Income for financial advisors is on the rise! As more and more people turn to financial advisors for help with their finances, the average salary of a financial advisor is expected to increase. So, how much do financial advisors make in 2022? Keep reading to find out!
Financial advisors are in high demand right now, and the salary prospects look good for those who enter this profession. In this article, we will take a look at the average salary of a financial advisor and discuss some of the factors that can affect income potential in this field. We will also explore job growth projections for financial advisors.
Job Description
Financial advisors provide guidance to clients on how to best save, invest, and grow their money. They often work with clients to develop financial plans and offer advice on a variety of topics, including retirement planning, risk management, and estate planning. Financial advisors typically work for banks, investment firms, or insurance companies. They may also work independently. Financial advisors typically work full-time and some may work long hours, including evenings and weekends.
Financial Advisor vs. Financial Planner
There are a few key differences between financial advisors and financial planners. Financial advisors typically provide guidance on investments, while financial planners take a more holistic approach to helping clients reach their financial goals. Financial planners may also offer investment advice, but they also help with other aspects of finances such as budgeting, retirement planning, and estate planning. In addition, financial planners are usually certified and regulated by the government, while financial advisors are not. In this article, we will focus specifically on financial advisors.
Becoming a Financial Advisor
In order to become a financial advisor, one must complete a rigorous education and training program. There are many ways to become a financial advisor. You can work for a bank, an insurance company, or even start your own firm. However, there are some basic steps that you will need to follow in order to be successful in this field.
- The first step is to get a degree in finance, accounting or a related field. This will give you the basic knowledge that you need to understand financial statements and investment products. You will also need to be able to pass the Series 65 exam, which is a test that covers investment advisor regulation.
- Once you have your degree and have passed the exam, you will need to find a firm that is willing to hire you. Many firms require that you have at least two years of experience working in the financial industry. Once you have found a firm, you will need to complete an internship program, where you will learn about the different products that the firm offers and how to sell them. After you have completed your internship, you will be ready to start your career as a financial advisor.
If you follow these steps, you will be well on your way to a successful career as a financial advisor.
Average Financial Advisor Salary
So, what is the average financial advisor salary? According to data from the Bureau of Labor Statistics (BLS), the median annual wage for financial advisors is $67,000 in 2022. Consequently, the average month salary amounts to $5,600, and $32.30. The top earners in this field (those in the 90th percentile) made an average of $114,000 per year, while the bottom earners (in the bottom tenth percentile) made an average of $39,000 per year.
Factors that May Affect Financial Advisor Salary
There are a number of factors that can affect how much financial advisors make. Here are the main ones.
Experience
One important factor is experience. Financial advisors with more experience tend to earn higher salaries than those who are just starting out in their careers. In fact, the entry level salary is estimated at $39,000. Another factor that can affect income is the size of the firm that an advisor works for. Advisors who work for larger firms tend to earn more than those who work for smaller firms.
Location
Location is also a factor that can impact financial advisor salary. If you are wondering how much financial advisors make, the answer will vary depending on where you live. Financial advisor salaries tend to be highest in the Northeast and West Coast states, where the cost of living is also higher. In 2022, the state with the highest financial advisor salary was New York, with an annual median of over $107,000. On the other hand, the lowest-paying states are Nebraska ($36,000) and South Dakota ($39,000). In general, advisors who work in large metropolitan areas tend to earn more than those who work in smaller towns or rural areas.
Client
Finally, the type of clients that an advisor works with can also affect income potential. Advisors who work with high-net-worth individuals tend to earn more than those who work with middle-class clients.
Job Outlook
No matter what state you live in, if you are interested in becoming a financial advisor, now is a great time to enter the field. Job growth in the financial advisor industry is expected to be strong in the coming years. The BLS projects that employment of financial advisors will grow by 30% from 2020 to 2029, much faster than the average for all occupations. This growth is being driven by a number of factors, including an aging population and increased concern about retirement planning.
