Right now, the appetite for that soup is growing, and if Social Security is privatized, the hunger may become nearly insatiable.
A new survey from the College for Financial Planning in Greenwood Village, Colorado, in conjunction with the Denver-based Financial Planning Association, shows that the median annual gross earnings of CFPs (certified financial planners) rose 56% last year, to $219,000 from $140,000. Annual net earnings for CFPs in the same period jumped 33%, from $95,000 in 2003 to $142,000 in 2004.
Fifty-four percent of those respondents say their income results from a combination of fees and commissions, while 29% report that their income derives from fee-only services. They also say they�re working harder for that money, however, writing 30 plans last year compared to 21 plans in 2003.
A 2003 survey of its students and designees by The American College in Bryn Mawr, Pennsylvania, indicates that CLUs (certified life underwriters) and ChFCs (chartered financial consultants) earn 34% more than their colleagues without those credentials. And those who hold both designations earn 40% more, according to Eric Gordon at the American College.
Peggy Cabaniss, CFP and chair-elect of the board of the National Association of Personal Financial Advisors in Arlington Heights, Illinois, says, 'With a college degree it is possible to get an entry-level job at a financial planning or money management firm. But to go further you really need a CFP, CLU or CFA.'
It's More than Buy Low, Sell High
With the right qualifications, there's plenty of work to go around. In the decade between 1993 and 2003, the financial assets of U.S. households rose 94.3%, from $15.7 trillion to $30.5 trillion, according to the Financial Services Fact Book from the Insurance Information Institute. And from 2002 to 2003, household debt rose 10.6%, while business debt rose 3.7%. It�s clear, then that individual and corporate entities increasingly need help managing their money.
Anne Kern, a spokesperson for the Certified Financial Planner Board of Standards in Denver, says that as businesses and individuals increase their investing in a renewed economy, as baby boomers start to retire and as distribution of the boomers' parents' assets becomes an issue, the demand for personal financial advisors will increase.
In fact, even before President Bush started talking about taking Social Security private, the Bureau of Labor Statistics projected growth in the field through 2012. No wonder Fast Company magazine just put personal financial advisor at the head of its list of 25 top jobs.
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