Certifications give advisors a clear economic edge, IWI says

Certifications give advisors a clear economic edge, IWI says
The institute's new research indicates advisors who've earned CIMA, CPWA, and RMA designations outclass their non-credentialed rivals.
FEB 28, 2025

If you want to out-earn your rival advisors, you've got to out-learn them first.

That's the bottom line from a new report by the Investments and Wealth Institute, which broke down how advisors with various certifications tend to do better against advisors with no acronyms after their name.

Drawing from a survey of over 1,000 advisors, the research conducted in partnership with CEG Insights found those who held all three certifications from IWI – the Certified Investment Management Analyst, Certified Private Wealth Advisor, and Retirement Management Advisor marks – had the highest average income, earning nearly $762,000 annually. That figure is about one-third higher than advisors who do not have any of the institute’s certifications.

"Advisors who hold all three Institute certifications have positioned themselves for the highest level of success," the report said, highlighting the advantage for those it called "triple threat" advisors.

Even those with just one of the certifications saw an income boost. CPWA holders, for example, earned an average of $721,154 annually, while those without an institute designation earn an average of $569,569. The study also found that a select group of institute-certified advisors consistently earn more than $1 million per year.

The billion-dollar advisor advantage

Beyond that, the research found that certified advisors attracted higher-net-worth clients. Those with at least one IWI certification were more likely to serve ultra-high-net-worth individuals and families with more than $25 million in assets.

"Advisors with one or more Institute certifications are more likely to have clients who are at higher levels of wealth," the report said.

Among CIMA and CPWA holders surveyed, almost a third said their clients were UHNW investors on average, compared with just over 23 percent of non-certified advisors. Those holding the CIMA or CPWA designation were also more likely to manage $1 billion or more in assets.

At a team level, the report said advisor groups with at least one of the institute’s certifications oversee, on average, $267 million more than those without a single IWI designation holder on the bench.

A broader service menu

Advisors with certifications were also able to differentiate themselves by offering a broader range of financial services. The study found that they were more likely to provide wealth preservation strategies, tax-efficient investing, and estate planning – services that are increasingly in demand among high-net-worth clients.

While CPWAs focused on tax mitigation and estate planning, RMA holders were able to specialize in retirement income strategies. The study also found that more than 64 percent of certified RMAs incorporated digital tools to engage younger family members and help clients with intergenerational wealth transfers.

Well-placed for multigenerational planning

The report noted that institute-certified advisors are well positioned to help families manage wealth across generations. They are significantly more likely than non-certified advisors to implement family governance programs, educate heirs on financial management, and develop long-term wealth transfer strategies.

"Advisors who hold RMA and CPWA certifications are particularly adept at implementing family governance and education programs – with 69.2 percent and 67.1 percent, respectively, focusing on these initiatives," the study found.

Additionally, advisors with these certifications frequently work with digital platforms to engage younger clients, which has become an important factor in retaining assets as wealth passes from one generation to the next.

What about CFPs?

The survey also looked at how advisors who were also CFPs compared with those who had IWI certifications.

It found both CFP holders and advisors with IWI designations were far more likely to manage most or all of their clients' investable assets. Meanwhile, advisors without credentials tended to manage less than three-quarters of their clients' investments.

However, the report found both advisors without an IWI designation and those who only had the CFP designation were more likely to work with clients in the mass affluent segment, who have at least $100,000 but less than $1 million in investable assets. And while institute-certified advisors used digital tools to appeal to younger members, with adoption levels between 59.49 percent and 64.4 percent, non-certified advisors and CFP-only advisors were significantly weaker on that score.

Still, a separate study by CFP Board in September suggested CFP professionals have it better than their non-certified planning peers. Aside from earning 10 percent more than other financial planners on average, it found 85 percent of CFP certificants felt high or very high levels of personal fulfillment in their roles, particularly in terms of work life balance, career advancement, and professional stability.

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