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Financial Planners and Investment AdvisorsProduct Type: Market Research ReportPublished by: First Research, Inc. Published: April 2008 Product Code: R3470-1280 Description About 10,000 firms in the US provide financial planning and investment advice to individuals and businesses, with combined annual revenue of $15 billion. Large companies include Value Line, Morningstar, and units of financial services companies. The industry is concentrated at the top, with the eight largest firms accounting for a quarter of industry revenue, but is otherwise highly fragmented. A large local firm may have 30 employees and generate $10 million of annual revenue. COMPETITIVE LANDSCAPE Demand is driven by consumer income and wealth, and by demographics. The profitability of individual firms depends largely on effective marketing. Large companies have some advantages in providing expertise in a wider range of investment options, and may charge lower fees. Small companies can compete successfully by providing better service and advice. In small and large firms, annual average revenue per employee is about $200,000. PRODUCTS, OPERATIONS & TECHNOLOGY Financial planners help customers put together a plan for managing their financial resources; investment advisors suggest specific investments. About 60 percent of industry revenue comes from providing services to individuals. Financial planners help individuals form a plan that may include debt, asset, college, retirement, estate and tax planning, and may periodically check with the client to see how well the plan is being followed. Much of the planning revolves around an income and spending budget, with advice about the types of financial investments suitable for the client. For wealthy individuals, and for organizations like trusts, estates, and charitable foundations, financial planners offer more ... Table of Contents
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