The variety of feminine licensed monetary planners elevated to an all-time excessive of 20,633 in 2020 — a 3.1% acquire from 2019, based on the Licensed Monetary Planner Board of Requirements. The variety of Black and Hispanic CFPs grew 12.6%, however these planners nonetheless make up a sliver of the full CFP inhabitants.
The expansion price of the feminine CFP inhabitants fell barely from 2019, when the quantity rose 4% to prime 20,000 for the primary time.
Girls accounted for 23.3% of CFPs final yr, based on the CFP Board.
Based on the CFP’s WIN program, launched in 2013, the share of planners who’re girls has remained round 23% for the final a number of years. A white paper launched after the launch of this system stated the expansion of ladies within the enterprise “will probably be a marathon not a dash.”
Extra Work to Be Finished
There’s nonetheless extra work that must be carried out to girls to the sphere, based on Melissa Brennan, a monetary planner at ARS Non-public Wealth in Houston, Texas.
“I feel the success of collegiate monetary planning packages has actually helped draw extra girls into the enterprise,” she informed ThinkAdvisor on Tuesday. “After I began 20 years in the past, monetary planners got here from the insurance coverage or funding world and wished to supply their shoppers extra, so that they grew to become monetary planners. Many of the insurance coverage and funding folks 20 years in the past have been males.”
Brennan recalled she had a gross sales affiliate at a mutual fund occasion inform her as soon as: “If you wish to know which path to go, comply with the gray-haired males within the blue fits.”
“Nonetheless, “now that faculty college students can enroll in monetary planning packages and get bachelor’s and grasp’s levels in monetary planning, we’re drawing in a considerable variety of younger girls [to] the sphere,” she stated.
Though “we nonetheless have a while to go earlier than we see the numbers even out,” she stated, “we’re making strides in the appropriate path.”
There are a ”bigger proportion of feminine to male CFP practitioners” within the Dallas-Fort Price space “than in most areas of the nation, however we nonetheless have work to do breaking down gender stereotypes within the monetary companies business,” she added.
Black, Hispanic CFPs
In one other constructive signal for 2020, the variety of Black and Hispanic CFP professionals elevated to three,688, up 12.6% from 3,274 in 2019, CFP Board stated. The expansion price was nearly 5 instances that of all CFP professionals.
The variety of Black CFPs grew to 1,493, however they nonetheless solely accounted for 1.68% of planners. The variety of Hispanic CFPs elevated to 2,170 (2.46% of CFPs). There have been solely 25 biracial black and Hispanic CFPs (.028% of CFPs).
Jeff Levine, Buckingham Wealth Companions director of superior planning and Kitces.com director of advisor training, tweeted: “Granted, it’s 12% development on a small quantity, however hey… it’s progress!”
“The rise within the variety of CFP professionals of coloration displays the robust efforts by CFP Board and the Heart for Monetary Planning to create a extra numerous and sustainable monetary planning occupation,” based on CFP Board CEO Kevin R. Keller.
The overall variety of CFP professionals reached an all-time excessive of 88,726 final yr, a 2.7% enhance from 2019.
— Try We Asked, Advisors Answered: How Can the Industry Increase Diversity? on ThinkAdvisor.