Survey Says that Financial Advisors Are ProsperingPosted by in Blog on December 12, 2011
Here’s some positive economic news, for a change. A new study shows that financial advisors are continuing to grow their practices, take in more clients, and make more money.
RegisteredRep’s 2011 Compensation Survey reveals that 78 percent of the people surveyed took in more money in 2010, and 84 percent of them said they expect to take in even more in 2011.
However, there is one caveat to the good news. RegisteredRep reports that “the industry is also training advisors to expect comp ‘candy’ all the time in the form of recruiting and retention bonuses and, as we know, candy all the time is not healthy.”
The survey also discovered that the gap between different types of investment advisor businesses, such as “wirehouses, regional firms, independent broker-dealers (IBDs), RIAs and banks” is narrowing, with many of them using similar terms to describe themselves, and offering similar types of services.
So who makes the most? The article says that “IBD advisors report the highest overall compensation, with a median of $220,000, compared to $199,000 for RIA advisors and $173,000 for wirehouse advisors.” The article also notes that “regional firms had average income of $164,000 per advisor and bank brokerages generated median income of $139,000. “
Interestingly, the survey also discovered that “take-home pay is surprisingly similar for wirehouse advisors and IBD advisors, after expenses.”
Written by Lisa Swan