| This study examines the role of new knowledge as a predictor of earnings and changes to practice recommendations in new professions; specifically, the financial planning profession. Currently, there are no degrees, licenses, experience, or certifications required to practice financial planning. That has resulted in well over one million individuals with widely disparate backgrounds and credentials currently promoting themselves as financial advisors (or similar appellations). Further, there are more than 80 financial planning designations extant, many of which are sponsored by organizations touting that theirs is the only designation necessary and sufficient to practice as an advisor.; The researcher isolated three comprehensive financial planning designations, Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), and Personal Financial Specialist (PFS), and analyzed the effects of attaining the designation (a proxy for new knowledge) on these practitioners' earnings and practice recommendations. Outcomes were compared among the three designations and with practitioners who hold none of the three designations. An email survey was sent to nearly 50,000 financial planning practitioners. Over 2,000 responses were received, of which 1,806 were deemed usable. The researcher quantitatively and qualitatively analyzed those responses to test the theories that (1) new knowledge is associated more than degrees, experience, or credentials with higher earnings and changes to practice recommendations, and (2) the earnings effects of new knowledge are moderated by planner reliance on salaries.; The results of the study indicate that new knowledge obtained through pursuing designations is associated most with CFP earnings and, qualitatively, with greater comprehensiveness and integration for CFP and ChFC practice recommendations. Further, the effects of new knowledge on earnings were shown to be moderated by planner reliance on salaries. Finally, new knowledge was shown to have more effect on earnings than experience or the credibility of credentials, although the latter two variables were shown to have significance. |
