It is not uncommon for advisors with 20+ years of experience to make well over $500k per year. I personally know of several who make $1+ million. That kind of personal income is across the board: wirehouse or independent. Many times this can be more when managing a team of advisors.
Salary range 2024: $230 – 300k
The VP of Finance & Operations plays a pivotal role in shaping both financial strategies and streamlining day-to-day operations to drive overall success and will require exceptional leadership and team management skills, allowing for a culture of collaboration and accountability.
Financial Advisors, as well as people from virtually any profession, can make millions of dollars per year but it is definitely not the norm. While possible, there are (in my estimate) only probably 100-200 financial advisors who take home more than $2mm per year.
Financial advisors in the United States typically make between $50,000 and $110,000 per year, with the average salary being around $75,000. However, this can vary based on experience, location, and the type of advisory services provided.
In our professional experience, achieving an annual income of $300,000 is a realistic target for financial advisors, particularly when leveraging a combination of fee structures, effective AUM growth strategies, and commission-based earnings.
In addition, millionaires are much more likely to work with a financial advisor (69%), more than double the amount of the general population (33%).
Very generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could also be higher, such as $500,000, $1 million or even more.
Introduction to seven figures
Such income levels are rare, with only about 0.3% of Americans earning a million dollars or more per year.
A $2 million income puts you in the less than 1% category of advisors—of all private wealth industry professionals—and everyone. To be clear, we're talking about income, not revenue. It's the money you take home after all expenses, including reinvesting in your advisory business.
Is $300,000 a Year Considered Rich? Given that the average salary in the U.S. is about 21% of $300,000, yes, many would consider someone earning $300,000 per year by themselves to be rich. However, in most states, you'd need to make substantially more than $300,000 per year to be in the top 1% of earners.
The Rule of 300 multiplies your current income by 300 to estimate your retirement needs. For example, if you currently spend $4,000 a month, you'll multiply that amount by 300, which means you'll likely need $1,200,000 when you retire.
Although making $500,000 a year may sound like a Herculean task, you'll be surprised to know there are plenty of regular folks who hit the half million mark every year.
Financial service providers regard a HNW client as someone with at least $1 million in liquid – or investable – financial assets. Clients with assets between $5 and $30 million are considered VHNW, while UHNW clients have assets greater than $30 million.
On average, financial advisors charge between 0.59% and 1.18% of assets under management for their asset management. At 1%, an advisor's fee is well within the industry average. Whether that fee is too much or just right depends entirely on what you think of the advisor's services and performance.
It may surprise you to know that making 6 figures is hardly the norm in the US—even on the lower end of the range. According to the US Census, about 16% of American households make between $100,000 and $149,999, 9% of households make between $150,000 and $199,999, and another 12% earn $200,000 or more.
Top earners across the United States earn at least six figures, with an average income of over $160,000 for those in the top 10% in 2021. Earners in the top 1% need to make $1 million annually in states like California, Connecticut, Massachusetts, New Jersey, and Washington.
Can you make $300k as a financial advisor? Yes, you can. Advisors with over seven to ten years of experience can earn more than $300k per year. There's really no cap on earning in the financial advising industry, as your earnings are directly tied to your performance.
Yes, it is. In fact, that level of income significantly surpasses what a typical American worker earns in a year. But it's worth noting that your local cost of living and financial obligations can impact how far the money goes.
Vast majority of wealthy individuals have a financial advisor, with two thirds saying they need more than one to manage their affairs. A recent study from Bank of America Private Bank reveals a strong majority of the country's richest individuals have a financial advisor – and most even have a team in their corner.
Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.
J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires. Read more: What is private banking, and how does it work?
However, in general, it's wise to start working with a financial advisor or wealth management team once you've built a nest egg of $1M in investable assets. However, you may wish to seek guidance earlier. Keep in mind that the greater your assets, the more complex your financial situation becomes.