Financial Advisor Salary By Experience
|Experience Level||Low Hourly||High Hourly||Low Annual||High Annual|
|20 Years +||$14.77||$116.56||$30,720.00||$242,440.00|
Financial advisors are professionals who provide consulting services on how you spend and invest your money, based on financial analyses, economic research, and market projections. A personal financial advisor uses asset allocation techniques to promote financial growth. A personal financial advisor typically represents individuals, while a few prefer to work with both individuals and commercial organizations.
In most cases, financial advisors encourage clients to invest their finances on stock, bonds, mutual funds, real estate investment trusts (REITs), options, futures, notes, and insurance products. Because of the risks involved in these kinds of transactions, a financial advisor also informs their clients of the probability of losses that may occur and the measures in place to limit risks to an acceptable level.
Aside from financial planning and investment, financial advisers can also provide consulting service for tax-related concerns and sell insurance policies provided they have adequate certification and training.
The term personal financial advisor is often used interchangeably with other professional titles like wealth manager, financial planner, investment representative, or stock broker. While the terms may be different, the responsibilities shouldered by each professional are almost the same as well as the ultimate goal - to maximize earning potential of the client's finances while limiting risks and losses.
A personal financial advisor usually operates as a self-employed professional. A significant number of them are also connected to finance and banking industries. Others are found working with insurance carriers and brokerages.
About 161,790 personal financial advisors are currently at work across the country as of May 2011. These professionals are earning a median salary of $66,580 per year. Financial advisors who are in the top 10% of earners are generating an income of over $187,200 per year while those in the bottom 10% are making under $32,810 annually.
About one-fourth of the total number of active and working personal financial advisors in the United States, or roughly 55,820, are working as freelance or independent financial consultants and representatives. They are also the highest-earning group, getting an average financial advisor's pay of $107,620 a year. The second highest concentration of financial advisors are connected with securities companies and brokerages, where around 40,660 financial advising specialists are making $100,430, still higher than the national average.
Apart from independent financial advisors, those who are working in management, scientific, and technical consulting services providers are the second highest-earning lot, getting paid with an average financial advisor income of $107,060 annually. Financial advisors working for accounting, tax preparation, bookkeeping, and payroll firms make a financial advisor pay of $100,990 on a yearly basis.
It is important to understand that financial advisor pay rates vary depending on the industry a professional advisor works in. Also, each employer has its own standards and requirements in place that influence the pay grade of a financial advisor. Working conditions, benefits, stress levels, and working environments are among the factors that help in determining a financial advisor's wage rates.
Personal financial advisors usually have a bachelor's degree in order to qualify for the position. There is no specific requirement as to what field one should take to become a financial advisor. However, those with college degrees on economics, finance, business management, and accounting have solid backgrounds in finance management and therefore have brighter employment prospects compared to other degree holders.
Depending on the nature of their financial practice, a personal financial advisor is required to seek certification from a registered organization before they can go and practice their craft. A financial advisor can either be a stock broker, investment adviser representative, or an insurance provider, all positions are regulated by law and thus a personal financial advisor must seek certification.
Among the numerous designations given to a financial advisor are:
The said designations and certifications are given out by duly recognized financial advising and planning organizations, including the Chartered Financial Analyst Institute, the Certified Financial Planner Board of Standards, and the College for Financial Planning. Each designation has its own set of requirements and qualifications.
The Bureau of Labor Statistics reports that the personal financial advisor occupation will experience a 32% growth from 2010 to 2020. The bureau describes this growth as faster than the average for all occupations, which is just 14% nationwide.
People who will enter the retirement age will be the driving force for this growth as more of them will want to secure their future by investing their pensions and retirement funds prior to their retirement. Personal financial advisors will see their significance increase as demand for the expertise will be aggressive.
The recent economic meltdown the country has experienced will also have an effect on people outlook about money and financial security. As private corporations and government offices face shortfalls in pension funds, individuals are likely to hire personal financial advisors to help them make calculated decisions on how they can maximize their money's earning potential.
Most financial advisors start their careers in financing and banking firms, brokerages and insurance carriers. But with experience and knowledge, the majority will find success as independent financial advising consultants. Experience, education, and expertise can increase a personal financial advisor's chances of getting promoted to high paying positions in insurance or accounting firm.
Financial advisors can easily advance in their careers by taking continued education in their chosen financial practice. Advisors who function as stock brokers can gain more knowledge and expertise by taking stock market seminars. The same goes to other personal financial advisors who are delving into other areas of financial consulting and planning.
Financial advisors who decide to take masters education may find it easy to attract more clients and build a large clientele. Connections with other players in the industries, such as banks, financing firms, and insurance carriers can widen one's network and increase potential for earning higher personal financial advisor salary.
Other occupations closely related to the financial advisor profession are listed below:
Telling people what they should do with their money is a tough assignment, especially during these hard economic times. But that is what makes the personal financial advisor profession exciting, and rewarding if you make the right call. If you know how to play the numbers game and make money work, then the financial advisor job can be a lucrative and rewarding profession.