Professional designations and FIRE

[peterpatch]

Here's a bit of background. I am a CPA, CMA (chartered professional accountant, certified management accountant) in Canada and that means that I have to pay dues (about $1k a year, currently paid by employer) and maintain a reasonable level of ongoing education and experience to maintain my accounting designation. This designation probably added about 20-30% more to my yearly salary and provides me with a wealth of options in the job market. Without the designation my prospects would be fewer but I could get by. When I FIRE I would like to somehow maintain my CPA designation for awhile just in case I get the urge to go back. The CPA organization will definitely withdraw my designation if I were to officially 'retire'. I'm thinking of writing a book, serving on one or more NPO boards and possibly doing some pro-bono work to maintain the CPA. However it's hard for me to think of a way to maintain the CPA without having to work long hours so I am trying to come up with creative solutions where I spend my time doing things I will enjoy that also happen to meet CPA work experience criteria.


Has anyone else been in a similar situation where their professional designation has been threatened by FIRE? Any tips are appreciated.

[marty998]

Been thinking about this (how to maintain your equivalent here in Australia - Chartered Accounting - designation) when I pull the plug.

Our dues are ~$650...

Probably won't need to actually use it though but it would be nice to maintain some connection to the profession.

[pbkmaine]

In the US, CPA status varies by state. In NJ, where I obtained my license, you can write to the state licensing board and request that your license be rendered inactive. I did so, my request was approved, and I am still a CPA, but with inactive status. If my circumstances change, I can reactivate it by getting current on my continuing education and then writing a letter to request reactivation.

[JoJo]

Do they have a dues waiver?

My society allows a dues waiver if your earned income is below a threshold.  It's much easier if you're above age 55, stay at home mom, or other such endeavors they think are worthy but I'm going to give it a try on the unemployeed/low income basis.  I think we still have to pay $75 and will show as non-compliant on the continuing ed but I think alot of retirees go this route.

[Fishindude]

Do a little part time work for an accounting firm during their busy season to cover this and stick a couple extra bucks in your pocket.

[couponvan]

Be self-employed and deduct the cost of the CPA renewal against income. In 5 hours of consulting a year this would be covered. Or negotiate that the NPOnpay your dues in return for your help.

[Brokenreign]

I'm a CPA in Canada too. There's an option on your annual fee form where you can select to have your fees reduced by 50% or waived altogether if your employment income is below a certain level. The form specifically says employment income so investment income is exempt.

The purpose is to allow retired people to keep their designation without paying significant fees. I can't remember whether you still have to do cpd or not, but that's easy and free through CPA webinars.

You'd might as well keep your designation. There's no reason to give it up. They'll likely audit you as you're young and claiming you have no employment income but they're generally pretty agreeable to work with.

[peterpatch]

@marty998 : Stopping being in CPA altogether is an alternative for me to consider. The pro’s may outweigh the cons but I’d prefer to find out 5 years into FIRE rather then immediately

@pbkmain : CPA in the USA is definitely different than CPA in Canada but I’ll look into it and see what my options are, thanks for providing the NJ perspective.

@JoJo and @Brokenreign: The official rule is that you be older then 55, have annual income under $25K and your age and the total number of years of continuous membership are > 70 then you’re exempt from dues. I’d need 19 years and then I’d meet the criteria, so that’s just too far out for me. I might be able to get an exception to the rules, I could always ask.

@ Fishindue and @couponvan : I have thought of doing some side jobs but that could be more work than it is worth if I have to market myself constantly just to pick up enough work to maintain membership. I’d need something steady and reliable but very part time.

[JoJo]

Well, I'm now in this boat.  Just asked for a dues waiver (90% reduction) because I retired in June.  Retirement prior to age 55 isn't a valid reason so I put "Unemployment" with $0 planned earned income.  We shall see if they grant me the waiver. 

Anyone else have experience with professional dues lately?  Or do you let your designation expire?  I'm not really planning to work but it would be really, really difficult to get the designation back if I let it expire. 

[couponvan]

I was SHOCKED that IL had $0 for an inactive CPA license renewal.

[scottish]

I'm a P.Eng in Alberta.  (No  I don't live in Alberta, but I also don't practice in Ontario).    APEGA allows you to be designated non-practicing - you don't have to meet the professional development requirements if you're non-practicing.    You still have to pay the dues though.

I don't know if accountants have the same option.

[Michael in ABQ]

I was a commercial real estate appraiser. The education, time, and cost to achieve that are similar to a CPA. When I left that profession and let my license lapse I seriously considered spending the $1,000 or so a year between license fees and continuing education to maintain it. In retrospect, I'm glad I didn't waste the money. It's true that I would practically have to start over and spend thousands of dollars and months or years to get that back. But I made the decision to leave that career because it wasn't a good fit for me. Nothing is going to change that. I can still use those skills in a different area, just not within the narrow confines imposed by that state license.

[Retire-Canada]

Has anyone else been in a similar situation where their professional designation has been threatened by FIRE? Any tips are appreciated.

P.Eng + PMP in Canada. I have maintained my designations in FIRE as part of my SORR mitigation plan. I will let them lapse by year #5 of FIRE if everything looks good.

[yachi]

I'm a P.Eng in Alberta.  (No  I don't live in Alberta, but I also don't practice in Ontario).    APEGA allows you to be designated non-practicing - you don't have to meet the professional development requirements if you're non-practicing.    You still have to pay the dues though.

I don't know if accountants have the same option.

I have the same designation, but in the US.  ASAIK I don't have a non-practicing designation available in my registration state, but I looked into what it takes to reinstate my license.  The requirements for reinstatement are the same amount of continuing education credits when I renew my license every 2 years.  I might have to go back to prior PE's I've worked with to sign off on my experience, but contacting previous employers would be a good first step if I'm re-entering the workforce.

There is a retirement designation, but it requires a certain number of years working as a PE, and I won't have that!

[sui generis]

I'm a lawyer and have maintained my bar membership, though on inactive status, since FIREing 3.5 years ago.  Every state and country is presumably very different, but here I was able to put my membership on inactive status and don't have to do any continuing education, but cannot practice law at all, even pro bono.  Which is fine, as I haven't been pulled to do it. 

I was kind of surprised that inactive status is the only option for retirees that don't want to completely resign their bar membership.  Even with a 50 year career in the law (which I did NOT have!) you have to keep paying till you die.  That's the guild system for you!  The good news for me is that the annual payment is less than $150 and given how hard I worked to get the bar membership in the first place (the bar exam was an interesting experience, but not one I will be repeating; and that's only one element of gaining bar membership), I haven't considered resigning so far.

But actually, this year I was thinking of doing so.  Why keep paying when I feel so confident I won't practice again?  OTOH, I can see that $150 is actually a bargain compared to some other professions, so now I'm leaning a little toward just keeping it for now.

[Much Fishing to Do]

I'm a lawyer and have maintained my bar membership, though on inactive status, since FIREing 3.5 years ago.  Every state and country is presumably very different, but here I was able to put my membership on inactive status and don't have to do any continuing education, but cannot practice law at all, even pro bono.  Which is fine, as I haven't been pulled to do it. 

I was kind of surprised that inactive status is the only option for retirees that don't want to completely resign their bar membership.  Even with a 50 year career in the law (which I did NOT have!) you have to keep paying till you die.  That's the guild system for you!  The good news for me is that the annual payment is less than $150 and given how hard I worked to get the bar membership in the first place (the bar exam was an interesting experience, but not one I will be repeating; and that's only one element of gaining bar membership), I haven't considered resigning so far.

But actually, this year I was thinking of doing so.  Why keep paying when I feel so confident I won't practice again?  OTOH, I can see that $150 is actually a bargain compared to some other professions, so now I'm leaning a little toward just keeping it for now.

There are some states that go a little lighter than "paying till you die"... but not much better (e.g. in VA you can be retired status at 70, in DC if you have practiced for over 25 years, and for both the dues are $0.)  I assume I'll just keep paying my dues for at least 5 years or so just to be certain, for inactive status there's not the CLE expense and the inactive dues are usually not a ton.

[Michael in ABQ]

States and professional organizations are all looking to make a buck. It doesn't benefit them to let you stop paying if you stop using that license/designation.

[JoJo]

Good news!  I was given the waiver for "Unemployeed" so dues were reduced from 750 to $68/year.  I'm gonna keep renewing for at least a few years as long as they keep allowing these lower dues.    Not planning on working again but good to know there's an option if things really go to crap. 

[Blissful Biker]

P.Eng + PMP in Canada. I have maintained my designations in FIRE as part of my SORR mitigation plan. I will let them lapse by year #5 of FIRE if everything looks good.

Same for me.  I am going to maintain my P. Eng and PMP for several years, until I am 100% sure I'll never need them again.  It's far too much effort to get them back if I let them expire.  And I am content to support those organizations in the mean time.  They've provided me a valuable service over the years.

[sui generis]

Good news!  I was given the waiver for "Unemployeed" so dues were reduced from 750 to $68/year.  I'm gonna keep renewing for at least a few years as long as they keep allowing these lower dues.    Not planning on working again but good to know there's an option if things really go to crap.

Congrats!  That's a huge savings.  Sounds like that was a really worthwhile effort.


I realized I was incorrect about my bar membership and paying fees until you die.  You can stop paying after age 70.  So if I'm willing to keep paying each year for now, I get a free ride starting in the year 2048.