|Copyright:||Copyright Business Wire 2011|
|Source:||Business Wire, Inc.|
2011 Survey of Trends in Financial Planning shows 94 percent of advisors still satisfied with career choice, despite 12.7 percent decline in earnings compared to 2009; survey also highlights shift toward no- and low-cost plan preparation and importance of continuing education
However, despite lower earnings, a majority of personal financial advisors are still satisfied with their career choice according to the 2011 Survey of Trends in Financial Planning, conducted by the
Responses, provided by hundreds of financial advisors surveyed by the College, also illustrate an ongoing emphasis on continuing education, with more than half of polled advisors holding one of the College’s certifications or designations. Results show that one year after completing the College’s Certified Financial Planner® (CFP) Education program, advisors saw their earnings increase by 30 percent on average. Advisors holding other professional designations also earned more.
“On the heels of one of the worst recessions in U.S. history, salaries for personal financial advisors are not at historical levels, certainly, but what data continues to show is tremendous job satisfaction, the unparalleled importance of the human component in advisors’ careers, and the value advisors place on education,” said
The 2011 Survey of Trends in Financial Planning marked the 13th year the College has conducted the survey. Additional key findings include:
- Advisor earnings have fallen from their peak in 2009 to slightly below 2008 levels.Average annual earnings fell to
$190,922during the survey period from $215,345in 2009 and $195,394in 2008. Researchers suggest that the lingering effects of the economic recession are likely to blame for the decrease in earnings.
- Advisor compensation is trending toward a mix of fees and commissions. Since 2008, the percentage of financial advisors reporting fees and commissions as their primary method of income has risen by almost half, from 43 percent to 60 percent. During that same period, the percentage of planners reporting income from fees only has dropped commensurately, from 30 percent to 17 percent in 2011. Regarding hourly rates, 64 percent of survey respondents indicate that they have not changed their rates since 2008.
- Advisors are routinely offering low- and no-cost single-focus and comprehensive financial plans. Thirty-six percent of advisors indicate they do not charge for single-focus plans, and 37 percent do not charge for comprehensive plans. Among advisors who prepare single-focus plans, 27 percent charge between
$100 and $699, and 34 percent of advisors who charge for comprehensive plans require less than $2,000for preparation.
- Advisors rate people skills, referrals and education as the three most important components of success. Holding steady from previous studies, people/communications skills, client referrals and education retain their dominance as critical aspects of a successful financial advising business.
- Completing a professional designation program from the College shows a strong correlation with increased earnings.
- Certified Financial Planner®: 30 percent higher one year after program completion
- Accredited Wealth Management AdvisorSM: 41 percent higher than average
- Chartered Mutual Fund CounselorSM: 38 percent higher than average
- Chartered Retirement Planning CounselorSM: 12 percent higher than average
- Clients’ key concerns remain health care costs and saving for retirement. Advisors identify health care costs as their clients’ most significant concern in 2011, a change from the last survey. As in previous years, however, health care costs and retirement savings continue to figure most prominently among client concerns, edging out worries over tax burden and investment growth.
- Clients continue to differ with planners in their retirement expectations. Nearly 90 percent of clients anticipate their standard of living will remain the same or improve after they retire, an expectation that, for many, contrasts with reality. Advisors predict that only 75 percent of clients will maintain or improve their standard of living in retirement.
For complete survey results, visit: http://www.cffpinfo.com/.
To generate information for the Survey of Trends, the
Founded in 1972, the
In addition to its CFP Certification Education Program, the College offers a Master of Science degree program for more in-depth knowledge of the finance industry. Professional designation programs are also available, with specializations from asset management to retirement planning.
More than 120,000 students have graduated from the College’s programs. For more information, visit www.cffpinfo.com.
Linhart Public Relations for