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Advisers' paychecks rise in dismal year

Average income in industry rose to $215,345 this year, from $195,394 in 2008

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By Lisa Shidler

July 6, 2009 3:46 pm ET

Financial advisers are earning more money than they were a year ago and have also shifted more toward fees from commissions, a study released today showed.

The study from Boston-based Cerulli Associates Inc. and Greenwood Village, Colo.-based The College for Financial Planning showed that average earnings for financial advisers rose to a projected $215,345 this year, from $195,394 in 2008.

The study notes that even though average earnings were $232,995 in 2006 and $283,079 in 2007, the 2009 findings are “remarkable, given market conditions.”

The study also showed that there is a shift toward fees and away from commissions.

More than half of the respondents received most of their compensation from fees.

One-fourth (26%) of advisers were fee-only, and nearly one-third (30%) received at least half their revenue from fees.

Advisers said their clients were demanding more comprehensive financial plans and broader sets of strategies.

More than one-third (36%) of advisers said they gave clients comprehensive written plans.

Another 46% said they gave clients modular plans, both written and oral.

“As people watch their retirement savings or a child's college fund shrink, they are increasingly asking advisers for solutions to help live their lives, rather than simply grow their stock investments,” Bing Waldert, director of Cerulli Associates, said in a statement.

"That requires a more comprehensive approach with a greater emphasis on customer service and better training."

The study also found that 49% of advisers listed education as a key driver of success, compared with 38% in 2008.

The survey was sent online to advisers who had received certified financial planner designations; 390 responded.

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