According to the U.S. Bureau of Labor Statistics, the median annual wage for personal financial advisors was $94,170 in May 2021. It means half of the financial advisors earned more than that, and half earned less. One in ten earned less than $47,570, while one in ten made more than $208,000. A fun fact!
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.
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.
In addition, millionaires are much more likely to work with a financial advisor (69%), more than double the amount of the general population (33%).
All employee financial advisors receive minimum guaranteed salary (MGS) in an amount determined by federal and state law. MGS does not fluctuate and is paid regardless of quality or quantity of work performed.
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.
It's estimated that nine advisors out of ten don't last three years in the industry. That seems high for a career that offers so much promise and potential. Most people come into the business checking all the appropriate boxes for having what it takes.
The estimated total pay for a Financial Advisor Owner is $145,069 per year, with an average salary of $76,588 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
The benefits of becoming an advisor include earning potential, a flexible work schedule, and the ability to tailor one's practice. The drawbacks include high stress, the hard work needed to build a clientele, and the ongoing need to follow regulations. This is a lucrative career, but it's one with a high burnout rate.
They will first need to earn a bachelor's degree in accounting, business management, finance or a closely related field. Applicants looking to further enhance their qualifications should consider a master's degree in accounting, attainable online.
Achieving a seven-figure income as a financial advisor is possible but not typical. Adhering to industry regulations and ethics is crucial while striving for high income.
How stressful is being a financial advisor? Being a financial advisor can be highly stressful due to the responsibility of managing clients' financial futures, market volatility, and the need to make crucial decisions under pressure. Stress levels can vary based on individual clients and market conditions.
Most personal financial advisors work full time, and some work more than 40 hours per week. They also may go to meetings on evenings and weekends to meet with existing clients or to try to bring in new ones.
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.
The CFP® exam isn't easy. On average, pass rates hover between 60-65%, but they vary slightly depending on the year and the difficulty of the specific exams administered. It's a six-hour marathon spread over two three-hour sessions.
Even without an MBA degree, a career as a financial advisor can be highly rewarding in terms of overall cash compensation. According to the U.S. Bureau of Labor Statistics, as of May 2022, financial advisors make an average annual wage of $137,740.
Wealth management is one of the highest-paying financial advisor jobs. They work with high-net-worth individuals and families to manage their investments and assets. Plus, they provide personalized investment strategies and financial planning services to help clients achieve their long-term financial goals.
Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments.