How much a financial advisor makes
How Much Does a Financial Advisor Make?
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 $91,220 annually, as of May 2010. The lowest-paid 10 percent of Financial Advisors earn less than $32,600 per year, and the highest-paid 10 percent earn more than $166,400. The middle 50 percent of Financial Advisors make between $43,100 and $111,990 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 ($136,310), Connecticut ($119,770), Massachusetts ($118,400), New Jersey ($99,560), and Pennsylvania ($98,800). 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 $151,470 annually, while working in Boston, Massachusetts provides an income of $120,620.
What is the job outlook for Financial Advisors?
The expected job growth for Financial Advisors is much 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 30 percent growth in the industry is expected, as the aging U.S. population prepares for retirement.Source: www.insidejobs.com
Category: Personal Finance