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.
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.
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.
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.
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.
In addition, millionaires are much more likely to work with a financial advisor (69%), more than double the amount of the general population (33%).
Bottom Line. A 1% annual fee on a multi-million-dollar investment portfolio is roughly typical of the fees charged by many financial advisors. But that's not inherently a good or bad thing, but rather should hold weight in your decision about whether to use an advisor's services.
Your financial advisor generally receives between 36% and 40% of the revenue Edward Jones receives from asset- based fees, transactional revenue, ongoing 12b-1 fees, trail commissions, and revenue from premiums generated by activity in your accounts.
Very few wealth managers consistently earn $2 million annually. It's just statistics. 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.
Edward Jones. "Edward Jones Ranks Highest in Investor Satisfaction, According to J.D. Power 2021 U.S. Full-Service Investor Satisfaction Study."
It also takes considerable time and effort to build a clientele and is considered a high-stress job by many, even in the best of times.
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.
Bottom Line. Certified financial planners can expect to earn an annual income of anywhere from less than $50,000 to nearly $325,000, depending on a variety of factors including experience, location and industry. CFPs in the securities business make the most, followed by those working for lenders.
Choosing between Edward Jones and Charles Schwab hinges on individual circumstances and financial objectives. While Edward Jones excels in personalized financial advising and strong client-advisor relationships, Charles Schwab stands out for its comprehensive range of financial services and transparent fee structures.
At Edward Jones, advisors often feel like they don't fully “own” their client relationships. Control over data, decisions around client servicing, and even day-to-day business operations can be more limited than many advisors would like.
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.
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.
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Of high-net-worth individuals, 69 percent work with a financial advisor. Compare that to just 33 percent in the general population.
Edward Jones serves as an investment advice fiduciary at the plan level and provides educational services at both the plan and participant levels, if applicable.
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.