STUDY SAYS FEE-ONLY ADVISORS BOOSTING CLIENT REVENUEFee-only financial advisors are increasing client numbers, revenue and profits at impressive rates, according to a new benchmarking study issued by the National Association of Personal Financial Advisors and produced by CPA and business advisory firm Moss Adams LLP.
The study, representing 20 percent of NAPFA member firms, showed that between 2003 and 2005, both revenue and the number of clients per firm grew at an average annual rate of 21 percent. Median assets under management increased at a rate of 30 percent. As a percentage of revenue, direct expenses (compensation for professionals) declined, and overhead expenses remained in check over the 2003-2005 period. This resulted in an average operating profit growth for the surveyed firms of 46 percent.
"Not only are the firms of NAFPA members profitable, but they are increasing their client bases and growing at healthy rates," said Peggy Cabaniss, national chair of NAPFA.
CFP UNVEILS 2006 SURVEY OF FINANCIAL PLANNING TRENDS
Financial planners who hold the CFP designation have an 80 percent level of career satisfaction and reported median earnings of $232,995, according to the College for Financial Planning's 2006 Survey of Financial Planning Trends.
The Greenwood Village, Colo.-based CFP survey also revealed that some 67 percent of financial planners are between the ages of 40 and 59, while over half (57 percent) have between 10 and 24 years of experience.
The highest mean level of earnings for holders of the CFP certificate was $427,937, reported by those survey participants with between 20 and 24 years of experience.
The poll found that the typical CFP client is a two-income couple, 55 to 64 years old, with annual gross income of between $100,000 and $149,000, and an annual discretionary income of between $10,000 and $19,999. Meanwhile, 87 percent of CFP clients expect to maintain their present lifestyle in retirement, while 60 percent of financial planners expect client savings to be sufficient to maintain that standard of living.
LINCOLN FINANCIAL LAUNCHES NEW VA
Financial services conglomerate Lincoln Financial has launched its latest variable annuity Income4Life innovation: 4Later Advantage, a benefit that, together with the i4Life Advantage feature, offers a retirement income planning strategy. It is available to Baby Boomers who are not yet ready for retirement, but are looking to the future and planning for it. It is described by Lincoln Financial as an "advanced planning tool allowing the Boomers to help forecast the investment necessary for a guaranteed minimum income stream, beginning when they need income."
IRS ROLLS OUT ONLINE 'STORE' FOR SAVINGS BONDS
The Internal Revenue Service has made available an online location to purchase U.S. savings bonds over the Internet. The Web site offers secure online purchases of Series EE and New Series (inflation-indexed) bonds with either a MasterCard or Visa credit card. Bonds are delivered by mail in about one week. The new Series I bonds, along with Series EE bonds, are available in most popular denominations: $50, $75, $100, $200 and $500 (and $1,000 for Series EE). There is a $500 issue price limit for individual orders.
Wilmington Trust Buys Pwc Unit In Cayman Islands
Financial services provider Wilmington Trust Corp. announced that it has acquired the Cayman Islands unit of PricewaterhouseCoopers Corporate Services Ltd. The unit provides company administration and bookkeeping services on the islands. Financial terms of the deal were not disclosed.
"This acquisition deepens our presence in Cayman and reflects our corporate strategy to invest in businesses with excellent potential for long-term growth," said Wilmington Trust chairman and chief executive Ted T. Cecala, in a statement.
The acquisition enhances the entity management services that Wilmington Trust provides in the Cayman Islands as part of its own Corporate Client Services business. Wilmington Trust commenced operations in the Cayman Islands in 2000 through an affiliate. Wilmington Trust said that the acquisition will add several hundred new accounts to its book of business in the Cayman Islands, and that all but one of the PwC staff members will join Wilmington Trust.
