BullCityCPA wrote:I am thinking of pursuing the CFP, I have read up on the "fast track" process, and the only area I am unclear is the requirement of 6,000 hours of experience in " the delivery of financial planning services to individual clients".

I reached out to the board and they basically said it was up to my discretion to determine how many of my hours as a CPA would qualify. This is really hard to quantify in my eyes, but I would think in almost 10 years of firm ownership I would meet this pretty easily.

Anyone have any personal experience in how they worked this out and what hours they reported?



I'm in the same boat. Does anyone know if tax prep/planning counts toward the CFP experience requirement? It sounds like it does but I can't find anything definitive on it.
 

#35
Preppie  
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MilesR wrote:I'm in the same boat. Does anyone know if tax prep/planning counts toward the CFP experience requirement? It sounds like it does but I can't find anything definitive on it.

If your tax prep/planning falls withing the CFP Board's guidelines, then it does.
https://www.cfp.net/get-certified/certi ... experience
A big chunk of my experience hours were related to tax prep and planning.
You just need somebody qualified to verify it. I reported my experience in 300 - 400 hour chunks. The CFP Board contacted about half of the people who were verifying my experience, so they do follow up on that. (Or at least they did 5 years ago!)

Good Luck!
 

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