RJ and Makay

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U.S. consumer spending slowed in August as incomes decreased for the first time in almost two years, the Commerce Department reported last week.  Purchases in August rose 0.2% after a 0.7% increase in July, while income decreased 0.1%.  Take-home pay, adjusted for prices, fell 0.3%, the third decline in the past five months.

A new salary survey by the Financial Planning Association (FPA) confirms it: Having those letters after your name makes a difference in how much income you make as a financial advisor. And some designations provide more of an advantage than others.

For example, a senior financial planner with the Chartered Life Underwriter (CLU) or Chartered Financial Consultant (ChFC) credentials earns 28% to 31% more than a Certified Financial Planner (CFP) certificant, according to the survey. Indeed, median annual compensation for senior planners with a ChFC or CLU was $130,000 to $133,000 compared with $101,000 for those with a CFP. Among sole practitioners, median annual compensation ChFCs and CLUs was $83,000 to $89,000 versus $80,000 for CFPs.

With the recession and bear market still fresh in their minds, Americans are increasingly opting for savings vehicles with safety features such as a guaranteed income stream in retirement. Their need for more security has pushed demand for annuity products, especially variable annuities, to record highs.

For example, fourth-quarter variable annuity sales totaled $37.6 billion, a 10% increase from the previous quarter and an 18% gain from the fourth quarter of 2009, reports the Insured Retirement Institute (IRI). Variable annuity assets reached an all-time high of $1.5 trillion last year, the IRI adds.