Financial advisors: you’re richer than you think

Financial advisors: you’re richer than you think

Financial advisors: you’re richer than you think With all the changes coming down the pike with CRM2, advisors have their plates more than full. However, with the holidays approaching, it’s time to reflect on how good you’ve really got it.

Woe is me seems to be the industry refrain these days as CRM2 changes continue to affect how financial advisors operate their businesses. Recently, IIAC asked IIROC for a six-month delay implementing the final phase of CRM2, currently scheduled for July 15, 2016.

On Wednesday WP questioned why the industry needs an additional six months when it’s already had more than two years to get ready. Later today we’ll speak with IIACs CRM2 expert, Barbara Emsden, about the reasons why it’s requested this delay.

But enough about CRM2. You want to know why you’re richer than you think.

The December print edition of WP discussed the results of our first annual financial advisor lifestyle survey; our sister publication, Canadian Mortgage Professional, did the same. While some of the findings are very similar between the two groups, others provided significant contrast.

Perhaps the most coincidental figure is the average amount of cash in their bank account(s): $39,000 for both financial advisors and mortgage brokers. What are the odds of that?
Now, here’s where things diverge.

According to our survey results financial advisors have investment portfolios that average $510,000, almost double those of their mortgage broker brethren.

When it comes to annual income Wowjobs says the average financial advisor in Canada earns $73,102 compared to $55,837 for mortgage specialists. Interestingly, our lifestyle survey for financial advisors didn’t gather income information, but CMP did, and those respondents averaged $132,900 in annual income, much higher than the numbers culled from Wowjobs.

Given CMPs demographic it’s not surprising its numbers are much higher than the industry average. Looking at the annual revenue of WPs top 50 advisors, it’s probable that the average annual income had we included it in the lifestyle survey, would also be more than double Wowjobs’ stats.

Additional metrics such as education, marriage and time spent on vacation all skew higher for financial advisors.

So the next time you’re feeling down, remember that you’re richer than you think.