Annual earnings of financial advisors fell by 11% during the year past, according to a new report.
The College for Financial Planning, Greenwood Village, Colo., published this finding in a summary of results from a new report, “The 2011 Survey of Trends in Financial Planning.” The report polled 345 individuals, including all Certified Financial Planner (CFP) certificants and recent graduates of the College’s Professional Education Program.
Financial advisors’ average annual earnings dropped to $190,922 from $215,345 in 2009 and from $195,349 in 2008, the report finds. Researchers placed the blame for the fall on the residual effects of the recession.
Despite the drop in annual earnings 94% of advisors were happy with their career choice, the report says.
The survey also found that advisors are:
–Varying compensation by mixing commissions and fees.
–Trending towards regularly offering low- and no-cost, single-focus and comprehensive financial plans.
–Boosting continued education due to a strong correlation between completing professional designations and increased earnings.
For example, the survey noted that an Accredited Wealth Management Advisor will have, on average, a 41% higher earning potential than someone without the designation.
–Michael K. Stanley