2014 SURVEY of TRENDS

I N T H E F I N A N C I A L P L A N N I N G I N D U S T R Y

LEARN MORE.

The purpose of this study is to provide a snapshot of the financial planning industry via the eyes of CFP® practitioners as well as graduates of our own professional designation and MS programs. The College has been conducting the survey since 1996, although it hasn’t been published yearly due to varying response rates.

This year’s Survey of Trends features an entirely new format to make the most requested survey results easier to see, interpret, and digest. Additionally, it offers a bit more background on each of the credentials and what their purpose is.

SURVEY of TRENDS IN THE FINANCIAL PLANNING INDUSTRY

2 14EARN MORE.

S U R V E Y O B J E C T I V E S

The objectives of the studies were to: Develop an understanding of current planner income levels and satisfaction with their financial planning education. Examine the level of satisfaction, attitudes, and success in providing personal financial planning services for those who hold the CFP® certification, one of the College’s professional designations, or one of our MS degrees.

These results will be of interest to corporations and individuals looking for benchmarks against which to compare themselves, their clients, and their careers.

Since the first Survey of Trends in the Financial Planning Industry was conducted in 1996, these findings have remained consistent. A financial certification or professional designation leads to greater earnings, job satisfaction, and more clients.

Respondents reported across the board that their success could be directly attributed to having their current credential, their education background, and their continuing education efforts. Other factors that received strong recognition were client referrals and effective communication skills.

O V E R A L L R E S U L T S

The Survey of Trends in the financial planning industry has illustrated three main findings:

10 20%INCREASE in respondents’ # of clients

AV E R A G E E A R N I N G S I N C R E A S E

21% $105,273$127,260

Survey respondents report significant increases in their earnings after earning their credential

Survey respondents report significant increases in their number of clients after earning their credential

Survey respondents report significant increases in their job satisfaction after earning their credential

AFTER

BEFORE

More respondents reported that they had been working in the industry between 10-14 years than any other 5-year window. That was the case for nearly every program, although AAMS® and RP® designees were slightly younger due to the introductory nature of those programs.

S T U D E N T W E A LT H of E X P E R I E N C E

Male respondents outnumbered female respondents, althoughtwo programs, the ADPA® & Foundations in Financial Planning SM,

received a majority of female respondents.

MEN

72%28%

WOMEN

5% 21-29

59%40-59

THE AGE OF OUR RESPONDENTS

Reported they were extremely satisfied with their career choice.

OUT OF

3.6 4

SATISFACTION RATING

CFP EDUCATION PROGRAM + PROFESSIONAL DESIGNATION RESULTS

$109,966BEFORE

$132,347AFTER

The CFP® certification was created by the College for Financial Planning in 1972 as the financial industry’s first comprehensive personal financial planning credential. The certification is now currently maintained and issued by the Certified Financial Planner Board of Standards Inc., with more than 65,000 active practitioners and 200 registered programs.

YEARS OF AGE

60%

33%

40 – 5950 – 59

MEN

75%WOMEN

25%

EXPERIENCE

15 –19 years

CERTIFICANT 5-10 yrs 20%AV E R A G E E A R N I N G S I N C R E A S E

MEN

84%WOMEN

16%

$135,812BEFORE

$170,132AFTER

YEARS OF AGE

55%

28%

40 – 59under 40

5 –9 yearsEXPERIENCE

DESIGNEE 1-4 years

The Accredited Asset Management Specialist SM program was developed in 1995 to help advisors develop stronger client relationships and give comprehensive financial advice with a specific focus on investment management.

25%

AV E R A G E E A R N I N G S I N C R E A S E

$106,934BEFORE

$117,021AFTER

YEARS OF AGE

67%

NONE

50 – 59under 30

5 –9 yearsEXPERIENCE

MEN

48%WOMEN

52%

DESIGNEE 1-4 years

The Accredited Domestic Partnership Advisor SM designation was created in 2009, and is the nation’s first financial designation specifically designed for advisors looking to provide financial advice to LGBT individuals as well as heterosexual couples who have chosen not to marry.

9% AV E R A G E E A R N I N G S I N C R E A S E

The Accredited Portfolio Management Advisor SM program was created in 2010 to better educate advisors on the process of creating, augmenting, and maintaining profitable client portfolios.

$71,891BEFORE

$101,677AFTER

10 –14 yearsEXPERIENCE

MEN

90%WOMEN

10%

YEARS OF AGE

21– 29 30 – 39

40 – 49

50 – 59

60+ 20%

DESIGNEE 1-4 years

41%

AV E R A G E E A R N I N G S I N C R E A S E

Created in 2005, the Accredited Wealth Management Advisor SM designation focuses on providing advisors with the tools to better handle the unique needs of high net worth clients.

$93,484BEFORE

$129,375AFTER

10 –14 yearsEXPERIENCE

MEN

87%WOMEN

13%

YEARS OF AGE

62%

20%

40 – 59under 40

DESIGNEE 1-4 years

38%

AV E R A G E E A R N I N G S I N C R E A S E

The Chartered Mutual Fund Counselor SM program was created via a partnership with the College and the Investment Company Institute (ICI) in 1995. The CMFC® designation is the nation’s only recognized mutual fund credential.

$62,200BEFORE

$75,780AFTER

YEARS OF AGE

69% 40 – 59

10 –14 yearsEXPERIENCE

MEN

94%WOMEN

6%

DESIGNEE 1-4 years

22%

AV E R A G E E A R N I N G S I N C R E A S E

$104,680BEFORE

$122,467AFTER

10 –14 yearsEXPERIENCE

MEN

77%WOMEN

23%

YEARS OF AGE

29%

23%

30%

50 – 5940 – 49under 40

DESIGNEE 1-4 years

Created in 1995, the Chartered Retirement Planning Counselor SM designation is the nation’s premier comprehensive retirement planning credential with more than 23,000 graduates.

17%

AV E R A G E E A R N I N G S I N C R E A S E

$105,910 BEFORE

$126,085 AFTER

YEARS OF AGE

81% 40 – 59

10 –14 yearsEXPERIENCE

51% 49%MEN WOMEN

DESIGNEE 1-4 years

Created in 1995, the Chartered Retirement Plans Specialist SM program educates advisors on the process for building and maintaining business retirement plans.

19%AV E R A G E E A R N I N G S I N C R E A S E

In 1985 the College created the Foundations in Financial Planning SM

Program – which leads to the Registered Paraplanner SM designation –to educate front-line employees and support staff on the basics of personal financial planning.

$40,193$46,447

BEFORE

AFTER

5 –9 yearsEXPERIENCE

YEARS OF AGE

41% under 40

18% 82%MEN WOMEN

DESIGNEE 1-4 years

16%AV E R A G E E A R N I N G S I N C R E A S E

The College began offering graduate degree programs in 1990. These programs build on the knowledge from other credential-based programs and combine it with real-world scenarios and case studies. The College is currently home to three MS programs: the Master of Science in Personal Financial Planning, the Master of Science in Finance, and the Master of Science in Finance, Financial Analysis major.

$230,818BEFORE

$274,681AFTER

20 –24 yearsEXPERIENCE

MEN

85%WOMEN

15%

YEARS OF AGE

82%

54.5% 50 – 59over 40

19%AV E R A G E E A R N I N G S I N C R E A S E

AAMS® MSAPMA® AWMA® CFP® CRPC® CRPS® RP®

19%25% 9% 41% 38%

CMFC®

22%20% 17% 19% 16%

A V E R A G E I N C R E A S E I N R E S P O N D E N T E A R N I N G S A C R O S S T H E B O A R D

SOT | 2014

300k

250k

200k

150k

100k

50k

0k

ADPA®

Methodology

A series of questions was developed to inquire about planner demographics including age, sex, experience, and earnings. The survey was administered in cooperation with Discovery Database, which provided a list of recipients for our financial planning survey.

We also sent the survey to recent graduates of our own CFP Certification Professional Education Program, each of our professional designation programs, and Master of Science degree programs.

A B O U T T H E 2 0 1 4 S U R V E Y O F T R E N D S

Certified Financial Planner Board of Standards Inc. owns the marks CFP, CERTIFIED FINANCIAL PLANNERTM, and the federally registered CFP (with flame design)® in the U.S., which it awards to individuals who successfully complete initial and ongoing certification requirements.

INTERESTED IN LEARNING MORE ABOUT THE COLLEGE FOR FINANCIAL PLANNING AND ANY OF THE CREDENTIALS COVERED IN THE SURVEY OF TRENDS? VISIT WWW.CFFPINFO.COM

Procedure

An e-mail letter of invitation, along with a link to the survey, was sent to the various credential holders. As compensation for their efforts, the respondents were offered a free Code of Ethics online class.

The deadline for accepting surveys was 11/1/13. 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. There were 927 total valid responses for the Survey, although not every respondent answered every question.

Survey Results

In addition to the demographic information in the previous pages, the survey contained questions about advisor client bases, method of earnings, and type of practice.

If you have any questions about the survey or the results, contact the College at: cffpresearch@cffp.edu.

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2014 SURVEY of TRENDS I N T H E F I N A N C I A L P L A N N I N G I N D U S T R Y