The more educated an advisor, the greater his or her compensation, according to a new survey by the College for Financial Planning.
The college surveyed 370 professionals last fall, following up on a similar national survey it conducted in 2016. Respondents were asked their annual compensation for the year prior to earning an advanced designation, and the year after getting the designation.
Two-thirds of respondents (68%) said they worked for a firm, while 32% were in private practice. A majority of respondents (80%) said they held securities licenses.
Half of respondents (49%) said they worked on a combination fee and commission basis; 42% said they worked on a fee-only basis; and 9% said they worked on a commission-only basis. Two-thirds of respondents (68%) said they didn’t charge an hourly rate, while 25% said they charged an hourly rate of $100 to $300 an hour.
Certified financial planners (CFPs) said they earned an average annual salary of $102,639, which rose to an average of $115,002 post designation – an increase of 12%.
The college found that financial planners who pursued a designation benefited on average by as much as 14.9% in increase in compensation.
Chartered retirement planning counselors (CRPCs) said they earned an average annual salary of $90,857 pre-designation, which rose to an average of $125,528 post designation – an increase of 38%.
Chartered retirement plans specialists (CRPSs) said they earned an average annual salary of $138,482, which rose to an average of $169,258 post designation – an increase of 22%.
Accredited asset management specialists (AAMSs) said they earned an average annual salary of $99,073, which rose to an average of $119,715 post designation – an increase of 21%.
Financial paraplanner qualified professionals (FPQPs) said they earned an average annual salary of $89,425, which rose to an average of $103,438 post designation – an increase of 16%.