As a Financial Advisor, you use your vast investment knowledge and expertise to help others invest money for their future. Clients typically seek out your services for retirement planning. You assess their financial needs and then determine the best investment strategies for them.
A thorough understanding of tax laws and insurance regulations is necessary, as the advice you provide may have a significant impact on the financial well-being of your clients. Many Financial Advisors are self-employed, although they remain affiliated with a major investment company for name recognition and security. However, if you’re self-employed, your income is greatly dependent on your ability to recruit clients and market your services.
What is the average salary of a Financial Advisor?
According to the U.S. Bureau of Labor Statistics, the average salary of a Financial Advisor was $90,530 annually, as of May 2016. The lowest-paid 10 percent of Financial Advisors earn less than $41,160 per year, and the highest-paid 10 percent earn more than $208,000. The middle 50 percent of Financial Advisors make between $57,460 and $160,490 annually, so there’s plenty of room for growth while earning a modest salary.
Financial Advisor income is typically based on a percentage of the total investment overseen. For example, a Financial Advisor working with a client’s investment portfolio totaling $100,000 may earn one percent of the total amount invested annually. This payment schedule ensures that the more money the client earns on his investment, the more money the Financial Advisor receives — a great incentive to make the wisest investment choices possible.
The five highest-paying states for Financial Advisors are New York, California, Maine, New Hampshire and District of Columbia. Financial Advisor income also varies greatly depending on the metropolitan area. For example, working in the San Francisco, California metro area can earn you an average salary of $161,410 annually, while working in Montgomery, Alabama provides an income of $185,120.
What is the job outlook for Financial Advisors?
The expected job growth for Financial Advisors is faster than average, according to the U.S. Bureau of Labor Statistics. The field is competitive, especially for new Financial Advisors. However, as much as 14 percent growth in the industry is expected, as the aging U.S. population prepares for retirement.
Careers You May Like
Monitor hedge funds to ensure the highest profits.
Counsel clients on good money management practices.
Recommend financially sound companies to invest in.
Monitor real estate market conditions to help sales.
Gather and assess financial data to ensure fruitful deals for your company.