Why the Center
Interest in and demand for personal financial advice has never been greater in the U.S., as more Americans assume responsibility for managing their own financial futures.
With the aging of the Baby Boomer generation, an estimated 10,000 Americans retire every day, and $30 trillion in wealth is projected to transfer to the Millennial generation. [1], [2]
As a result of these burgeoning needs, the U.S. Department of Labor’s Bureau of Labor Statistics forecasts a 7% increase in the employment of personal financial advisors between 2018 and 2028, significantly faster than the average growth across all occupations (4%). [3]
However, the financial planning profession currently faces a number of critical challenges to meeting this rising need for financial advice:
Diversity: A Workforce Not Reflective of the Public It Serves
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- African Americans represent only 7.3% of financial advisors, yet comprise more than 13% of the U.S. population. [7],[8]
- Latinx represent only 7.7% of financial advisors, yet comprise more than 17% of the U.S. population. [7],[8]
- Only 23% of CFP® professionals are women, even as women control more than a third of wealth in the U.S. [9],[10]
Financial Planning Profession Needs an Academic Home
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- With the growing number of CFP Board-Registered Programs (over 50% growth since 2010), there is a shortage of qualified faculty. [11]
- There are limited opportunities for faculty to publish research in financial planning and related disciplines. [12]
A Collaborative Solution
To achieve our vision of every American having access to competent and ethical financial planning advice, we need a larger pipeline of young, diverse and workforce-ready talent to provide that advice. To solve this problem systematically, we need to work together. CFP Board Center for Financial Planning is convening stakeholders from across the profession to pool our collective resources, talent and insights to challenge the status quo and drive innovative, systemic solutions to advance the profession.
Addressing Unmet Challenges
Unique Value of the Center
The challenges facing the profession are larger than any one organization, financial services firm or individual. CFP Board Center for Financial Planning is uniquely positioned to respond to these challenges by:
- Unifying firms, educators, researchers, practitioners and other industry stakeholders to focus collective efforts and resources;
- Conducting independent third-party research to inform research-based solutions;
- Leveraging CFP Board’s network of more than 220 academic institutions educating the financial planners of tomorrow; and
- Serving as a clearinghouse for relevant research and benchmarking data.
Footnotes
[1] http://www.pewresearch.org/daily-number/baby-boomers-retire/
[2] Accenture https://www.accenture.com/t20160505t020205z__w__/us-en/_acnmedia/pdf-16/accenture-cm-awams-wealth-transfer-final-june2012-web-version.pdf
[3] http://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm
[4] Cerulli Advisor Metrics 2014 http://www.reuters.com/article/2015/02/11/wealth-cerulli-advisor-headcount-idUSL1N0VL23920150211
[5] Ibid. http://www.investmentnews.com/article/20150122/FREE/150129964/adviser-pool-continues-to-drain-losing-2-in-2013
[6] CFP Board
[7] http://www.bls.gov/cps/cpsaat11.pdf
[8] http://quickfacts.census.gov/qfd/states/00000.html
[9] CFP Board
[10] Boston Consulting Group https://www.bcg.com/documents/file56704.pdf
[11] CFP Board
[12] Ibid.
For help navigating the Census Bureau website, please visit: http://backgroundchecks.org/us-census-guide-how-to-get-the-most-out-of-census-gov.html