Have you always had an interest in finances and helping others? If so, the job of a personal financial advisor may be an ideal occupation for you. As a financial advisor for individuals and families, you would meet with clients to determine their financial needs and goals, help them understand the financial options available to them, make recommendations on savings or investment opportunities, help clients plan for anticipated and unanticipated, monitor client’s investments, and more. This occupation is expected to grow and have good job security for many years to come. Many personal financial advisors work 40 hours per week or more on a regular basis. If you would like to learn more about this occupation, read on. You will learn everything you want to know from a complete personal financial advisor job description to a financial advisor salary.
Overview of a Personal Financial Advisor Salary
As of May 2014, the median annual salary for personal financial advisors was $81,060 or $38.97 per hour. The lowest earning 10% personal advisors earned an annual salary of less than $35,500, whereas the highest earning 10% of personal advisors earned an annual salary of more than $187,200. The median annual Financial Advisors salary is notably higher than the average median salary for all occupations combined. Personal financial advisors who worked in other financial investment areas earned the highest annual salaries at $91,740, those who worked in brokerage and securities earn annual salaries of $89,880, personal advisors who worked in management earned annual salaries of $80,270, financial advisors who worked in technical, scientific, or professional services earned annual salaries of $75,890, and advisors who worked in areas related to the remediation of credit earned the lowest annual salaries at $60,710. Personal advisors who work for financial firms often earn additional compensation through bonuses.
Earning Factors of a Personal Financial Advisor
For a personal financial advisor, annual salaries may vary for several reasons. As previously mentioned, some advisors work for firms that offer bonuses based on work performance and results. Also, some advisors are self-employed so they determine their own salaries. Some advisors earn commission by selling programs or financial products to their customers. As is the case with many other professionals, advisors’ salaries may be influenced by years of experience, level of education, and the location in which they are employed. The longer an individual is employed as an advisor, the higher their salary tends to be.
Financial Advisor Job Description
A career as an advisor is ideal for people who like assisting others with their finances and their financial planning for the future. If you want to become a financial advisor, it is important that you enjoy working with people as this is a large part of the job. You should also be interested in finances and good at mathematics. It is common for financial advisors to work a minimum of 40 hours each week. However, many advisors end up working over 40 hours in a week. These advisors may work evenings or weekends in order to accommodate clients’ schedules. Advisors may also work extra in order to find new clients. Although these advisors typically work in offices, they may travel to attend industry conferences. Overall, the job of a personal financial advisor is commonly viewed as being less stressful and intense than many other professions.
A typical advisor description contains the following items:
- Meet with clients and find out what their short and long term financial goals are
- Educate and answer clients’ questions about financial services and opportunities
- Help clients make decisions about what investments are best suited for them and their needs
- Help clients determine what types of investments they should make for future life circumstances (both anticipated and unanticipated)
- Monitor clients’ investments and make changes whenever necessary or requested by clients
Job responsibilities may differ slightly depending upon the specific area of personal financial advising an advisor works in. Some advisors are self employed, so they have greater control over what areas of personal finance they work in.
A financial advisor should have these important qualities and characteristics:
- An advisor must have solid analytical skills as they must analyze a variety of information in order to determine what financial investments and plans will be best for their clients
- Since advisors are almost constantly working with numbers and equations, it is vital that advisors have strong mathematical skills
- Communication skills are very important as pfas work with clients on a daily basis and must be able to communicate financial recommendations in an understandable manner
- Advisors should have good sales skills in order gain customers and sell their financial products and services
- It is important for advisors to have strong people skills and a friendly demeanor. They must be able to make clients
- feel comfortable discussing their finances and potential life circumstances
Financial Advisor Job Outlook
The personal financial advisor job outlook looks very good according to the BLS. For certain advisors, the employment rate is expected to grow by 30% between 2014 and 2024. This rate of growth is much faster than the average anticipated growth of all occupations combined. It is anticipated that there will be 73,900 financial advisor jobs created between 2014 and 2024. As of 2024, there could be 323,200 financial advising jobs in the United States. As a large portion of the population moves closer to retirement, they will be looking for financial planning advice from personal financial advisors. This will help with job growth and security within this profession. As companies move their employees to individual retirement plans from pensions, the services of financial advisors will be needed as people will require assistance in retirement planning.
Now, we will cover the personal financial advisor education requirements necessary to qualify for these positions.
Financial Advisor Education Requirements
A personal financial advisor education is most commonly a bachelor’s degree from an accredited college or university. A degree in accounting, mathematics, economics, law, or business is beneficial to individuals who want to pursue a career as a financial advisor. It can be beneficial for individuals who plan to work in this field to take classes in financial investment, risk management, taxes, and more. Once out of college, it is common for individuals to receive training on-the-job. Senior advisors guide and oversee the work of newly hired advisors. This advisory and training period typically lasts 1 full year or more in some instances. Depending on the types of policies, services, and advice advisors provide dictates what types of licenses they need to secure. Advisors must also be registered with various regulatory boards that are determined by the location and size of the company they are employed by. There are also certifications that advisors can pursue to give themselves additional knowledge and credentials. Some of these certifications cannot be earned until an individual has a minimum of 3 years of experience working as a financial advisor. They must also pass an exam and agree to a specific set of ethics.
Personal advisors who want to be promoted to management positions should considering pursuing a master’s degree in a related field of study. Higher level of education can also prove beneficial by attracting new clients.
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