l adviser assists clients in determining the best ways to manage their money. These specialists create a plan for clients to help them make wise investment decisions, budget their funds, provide assistance on other financial matters, and confirm insurance needs are met. Most meet with their clients regularly to keep their finances on track and support budgets and changing goals.
Job Description
Financial advisors, also called financial planners, advise how others should handle their money. This is a sensitive subject for some. Building a trusting relationship with clients is a critical component of succeeding in a financial analysis and planning career. To help build their reputation as knowledgeable and trusted advisors, most financial planners become certified through the Certified Financial Planners (CFP) Board. If you are keen on a financial planning career, it is important to understand a financial planner’s common job tasks.
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How Much Do Financial Advisors Make
Careers in the U.S:
The average annual compensation of a financial adviser is $121,770, according to the U.S. BLS in May 2019. Salaries range greatly, spanning from $41,590 to more than $157,710. Financial adviser salaries vary throughout various areas of the nation. According to the BLS in May 2019, the five states with the highest average salaries for this profession are New York at $164,260 per annum, District of Columbia at $158,460 per annum, Wyoming at $135,340 per annum, Maine at $135,170 per annum and North Carolina at $134,860 per annum(1).
Factors Contributing to Salary
Several factors contribute to the annual salary of a financial adviser, including experience, education, and network size. A financial adviser with sales experience can have a competitive edge, as much success in the field relies on a financial adviser’s capability to market himself to clients. While a bachelor’s degree is typically the basic required education, earning a master’s degree draws in additional clients and can increase credibility. After meeting certain minimum qualifications, a financial adviser can also choose to receive the CFP (Certified Financial Planner) certification, which serves to enhance their stature in the financial sector. A financial adviser may also be required to earn additional certifications depending on the products he markets.
Highest Paying Industries
The compensation of a financial adviser may also vary by industry. As reported by the BLS, the industries with the top 5 average annual salaries for financial advisers are Real Estate activities at $161,860 per year; Securities, Commodity Contracts, and Other Financial Investments and Related Activities at $128,580 per year;
Grantmaking and Giving Services at $123,140 per year; Management of Companies and Enterprises at $117,210 per year and Credit Intermediation and Related Activities (5221 And 5223 only) at $102,850 per year. Conversely, in many other industries, financial advisers have significantly lower annual salaries, including Accounting, Tax Preparation, Bookkeeping, and Payroll Services at $99,610 per year, Agencies, Brokerages, and Other Insurance Related Activities at $84,640 per year, and insurance and employee benefit funds at $76,930 per year.
Careers in Europe:
An entry-level Financial Advisor with less than one year experience can expect to make an average total compensation (includes bonus, tips, and overtime pay) of £21,793. An early career Financial Advisor with 1-5 years of experience makes an average total compensation of £29,466. A mid-career Financial Advisor with 5-10 years of experience makes an average total compensation of £38,178. An experienced Financial Advisor with 10-20 years of experience makes an average total remuneration of £41,421. In their late-career (20-plus years), employees earn an average total remuneration of £46,184.
Careers in Asia:
An early career Financial Advisor with 1-5 years of experience makes an average total compensation (includes bonus, tips, and overtime pay) of S$37,500 (Singapore). A mid-career Financial Advisor with 5-10 years of experience makes an average total compensation of S$50,565. An experienced Financial Advisor with 10-20 years of experience makes an average total compensation of S$50,050.
Job Outlook
According to the BLS, the employment of financial advisers is expected to grow by 27 percent from 2012 to 2022. This is much quicker than the projected growth rate of 11 percent for all occupations. The growing adult population is expected to contribute significantly to financial advisers’ requirements, as they may depend on these experts for planning advice.
