2008 FPA Survey of Trends

8/2/2019 2008 FPA Survey of Trends

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College for Financial Planning

2008 Survey of

Trends in theFinancial Planning

Industry

A focus on financial planners, CFP education, and findings from the Colleges

professional designation programs

5747


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20022008, College for Financial Planning, all rights reserved.

This publication may not be duplicated in any way without the express written consent of thepublisher. The information contained herein is for the personal use of the reader and may not beincorporated in any commercial programs, other books, databases, or any kind of software or anykind of electronic media including, but not limited to, any type of digital storage mechanismwithout written consent of the publisher or authors. Making copies of this material or any portionfor any purpose other than your own is a violation of United States copyright laws.

The College for Financial Planning does not certify individuals to use the CFP, CERTIFIEDFINANCIAL PLANNER, and federally registered CFP (with flame logo) certification marks.CFP certification is granted only by the Certified Financial Planner Board of Standards, Inc. tothose persons who, in addition to completing an educational requirement such as this CFP Board-Registered Program, have met its ethics, experience, and examination requirements. Certified

Financial Planner Board of Standards, Inc. owns the certification marks CFP

, CERTIFIEDFINANCIAL PLANNER, and federally registered CFP (with flame logo), which it awards toindividuals who successfully complete initial and ongoing certification requirements.

At the Colleges discretion, news, updates, and information regarding changes/updates to coursesor programs may be posted to the Colleges website at www.cffp.edu, or you may call the StudentServices Center at 1-800-237-9990.

Printed in the United States of America.


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Table of Contents

About the Survey ............................................................. iCurrent Findings ............................................................... iiMethodology and Procedure ........................................ iiiReading the Data in the Tables ....................................... v

1 Planner Profile ........... ........... ........... ........... ........... ..... 1Planner Age ....................................................................... 1Planner Education ............................................................ 2Planner Experience ........................................................... 3Industry Affiliation ........................................................... 4Licenses and Designations............................................... 5Method of Earnings .......................................................... 6Planner Earnings ............................................................... 6Experience and Earnings ................................................. 8Assets Under Management ............................................. 9Career Satisfaction .......................................................... 10Planner Success ............................................................... 11

2 Planner Practice .......... ........... ........... ........... ........... .. 12Single Focus and Comprehensive Plans ...................... 12Demand for Specific Single Focus Plans ...................... 16

3 Typical Client Profile .......... ........... ........... ........... .... 18Typical Client Net Worth .............................................. 19Typical Client Financial Knowledge ............................ 20Typical Client Financial Concerns ................................ 21Retirement ........................................................................ 22Standard of Living in Retirement ................................. 22


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4 Survey Findings from the CollegesProfessional Designation Programs ........... ............ . 24

Respondent Age .............................................................. 25Respondent Experience .................................................. 25Industry Affiliation ......................................................... 25Licenses and Designations ............................................. 27Method of Earnings ........................................................ 28Respondent Earnings ..................................................... 29Career Satisfaction .......................................................... 30Respondents Success ..................................................... 31

5 Acknowledgments .......... ........... ............ ........... ......... 32

About Financial Planning Magazine.............................. 32Appendix ......................................................................... 33

Survey Materials ............................................................. 33Survey Questions: Financial Planners.......................... 34Survey Questions: Professional Designations ............ 41


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i 20022007, College for Financial Planning, all rights reserved.

About the Surveyelcome to the College for Financial Plannings 2008 Survey of

Trends in the Financial Planning Industry. The College is proud

to present these important trends in todays financial

planning environment again this year, comparing information from

surveys conducted from 2006 through 2008.

The objectives of the studies were to

develop an understanding of current planner income levels,

compensation methods, and satisfaction with their financial planning

education;

provide a description of the characteristics and concerns of the clients

financial planners serve, focusing on the expectations of clients

regarding retirement, level of financial knowledge, and concerns

about various financial planning topics;

evaluate the method and level of compensation for the types of plans

prepared most often; and

examine the level of satisfaction, attitudes, and success in providing

personal financial planning services for those that hold the CFP

certification or have completed a CFP education program. We also

continue to examine similar data related to the Colleges professional

designations.

These results will be of interest to corporations and individuals looking

for benchmarks against which to compare themselves, their clients, and

their careers.

W


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ii 20022007, College for Financial Planning, all rights reserved.

Current Findings

The financial climate has continued to weather many changes since the

initial Survey of Trends in the Financial Planning Industry was published in

1996. The 2008 findings revealed the following significant changes, some

of which are compared to those presented in earlier findings:

The primary methods of earnings are fee and commission (43%)

and fee only (30%). Both numbers are lower than previous years,

while there has been an increase in salary only and commission

only earnings.

The reported mean gross amount of planner earnings has changed as

follows: $232,995 in 2006; $283,079 in 2007; and $195,394 in 2008. This

change can potentially be explained by a larger demographic of

advisors that had been in the financial services industry for less than

five years.

The outcomes of the 2008 survey for preparing single focus and

comprehensive plans are very similar to those in the 2007 survey. Thirty-

four percent of respondents who prepare single focus plans typically

charge between $100 and $699 for preparation. However, it is notable that

38% of respondents who prepare single focus plans do not charge a fee.

Thirty-seven percent of respondents who prepare comprehensive plans

charge between $1,000 and $3,999 for preparation. Also, 34% of

respondents who prepare comprehensive plans do not charge a fee.

The 2008 outcomes confirm the 2007 (and previous years) findings

that planners remain very satisfied with their career choice, as

indicated by consistent satisfaction scores in all aspects of career

satisfaction, as well as in overall satisfaction with their career in the

financial planning industry. In fact, virtually all survey respondents

(96%) are either satisfied or very satisfied with financial planning as

their career choice.


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iii 20022007, College for Financial Planning, all rights reserved.

Planners place considerable emphasis on people and communicationskills, referrals from clients, and their educational background as the

top reasons for their continued success.

Methodology and Procedure

Wherever possible in this report, you will find this years information

compared to information from previous years.

The answers provided by respondents to questions on the Survey ofTrends in the Financial Planning Industry instrument allow the following:

development of an understanding of current planner income levels,

compensation methods, and satisfaction with their financial planning

education;

definition of the characteristics and concerns of clients served,

focusing on the expectations of clients upon retirement, level of

knowledge, and concerns about various financial planning topics;

an evaluation of the method and level of compensation for the typesof plans prepared most often;

examination of certificant level of satisfaction, attitudes, and success

in providing personal financial planning services; and

investigation of changes noticed in clients investment levels and

practices, career satisfaction and choices, and perception of the

industry in general.

MethodologyThirty-seven questions were developed to measure planner opinions

about their profession, practice, typical clients, and education. The survey

was administered in cooperation with Financial Planning magazine, which


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iv 20022007, College for Financial Planning, all rights reserved.

provided a list of recipients for our financial planning survey. We alsosent the survey to recent graduates of our own CFP Certification

Professional Education Program. Additional similar surveys were also

sent to recent graduates of each of our professional designation

programs. The results of the professional designation surveys can be

found in Chapter 4.

Procedure

An e-mail letter of invitation, along with a link to the survey, was sent to

Financial Planning magazine subscribers who possess the CFP

certification or have completed a CFP Certification Professional

Education Program and reside in the United States. We also contacted a

list of recent graduates of our own CFP Professional Education Program.

As compensation for their efforts, the respondents were offered either a

complimentary copy of the completed 2008 Survey of Trends in the

Financial Planning Industry or a complimentary CE product. Similar e-mail

invitations were sent to our professional designation graduates from

20032008.

The deadline for accepting surveys was April 15, 2008. The number and

percentage of surveys distributed and returned by the final cutoff date

were judged to be satisfactory for the purposes of describing and

comparing the opinions and experiences of the group of respondents.

The 408 valid responses for our financial planning survey and 703 for our

professional designation survey met the minimum sample size

requirements for statistical analysis at the 95% confidence level and for

inferences made to the general population of planners. The confidence

interval for survey responses was +/ 4.9% at a 95% confidence level.


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v 20022007, College for Financial Planning, all rights reserved.

Reading the Data in the Tables

Note that the data for each of the years presented in the study represents

information from the previous calendar year. For example, the 2008

gross income listed was actually earned in 2007.

In some instances the percentages do not equal 100% due to rounding.


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Planner Profile 1 20022008, College for Financial Planning, all rights reserved.

Chapter 1Planner Profile

Planner Age

Age figures were provided by 349 respondents.

Table 1: Planner Age Range

Age 2006 2007 2008

2129 years .9% .6% .6%

3039 years 13.6% 12% 4.9%

4049 years 25.7% 23.3% 18.9%

5059 years 42% 40.8% 49%

6069 years 16% 19.4% 24.1%

70+ years 1.8% 3.9% 2.6%


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2 2008 Survey of Trends in the Financial Planning Industry 20022008, College for Financial Planning, all rights reserved.

Planner Education

Beginning in 2005, respondents were asked for information regarding

where they received their financial planning education, how long it took

to complete, and their level of satisfaction with their education

experience.

Of individuals who pursued a CFP certification education program,

following is a breakdown of which institutions they attended.

Approximately 20% stated they did not attend a CFP

certificationeducation program. Financial planners holding certain related financial

services designations such as CPA, CLU, ChFC, and CFA are able to sit

for the CFP Certification Examination without attending a CFP

certification education program.

Of the individuals in 2008 reporting where they obtained their education,

more than half (59%) reported attending the College for Financial

Planning.

Table 2: Financial Planning EducationInstitution 2006 2007 2008

College for Financial Planning 60% 59% 59%

American College 9% 7% 3%

Adelphi University 3% .5% 0%

Fairleigh Dickinson University 3% 4% 1%

University of California (various locations) 1% 2% .5%

Boston University 1% 2% 2%

Kaplan University 1% .5% 2%

Other 22% 25% 11%


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The majority of respondents (229) who provided information about theirlevel of education hold at least a bachelors degree (87%), while 35% of

possess some type of graduate degree.

Of the 229 respondents who provided information about their financial

planning education:

Almost 58% of planners reported completing their education in two

years or less, and 94% completed their studies in four years or less.

Eighty-nine percent of the respondents were either very satisfied or

satisfied with their financial planning education experience.

Planner Experience

Participants were asked how many years they have been working in the

financial planning industry (see Table 3 and Table 6), and how many of

those years they have possessed the CFP certification (see Table 7).

Forty-five percent of planners who completed the survey had less than 10

years of experience in the financial services industry. This is more thandouble the percentage from 2007.

Table 3: Years in Financial Services Industry

Years 2006 2007 2008

14 years 2% 4% 14%

59 years 17% 14% 31%

1014 years 21% 15% 22%

1519 years 16% 15% 7%

2024 years 20% 25% 11%

2529 years 14% 17% 8%

30+ years 10% 10% 5%


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Industry Affiliation

Planners were asked to indicate the industry in which they are currently

employed. Respondents were encouraged to mark all categories that

applied, and in most cases provided more than one response. The

majority of respondents (77%) reported an affiliation with the financial

planning industry. This was also the case in previous years.

Figure 1

80

70

60

50

40

30

20

10

0

76.9 %


45.9 %

35.4%

29.7%

5.7%

6.1%

1.7%

4.8%

1.3%

Financial

Planning

Investment

Planning

Securities

Insurance

Accounting

andTax

Banking

RealEstate

Other

(Industry)

Other

(Non-Industry)

2006

2007

2008

* Percentages do not total 100% due to multiple categories being selected.


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Licenses and Designations

Planners were asked to indicate the professional designations they held.

Figure 2

50

40

30

20

10

0Life andHealth

NASD ChFCRIA CLU CPA EA

Licenses & Designations

2006

2007

2008

45.9%

22.7%

27.1%

8.3%9.2%

1.3%2.2%

*Some categories were added in 2007.

*Designations for which less than 4% was reported were not included. Percentages do not total 100% due to multiple

selections.


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Method of Earnings

Respondents were asked how they are primarily paid for the financial

planning services they provide. As in previous years, the most popular

method of earnings isfee and commission, although the percentage

compensated in this manner dropped from 51% in 2007 to 43% in 2008.

Table 4: Method of Earnings

Method 2006 2007 2008

Fee and commission 53% 51% 43%

Fee only 35% 34% 30%

Commission only 6% 9% 11%

Salary only 4% 4% 10%

Salary and fee 2% 1% 2%

Salary and commission 1% 1% 4%

Planner EarningsFor all years surveyed, those that hold the CFP certification consistently

report an increase in mean annual gross earnings after receiving their

CFP certification.

Table 5: Planner Earnings

2006 2007 2008

Gross in year prior to earningCFP certification

$75,326 $80,533 $103,709

Gross in year after earning

CFP certification

$90,827 $97,753 $143,831

Current Annual Gross $232,995 $283,079 $195,394


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Figure 3

2006 2007 2008

$300,000

$250,000

$200,000

$150,000

100,000

50,000

0

Planner Earnings

Gross in year prior to earning

CFP certifcation

Gross in year ater earning

CFP certifcation

Current Annual Gross

$232,995

$283,079

$195,394


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Experience and Earnings

Past Survey of Trends research has shown that experience within the

financial services field has a direct correlation to earnings. Planners with

more years practicing in the financial planning industry have reported

higher gross and net earnings.

Table 6: 2008 Mean Earnings Reported by

Number of Years in the Industry

Years Gross Earnings

14 years $63,891

59 years $116,396

1014 years $140,525

1519 years $202,538*

2029 years $317,544

30+ years $355,333*

Table 7: Mean Earnings Reported by

Number of Years Practicing as a CFP

Certificant

Years Gross Earnings


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Assets Under Management

In 2008, 14% of respondents reported that they did not manage assets. Of

the 86% of financial planners who manage assets, the following chart

indicates the amounts they managed.

Figure 4

30

25

20

15

10

5

0

Less than$1 Million

$1-19Million

$20-39Million

$40-59Million

$60-79Million

$80-99Million

$100Million +

Assets Under Management

2006

2007

2008

5.3%

27.2%

19.2%

6.8%

3.4%

19.2%

5%


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Career Satisfaction

The 2008 survey asked planners to report on the overall level of

satisfaction with their career choice in the field of financial planning.

Respondents indicated an average satisfaction score of 3.26, which was a

drop from last years 3.7 (on a scale of 1: very dissatisfied to 4: very satisfied).

In addition to their overall satisfaction, planners were asked about their

satisfaction level with individual aspects of their job. An overwhelming

96% of respondents still reported being either satisfied (29%) or very

satisfied (67%) with each aspect of their career. Figure 5 indicates planner

satisfaction with various aspects of the profession.

Figure 5

4

3.5

3

2.5

2

1.5

1

2006 2007 2008

HelpingClients

Im

provetheirLives

ChallengeofSolving

ClientProblems

Interactingwith

Clients

Beingan

Entrepreneur

C

ompetitivenature

ofbusiness

LevelofIncome

New

business

Prospecting

Professional

Liability

3.85

O

verallSatisfaction

3.263.60

3.563.45

3.092.86

2.7

2.63

Planner Satisfaction


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Planner Success

Sources of success in the financial planning profession were examined by

asking respondents to indicate to what extent they felt specific categories

or skills affected their success.

The responses to these survey items have been analyzed to determine

which areas contributed the most to planner success in the profession.

Figure 6 presents how respondents judged each of the areas in relation to

success as a financial planner on a scale from 1 (none) to 4 (much).

Figure 6

4

3.5

3

2.5

2

1.5

1

People

Skills

Referrals

fromC

lients

HavingCFP

Certification

Educational

Background

Continuing

Education

Specialization

3.673.54

3.113.203.03

2.82

Aspects of Success Rated

2006 2007 2008


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Chapter 2Planner Practice

Single Focus and Comprehensive Plans

Survey respondents were asked how many plans they prepared in the

last 12 months. For the second year in a row we saw an increase in the

number of planners who prepared no single-focus plans as well as an

overall decline in the number of single focus plans prepared.

Figure 7

50

40

30

20

10

0

Single-Focus Plans Prepared

2006

2007

2008

26%

11%

26%

23%

38%

45%

20%

9%

3%2%

4%3%

None 1-9 20-2910-19 30-39 40-49 50+

23%

11%

2%1%


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Planner Practice 13 20022008, College for Financial Planning, all rights reserved.

In 2008 a smaller percentage respondents answered that they prepared nocomprehensive financial plans, although there was an increase in those

who prepared 19 plans as well as those who prepared 40 or more

comprehensive plans.

Figure 8

40

35

30

25

20

15

10

5

0

Comprehensive Plans Prepared

2006

2007

2008

17%

21%

10%

37%

35%

38%

19%

21%

27%

10.5%

13%12%

5%

3%

1%

9%

4%

6%

None 1-9 20-2910-19 30-39 40-49 50+

6%


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When questioned about whether they charged fees for their financialplanning services in general, approximately 57% of respondents stated

that they did not charge an hourly rate. Figure 9 compares typical rates

charged during the last two years.

Figure 9

Hourly Rates Charged60

50

40

30

20

10

0

2007

2008

57%

43.1%

23.8%

29%

12.7%

21%

3.1%2.6%1%1.5%

2.5%2.8%

Less than$100

No HourlyRate

$100-199 $200-299 $300-399 $400+


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Figures 10 and 11 illustrate the typical fees charged for single focus andcomprehensive plans.

Figure 10

$0

$1-99

$100-$299

$300-$499

$500-$699

$700-$899

$900-$1099

$1,100-$1,299

$1,300-$1,499

$1,500-$1,999

$2,000-$2,499

$2,500+

40

35

30

25

20

15

10

5

0

38%

10%

1%

10%

14%

5%6%

3% 2% 2%3%

4%

Typical Fees for Single Focus Plans (2008)


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Figure 11

$0

$1-$249

$250-$499

$500-$749

$750-$999

$1,000-$1

,999

$2,000-$2

,999

$3,000-$3

,999

$4,000-$4

,999

$5,000+

35

30

25

20

15

10

5

0

34%

3%2%

5% 5%6% 6%

7%

19%

12%

Typical Fees for Comprehensive Plans (2008)

Demand for Specific Types of Single FocusPlans

Planners were asked to report how frequently they received requests for

the specific types of single focus plans.

Demand was measured on a four-point Likert scale anchored by 1: never

and 4: very frequently. The respondents indicate at least some level of

demand for each type of single focus plan. Consistent with prior research,

this years respondents noted that clients requested investment plans


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more often than any other plan. Planners report that demand for specificsingle focus plans, in general, is similar to but slightly lower than the

previous two years.

Figure 12

4

3.5

3

2.5

2

1.5

1Investments College

EducationFunding

Tax Estate Insurance Elder Care

Demand for Single-focus Plans

2006

2007

2008

2.87

2.062.02

1.97

1.88

1.70


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Chapter 3Typical Client Profile

Respondents were asked to report the number of financial planning

clients they have via a series of questions regarding typical client income

and investment percentages. They were also asked about the knowledge

level of their clients and their clients concern for various financial

planning concepts.

For the third year in a row, the typical client has remained very similar,

as Table 8 illustrates.

Table 8: Your Typical Client

2006 2007 2008

Age 5564 5059 5059

Type Two-incomecouple

Two-incomecouple

Two-incomecouple

Annual Gross Income $100,000$149,999 $100,000$149,999 $100,000$149,999

Annual DiscretionaryIncome

$10,000$19,999

$10,000$19,999

$10,000$19,999

Working with Planner 59 years 59 years 59 years


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Typical Client Profile 19 20022008, College for Financial Planning, all rights reserved.

Typical Client Net Worth

Of those surveyed, 44% of planners reported their typical client had a net

worth higher than $1 million. This is down from the 49% in 2007. Only

3% reported a typical client net worth higher than $5 million.

Table 9: 2008 Typical Client Net Worth

2007 2008

Less than $200,000 2% 5%

$200,000$299,999 5% 9%

$300,000$399,999 6% 6%

$400,000$499,999 6% 7%

$500,000$599,999 9% 11%

$600,000$699,999 7% 5%

$700,000$799,999 7% 5%

$800,000$899,999 6% 6%

$900,000$999,999 3% 2%

$1,000,000$1,499,999 21% 17%

$1,500,000$1,999,999 12% 9%

$2,000,000$4,999,999 14% 15%

$5,000,000$9,999,999 1% 2%

$10,000,000+ 1% 1%


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Typical Client Financial KnowledgePlanners were asked to rate their typical client on their perceived level of

knowledge within seven financial areas. Survey respondents used a four-

point Likert scale, with 1 equal to not knowledgeable and 4 equal to highly

knowledgeable, to evaluate their typical clients financial knowledge.

Figure 13

4

3.5

3

2.5

2

1.5

1

Basic

Budgeting

Financial

GoalSetting

Retirement

PlanningIssues

Investment

Iss

ues/Strategies

College

FundingIssues

TaxPlanning

Issues

In

suranceIssues

Estate

PlanningIssues

Average Perceived Client Knowledge

2006

2007

2008

2.58

2.142.37

2.08 1.96 1.85

1.81

1.58

*College funding question introduced in 2007.


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Typical Client Financial Concerns

Respondents clients were concerned to some degree about all 11 financial

issues examined in this years survey (on a scale of 1: not concerned to 4:

very concerned). Results indicated that the main concerns communicated

to planners by their clients have not changed significantly from prior

years.

Figure 14

4

3.5

3

2.5

2

1.5

1

3.02 3.00 2.99 2.86

2.682.62

2.24 2.23 2.23 2.22

Retirement

Funding

Health

CareCosts

Investmen

t/Asset

Growth

Tax

Burden

Managing

Money

OutlivingAssets

Funding

Educatio

nCosts

EstateP

lanning

Am

ountof

PersonalDebt

Lo

ng-term

CareFunding

Potentia

lforJob

Loss/Dow

nsizing

Typical Client Financial Concerns

2006

2007

2008

1.89


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Client Age for Focusing on Retirement60

50

40

30

20

10

0

2007

2008

.6%

.2%

.9%

.2%

42.2%

53.9%

8.3%

10.3%

.9%1.0%

33.5%

29%

13.5%

5.1%

21-29Never 30-39 40-49 50-59 60-69 70+

Retirement

More than 42% of the respondents reported that their typical client begins

to focus on retirement planning as a primary financial concern between

50 and 59 years of age; this is significantly lower than the 54% in 2007.

However, it appears that clients are now focusing on retirement at

younger ages, as evidenced by the 33.5% who responded that their clients

are now focusing on retirement between 40 and 49 years of age (up from

29% in 2007), and 13.5% are now focusing on retirement between 30 and39 years of age (up from 5% in 2007).

Figure 15


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Standard of Living in Retirement

The current survey asked respondents about client expectations

regarding standard of living during retirement. Feedback from the

respondents indicated that a majority of clients (86%) expect to maintain a

lifestyle that is the same as their present lifestyle. However, only 65% of

planners expect that their clients financial situations will maintain that

standard of living. Both percentages are down slightly from 2007.


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Chapter 4Survey Findings from the CollegesProfessional DesignationPrograms

Starting with the 2007 Survey of Trends in the Financial Planning

Industry, the College began surveying our own professional designation

holders in addition to CFP certificants.

An e-mail letter of invitation along with a link to the survey was sent to

graduates of our AAMS, AWMASM, CMFC, CRPC, CRPS, and

Foundations in Financial PlanningSM (formerly RPSM) programs from the

last five years. In total, 703 responses were collected from the six surveys.

The Colleges retirement planning designations (CRPC and CRPS)

provide the tools and expertise necessary to advise and guide clients

through the retirement process, or assist companies and small-business

owners in establishing and managing retirement plans.

The Colleges asset management designations (AAMS, AWMASM, and

CMFC) provide efficient tools to help clients capitalize on opportunities

to preserve, grow, and transfer wealth. These designations develop

stronger, lasting client relationships and provide insight into effective use

of investment vehicles.

The Foundations in Financial PlanningSM (formerly RPSM) program is

designed to provide an overview of the financial planning process for

those who are in a support role or are new to the industry.

Thirty-seven questions were developed to measure designation holders

opinions about their profession, practice, and typical client.


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Survey Findings from the Colleges Professional Designation Programs 25 20022008, College for Financial Planning, all rights reserved.

Respondent Age

Table 10: Planner Age Range

Age AAMS AWMA CMFC CRPC CRPS RP

2129 years 14% 16.7% 26.7% 14.6% 9.1% 34.8%

3039 years 30% 20.8% 26.7% 25.1% 25% 21.7%

4049 years 24% 45.8% 23.3% 25.8% 31.8% 17.4%

5059 years 26% 12.5% 16.7% 24% 22.7% 21.7%

6069 years 6% 4.2% 6.7% 10.5% 11.4% 4.3%

70+ 0% 0% 0% 0% 0% 0%

Respondent Experience

Table 11: Years Working With Typical Clients

Years AAMS AWMA CMFC CRPC CRPS RP

< 1 year 2% 10.8% 2.3% 8% 4.7% 5%

14 years 60.8% 70.3% 58.1% 36.6% 34.4% 65%59 years 29.1% 13.5% 20.9% 33.6% 29.7% 20%

1014 years 3.8% 2.7% 18.6% 13.4% 20.3% 7.5%

1519 years 3.8% 2.7% 0% 4.1% 7.8% 2.5%

2024 years 0% 0% 0% 3.2% 1.6% 0%

2529 years 0% 0% 0% 0.7% 0% 0%

30+ years 0% 0% 0% 0.5% 1.6% 0%

Most of the respondents in each designation appear to have been in the

financial services industry between one and four years, especially forthose who have earned our asset management designations.

Approximately 80% of the individuals who possess any of the asset

management designations have been in the financial services industry for


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less than 10 years. Conversely, individuals who possess our retirementplanning designations have more industry experience.


Survey respondents were asked to indicate the industries in which they

were currently employed. Respondents were encouraged to mark all

categories that applied, and in most cases provided more than one

response. The largest percentage of respondents in each designation

reported an affiliation with the financial planning, investment planning,

and securities industries.

Figure 16*

Industry Affiliation (2008)

60

50

40

30

20

10

0

49.5%

52.7%

24.8%

44.7%

16.3%

4.2%5.7%

1%0.8%

Financial

Planning

Investment

Planning

Securities

Insurance

Accounting

Banking

RealEstate

Other

(Industry)

Other

(Non-Industry)

*Percentages do not total 100% due to multiple categories being selected.


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Licenses and Designations

Figure 17

50%

40%

30%

20%

10%

0%

AAMS AWMA CMFC CRPC CRPS RP

Licenses & Designations

RIA NASDLie & Health CFP

Respondents were asked to indicate which additional licenses and

designations they held. Life & Health, NASD, CFP, and the RIA were the

most frequently reported. Life & Health proved to be the mostly widely

held designation (between 28% and 47%) for all respondents.


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Method of Earnings

Respondents were asked how they are primarily compensated for the

financial planning services they provide. The most common method of

earnings isfee and commission for all designations except RPSM, for which

salary only is the most common method. The highest percentage of fee and

commission advisors are holders of the Colleges retirement planning

designations.

Table 12: Method of Earnings

Method AAMS AWMA CMFC CRPC CRPS RP

Fee and commission 37% 56% 49% 65% 60% 18%

Fee only 6% 9% 24% 9% 14% 12%

Commission only 25% 9% 8% 11% 11% 6%

Salary only 11% 13% 3% 7% 5% 47%

Salary and fee 10% 3% 0% 1% 2% 9%

Salary and commission 12% 9% 16% 7% 9% 9%


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Respondent Earnings

For all designations, respondents consistently reported an increase in

annual gross earnings after receiving their specific designation.

Figure 18

$250,000

$200,000

$150,000

$100,000

$50,000

0

Respondent Earnings

Beore

Ater

$228,757

$175,309

$150,735

$117,182

$56,892

AAMS AWMACMFC

$142,889

$166,804

$135,500$129,283

$104,846

$50,296

CRPC CRPS RP

$120,899

Table 13: Percentage Increase in Earnings After Designation

CRPC CRPS CMFC AAMS AWMA* RP

18% 37% 29% 17% 12% 13%

* Sample size under 30

When asked if their client base grew after receiving their new

designation, over 80% of all respondents reported an increase in clients.


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Of the 80% of respondents who reported this increase, half reported thattheir client base increased more than 10%.

Career Satisfaction

The highest ratings in career satisfaction among all designations occurs

with Helping clients improve their lives. Figure 19 indicates

respondent satisfaction with various aspects of their profession on a scale

from 1 (none) to 4 (much).

Figure 19

HelpingImprove

ClientsLives

ProblemSolving

ClientInteraction

Beingan

Entrepreneur

Competitive

Natureof

Business

Levelof

Income

New

Business

Prospecting

Professional

Liability

4.0

3.5

3.0

2.5

2.0

1.5

1.0

Career Satisfaction Ratings

AWMA

CRPS

CMFC

RP

AAMS

CRPC


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Respondents Success

Respondents were asked to indicate to what extent they felt specific

categories or skills affected their success.

The responses to these survey items have been analyzed to determine

which areas contributed the most to the respondents success in their

profession. The figure below presents how respondents judged each of

the areas in relation to their career success on a scale from 1 (none) to 4

(much).

Figure 20

People/

Communication

Skills

Referralsfrom

Clients

Havingthe

Certification

Educational

Background

Continuing

Education

Specialization

4.0

3.5

3.0

2.5

2.0

1.5

1.0

Aspects of Success Rated

AWMA

CRPS

CMFC

RP

AAMS

CRPC


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Chapter 5Acknowledgments

The Colleges most sincere appreciation goes to the 2008 planner survey

participants and College professional designation holder survey

participantstheir candid feedback has made this report possible.

A special thank you is also extended to Financial Planning magazine for

providing the list and list demographics for much of this years study.

Chris Allen and Joe Crifasi (who compiled this years survey) would like

to thank the following people: Gina Haas and Michael OConnor at

Financial Planning magazine, Jesse Arman, Holly Skarda, Joe Macri, and

all of the people who responded to the survey.

About Financial PlanningMagazine

After 30 years, Financial Planning magazine remains the number-one

choice of more than 100,000* of the nations leading investmentprofessionals. Financial Plannings mission is to provide the content that

advisers need to enhance their professionalism and succeed in business.

The magazine has evolved to suit the ever-changing needs of its readers

and clients. Financial Planning delivers trusted information in a variety of

innovative formats: in print, online, e-mail, Web seminars, conferences,

and custom publishing.

For more information please visit financial-planning.com.

*Source: August 2005 Reader Survey


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Appendix 33 20022008, College for Financial Planning, all rights reserved.

Appendix

Survey Materials

Note that the message sent to Professional Designation graduates was

similar to that sent to CFP certification graduates.


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Survey Questions: Financial Planners

1. Your typical clients age:

2. Your typical client is a(n):

3. Your typical clients before-tax gross annual income is:

4. Your typical clients annual discretionary income (excess cash flow) is:

5. Your typical clients net worth is:

6. Savings and retirement:

The percentage of your typical clients before-tax gross annual

income that goes into short- and long-term savings or savings

vehicles is:


income that has been specifically earmarked for retirement

savings is:

7. At approximately what age does your typical client focus on

retirement planning as an important financial concern?

8. How long have you been working with your typical client?

9. Standard of living:

What standard of living does your typical client expect in his/her

retirement?

Based on a typical clients financial situation, what standard of

living do you anticipate for him/her?


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10.How knowledgeable is your typical client in each of the following

areas:

Basic budgeting

Financial goal setting

Insurance issues

Investment issues/strategies

Tax planning issues

Estate planning issues

Retirement planning issues

College funding issues

11.How concerned is your typical client about each of the following:

Managing money

Amount of personal debt

Potential for job loss/downsizing

Funding education costs

Health care costs

Tax burden

Investment/asset growth

Retirement funding

Estate planning

Outliving assets

Long-term care funding

12.Over the past year, how often did you receive requests for the

following single focus plans?

Insurance

Investments

Tax Estate

College education funding

Elder care


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13.How many single focus plans did you prepare in the last 12 months?

14.What is your typical fee for preparing a single focus plan?

15.How many comprehensive plans did you prepare in the last 12

months?

16.What is your typical fee for preparing a comprehensive plan?

17.How many financial planning clients do you have?

18.What is the total amount of assets you personally manage?

19.How are you primarily paid for the financial planning services you

provide?

20.What hourly rate do you charge for financial planning services?

21.What is your age?

22.What is your gender?

23.What is the highest level of education you have attained?

24.Which designations do you currently hold?

25.Please indicate the industry in which you are currently employed.

26.Are you self-employed?

27. If you are NOT self-employed, please list the company at which you

are employed:

28.Experience:

How many years have you been working in the financial planningindustry?

How many years have you been practicing as a CERTIFIED

FINANCIAL PLANNER certificant?


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29. If you attended a CFP education program, please indicate where:

30.How long did it take you to complete your financial planning

education program?

31.How satisfied were you with your experience at your financial

planning educational institution?

32.What were your combined GROSS (before-tax) annual earnings

gained from financial planning activities in the year BEFORE you

received your CFP

certification?


gained from financial planning activities in the year AFTER you

received your CFP certification?

34.What were your combined GROSS (before-tax) earnings gained from

financial planning activities for the most recent calendar year?

35.What were your combined NET earnings gained from financial

planning activities for the most recent calendar year?

36. Indicate the degree to which you are satisfied with the following

aspects of your financial planning career.

Level of income

Interacting with clients

Challenge of solving client problems

Competitive nature of business

Being an entrepreneur

Helping clients improve their lives

Professional liability New business/prospecting

Overall, financial planning as your career choice


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37. Indicate to what extent the following factors have affected yoursuccess as a financial planner.

Continuing education

Having the CFP certification

Referrals from clients

Specialization

People/communication skills

Educational background


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Survey Questions: College for FinancialPlanning Professional Designations

1. Your typical clients age:

2. Your typical client is a(n):

3. Your typical clients before-tax gross annual income is:

4. Your typical clients annual discretionary income (excess cash flow) is:

5. Your typical clients total net worth is:

6. Savings and retirement:


income that goes into short- and long-term savings or savings

vehicles is:


income that has been specifically earmarked for retirement

savings is:

7. At approximately what age does your typical client focus on

retirement planning as an important financial concern?

8. How long have you been working with your typical client?

9. Standard of living:

What standard of living does your typical client expect in his/her

retirement?

Based on a typical clients financial situation, what standard of

living do you anticipate for him/her?


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10.How knowledgeable is your typical client in each of the following

areas:

Basic budgeting

Financial goal setting

Insurance issues

Investment issues/strategies

Tax planning issues

Estate planning issues

Retirement planning issues

College funding issues

11.How concerned is your typical client about each of the following:

Managing money

Amount of personal debt

Potential for job loss/downsizing

Funding education costs

Health care costs

Tax burden

Investment/asset growth

Retirement funding

Estate planning

Outliving assets

Long-term care funding

12.Over the past year, how often did you receive requests for the

following single focus plans?

Insurance

Investments

Tax Estate

College education funding

Elder care


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13.How many single focus plans did you prepare in the last 12 months?

14.What is your typical fee for preparing a single focus plan?

15.How many comprehensive plans did you prepare in the last 12

months?

16.What is your typical fee for preparing a comprehensive plan?

17.How many financial planning clients do you have?

18.What is the total amount of assets you personally manage?

19.How are you primarily paid for the financial planning services you

provide?

20.What hourly rate do you charge for financial planning services?

21.What is your age?

22.What is your gender?

23.What is the highest level of education you have attained?

24.Which designations do you currently hold?

25.Please indicate the industry in which you are currently employed.

26.Are you self-employed?

27. If you are NOT self-employed, please list the company at which you

are employed:

28.Experience:

How many years have you been working in the financial planning

industry?

How many years have you been practicing as a certificant?


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29.How long did it take you to complete your program?


gained from financial planning activities in the year BEFORE you

received your designation?


gained from financial planning activities in the year AFTER you

received your designation?

32.What were your combined GROSS (before-tax) earnings gained fromfinancial planning activities for the most recent calendar year?

33.What were your combined NET earnings gained from financial

planning activities for the most recent calendar year?

34.Did your client base grow after you received your designation?

35. If you answered Yes to the previous question, how much did your

client base grow after you received the designation?

36. Indicate the degree to which you are satisfied with the following

characteristics of your financial planning career.

Level of income

Interacting with clients

Challenge of solving client problems

Competitive nature of business

Being an entrepreneur

Helping clients improve their lives

Professional liability

New business/prospecting Overall, financial planning as your career choice


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37. Indicate to what extent the following factors have affected yoursuccess as a financial planner.

Continuing education

Having the certification

Referrals from clients

Specialization

People/communication skills

Educational background

2008 FPA Survey of Trends

Documents

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