Salary of a CFP
For the financial planners, two compensation methods are applicable: salaries and payouts. Few organizations offer salaries to their financial planners. Others compensate depending on a percentage of the revenue that they generate, this means based on the productivity and business development success, their financial planners are rewarded.
As per Forbes advisor, a survey was conducted in 2018, where on an average a financial planner charged $235 per hour. An average of $1,871 (between $1,800 and $2,500) was charged for a comprehensive financial plan. For regular service, an annual average of $5,528 per year was charged.
According the CFP Board, based on years of experience, their income differs. For a CFP with 5 to 10 years of experience, their annual average income is $152,000. For 10 to 20 years of experience, a CFP can be paid an average amount of $206,000. Whereas, for CFP professionals who have more than 20 years of experience, earn a median income of $250,000.
A management fee can also be charged by the CFPs to their clients based on the asset value in their account. As per Advisory HQ survey, an average annual management fee ranges from 0.59% to 1.18%.