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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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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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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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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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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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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 %
Industry Affiliation
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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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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Planner Practice 15 20022008, College for Financial Planning, all rights reserved.
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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Planner Practice 17 20022008, College for Financial Planning, all rights reserved.
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 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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Typical Client Profile 23 20022008, College for Financial Planning, all rights reserved.
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.
Industry Affiliation
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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Survey Findings from the Colleges Professional Designation Programs 27 20022008, College for Financial Planning, all rights reserved.
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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Survey Findings from the Colleges Professional Designation Programs 29 20022008, College for Financial Planning, all rights reserved.
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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Survey Findings from the Colleges Professional Designation Programs 31 20022008, College for Financial Planning, all rights reserved.
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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32 2008 Survey of Trends in the Financial Planning Industry 20022008, College for Financial Planning, all rights reserved.
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:
The percentage of your typical clients before-tax gross annual
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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Appendix 35 20022008, College for Financial Planning, all rights reserved.
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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Appendix 37 20022008, College for Financial Planning, all rights reserved.
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?
33.What were your combined GROSS (before-tax) annual earnings
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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Appendix 39 20022008, College for Financial Planning, all rights reserved.
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:
The percentage of your typical clients before-tax gross annual
income that goes into short- and long-term savings or savings
vehicles is:
The percentage of your typical clients before-tax gross annual
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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40 2008 Survey of Trends in the Financial Planning Industry 20022008, College for Financial Planning, all rights reserved.
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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Appendix 41 20022008, College for Financial Planning, all rights reserved.
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?
30.What were your combined GROSS (before-tax) annual earnings
gained from financial planning activities in the year BEFORE you
received your designation?
31.What were your combined GROSS (before-tax) annual earnings
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
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