Financial Advisor Salary
As more and more people are becoming savvy in terms of keeping up with their finances, the need for trusted financial advisors will only continue to increase.
In fact, according to the United States Bureau of Labor Statistics, Americans can expect the need and subsequent increase in financial advisors to soar by as much as 27% by 2022.
That means that 60,000 new positions for the increasingly demanded occupation will need to be filled.
The demand will absolutely be there, but what kind of financial compensation can an advisor specializing in the field of finance expect?
The following is a complete guide to everything you need to know about a financial advisor salary.
What Does a Financial Advisor Do?
Financial advisors work with people who are looking to better their financial assets. Advisors can be responsible for helping a client plan for retirement or help them make decisions that will allow them to pay off their homes. They do so by providing investment ideas and provide guidelines on how to save and expand wealth. Financial advisors can be seen as personal finance assistants.
There can be more specialized fields within the career as a financial advisor. Some advisors can specialize in retirement planning, while others can focus on more of an investment-based practice. Even in a specialized field, an advisor needs to be fluent in all types of financial practices to better their portfolio.
When starting their career, a financial advisor will take part in general work. After years of experience, an advisor can transition into more specialized practices, but they will need certain licenses depending on the specialty.
This career aims to help people with major financial decisions that can impact both their present and future. No matter the financial stability of a client, an advisor will work to better the financial assets of the client.
If a family is looking to create a college fund for their child, the advisor will suggest safe investments that will yield enough money to send the child to college— without hampering the families’ current financial status.
This can be a very rewarding career, however, it can be overwhelming. Certain aspects of the job are out of the control of the advisor.
A certain investment can seem like a brilliant idea, but it may not work as planned. Suggesting the investment of a particular stock is the control an advisor has. What happens to that stock is out of their hands.
A good financial advisor will help their clients make decisions on expanding their financial assets without jeopardizing their client’s fortune.
At the very least, a bachelor’s degree is required to become a certified financial advisor. A major in finance or business is and will continue to be the most common path to take, but one could also choose economics, statistic, or mathematics as acceptable majors that can suffice as adequate paths to take on the road to becoming a financial advisor.
Although not required for most entry-level positions, some high-profile employers may insist upon a master’s degree from their financial advisor employees. This may take longer to land a job, but the salary attached to this extended schooling will only increase as a result.
With a Master of Business Administration, or MBA as it is commonly referred to, disciplines including ethics, management, and law amongst others will be focused on to produce a skilled and extremely well-rounded financial advisor that will hold the tools necessary to assist a client in as many facets of finance as possible.
Financial Advisor Salary Is Dependent on Multiple Variables
As a financial advisor, there is no clear-cut salary. The median salary range is between $57,460 and $160,490. That is a very widespread median. According to the Bureau of Labor Statistics, the average Financial advisor salary is $90,530. A very fair compensation for a job that focuses on the handling of other’s finances.
Financial advisor salary is dependent on location of operation and amount of investments an advisor oversees.
New York, Maine, New Hampshire California, and the District of Columbia are the highest paying states for financial advisors.
Why does location matter? Coastal metro areas provide the most work for an advisor and commonly have the wealthier customers.
Since a financial advisor’s job is dependent on the amount of investments they oversee, pinpointing a certain salary is difficult. The more established advisors who work in wealthy communities will receive the highest salary. New York has the highest paid financial advisors because it is a wealthy state with a very high population.
Think of this job as if it were a car salesman position. The more cars a person sells, the more money they make. Just because you have a career as an advisor, does not mean you will be paid for the title. This career is typically well paid, but it takes a lot of help to reach an established portfolio.
The company a financial advisor works for is also an import factor in determining salary. Well known companies in New York will have some of the wealthiest clientele.
Knowing the right people and having a good platform that will promote your business is necessary in this career. Advisors working for a small firm in a remote part of the country will not receive the same salary as an advisor with high exposure and access to a plethora of wealthy clients.
Financial Advisor Job Satisfaction
This is an extremely stressful job, only suitable for professionals that can keep up with a high volume of clients. The work is complex, and the job environment is less than stellar.
As a financial advisor, you are responsible for the wealth of other people. If everything goes according to plan, the advisor will make their clients money, while receiving a pretty hefty compensation. However, this is not always the case. Some clients will lose money, this is just the reality of investment-based positions.
The job flexibility of a financial advisor is average. Though advisors typically work more than forty hours per week, this is dependent on the amount of clientele and type of clientele the advisor has. The harder a person works in this career the higher the salary possibilities.
Like most commission-based careers, the potential for salary increases is high for financial advisors. The more experience in the industry directly correlates to higher pay. Depending on the company a financial advisor works for, bonuses and other performance-based benefits can be made available.
An already high salary can be supplemented with bonuses when the advisor is successful in their work.
How to Become a Financial Advisor
As already stated, financial advisor jobs are becoming more readily available. Education is obviously the first step needed to enter the field, but just because a person has the education, that does not mean they will be hired.
The quality of the education such as grades, recommendations, and internships are what is important when starting out as a financial advisor. Companies look for hard working people that already have some sort of experience in the field.
Securing an internship in college is the best way a person can become a qualified financial advisor. This will create opportunities within the company that the internship took place — while bolstering a resume for other companies looking to hire financial advisors.
Take full advantage of the opportunities a college provides. Get close to a teacher who has a career in the field or visit the school’s career office to find job or internship leads.
Though most financial advisors work for a company, advisors can work in the field of freelance. In this case, advertising your services is most important. Getting your name out there is difficult, yet necessary to create a portfolio — providing a financial advisor salary of a large company.
Financial Advisor Salary Takeaways
This is a challenging and stressful career that can, however, be fulfilling and fruitful. The financial advisor salary is high when compared to other careers.
The necessary education required is not too overwhelming, as a bachelor’s degree in finance or business will suffice. An internship helps immensely when an aspiring financial advisor is looking for employment.
There are financial advisor jobs out there. It is a rather competitive career, so the more experience a person has in the world of finance before officially entering the field, the better opportunities.
Experience is key to a financial advisor salary. The more years spent in the industry, the more diverse the clientele. The better the clientele the higher the salary.
After three years in the industry, certifications are available for financial advisors. Obtaining a certification is not mandatory, but they are recommended. Certificates such as the Certified Financial Planner (CFP) and the Personal Financial Specialist (PFS) will only help in receiving a higher salary as a financial advisor.
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