The average annual compensation of financial professionals, now approaching $100,000, is up 4 percent from the level recorded in 2010, according to a new report.
The Financial Planning Association, Washington, D.C., discloses this finding in the FPA’s “2012 Financial Planning Salary Survey.” Based on more than 1,000 responses from financial advisors, the survey reviews compensation for 21 positions within a firm.
The report shows that, on average, sole practitioners receive an annual compensation of $98,049 (not including money invested in their practice). This is just over a 4 percent increase compared to the $94,125 reported in 2010.
By region, financial professionals working in the West-North-Central states earn the most on average at $107,000. This compares with average annual earnings of $106,203, $88,540 and $87,500 for the Pacific, Mountain and West-South-Central states.
By years of experience, the report adds that advisors who have practiced for more than 20 years earn the most annually: $124,836 on average. The annual comp declines to $117,445, $90,645 and $58,929 for advisors possessing, respectively, 13-20 years, 7-12 years and six or fewer years of experience.