Advisors with CLU, ChFC designations earn more

Financial advisors who earn a CLU earn 22 percent more than their peers without the designation, and advisors with a ChFC earn 51 percent more, according to a new report.

The American College published this finding in a summary of results from the institution's "2013 Designation Outcomes Study." The report gathered information about nearly 32,000 financial advisors to ascertain the impact of financial designations on advisors' earnings and productivity, early career success, retention, field leadership and compliance.

By year nine in the business – moving into mid-career – 13.8 percent of the advisors in the study hold either a CLU, a ChFC or both. These advisors, the survey reports, have 40 percent higher aggregate productivity than those with no designation.

Those earning the LUTCF or FSS within their first four years have earnings that average 72 percent more than those with no designation. And advisors who earn an LUTCF or FSS early in their careers but choose not to continue their education by subsequently pursuing advanced designations will see their earnings advantage erode to just 7 percent by their ninth year.

Among the report's additional findings:

  • Financial advisors who hold a CLU or a ChFC have 13 percent longer average tenure at their companies over their entire careers than those without these designations.
  • Field leaders are 59 percent more likely to hold a CLU or a ChFC as compared to their peers.
  • Advisors who complete one of the college’s skills-training designation programs (such as the LUTCF or FSS) within their first four years in the business are more likely to survive in the profession. Their average tenure is 90 percent longer than those without a designation.
  • Those earning the LUTCF or FSS within their first four years have earnings that average 72 percent more than those with no designation.
  • Advisors who earn an LUTCF or FSS early in their careers but choose not to continue their education by subsequently pursuing advanced designations will see their earnings advantage erode to just 7 percent by their ninth year.
  • Financial advisors who hold a CLU or a ChFC have 13 percent longer average tenure at their companies over their entire careers than those without these designations.
  • Field leaders are 59 percent more likely to hold a CLU or a ChFC as compared to their peers.

Related Practice Management Resources

Powered by

Comments

Advertisement. Closing in 15 seconds.