Financial advisors in the United States typically make between $50,000 and $110,000 per year, with the average salary being around $75,000.
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.
While skilled investors can build wealth on their own, even the savviest benefit immensely from partnering with financial advisors. They can provide the guidance needed to help manage your money and set you on the path to millionaire status.
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.
Around 60%, or the majority, of financial advisors with more than five years of experience will earn over $100,000 annually and up to $300,000. At the higher end, $300,000, puts the advisor in the top 10% of household income in the United States, which is not bad at all.
Introduction to seven figures
Such income levels are rare, with only about 0.3% of Americans earning a million dollars or more per year.
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.
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.
In addition, millionaires are much more likely to work with a financial advisor (69%), more than double the amount of the general population (33%).
The average return is going to vary from year to year, based on the activity in the market. Studies have shown that financial advisors have the potential to add, on average, between 1.5% and 4% to your portfolio above what the average person is able to get as a return on their own.
$520,000. That's how much income Americans think they would need, on average, to feel rich, according to Bankrate's Financial Freedom Survey published in July. That salary would put you comfortably among the top 2% of American earners, according to Census data.
Financial Advisors Can Make Six Figures a Year: Here's How to Become One. Being a financial advisor is a career with many advantages, including the ability to make a high salary. CERTIFIED FINANCIAL PLANNER™ professionals can earn even more than non-certified financial planners.
It's never too late to save. Starting your savings journey at age 50 doesn't mean it's impossible to be a millionaire by 65. It may be more difficult and restrictive, but if this is your goal, it's crucial that you stick with it. To become a millionaire by age 65, you'd need to save $3,000 each month.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
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.
Commission-based fees are one of the most common ways run-of-the-mill investment advisors make money. They may charge a commission based on transactions, trades, or for purchasing specific products such as an annuity, mutual fund, or insurance policy within your larger financial plan.
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.
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.