How Much Money Do Financial Advisors Make?
What sort of pay is possible for financial advisors? Although the compensation range for financial advisors according to PayScale is $36,000–100,000 annually, the long-term earning potential is significantly higher. Why such a wide range? Everything depends on the type of financial advisor you are. Here are some illustrations.
Stockbroker Salary (Registered Representative Salary)
Financial advisors who work at brokerages and manage the financial portfolios of private investors or corporate clients are known as stockbrokers (FINRA refers to them as registered representatives). The U.S. Bureau of Labor Statistics (BLS) reports that the average yearly wage for stockbrokers in 2018 was $64,120. Stockbroker income is commission-based, thus they have the potential to make much more money than that (after reaching a particular sales threshold). As stated by
You must have FINRA securities licenses if you want to work as a registered representative or stockbroker. The Series 7 and Series 63 licenses are two examples of this.
Investment Advisor Salary
Investment advisors choose the greatest investments for a client's portfolio whether working for financial investment firms, financial planning companies, or for themselves. The average yearly pay of an investment advisor is $70,797, according to Payscale. Investment adviser compensation, like that of stockbrokers, may also include commissions and profit-sharing, which raises the annual wage. According to a 2018 CFA Society Chicago report, the compensation with commissions and additional benefits might average $234,700 in Chicago.
A Series 65 license, which enables you to work with customers as an Investment Advisor Representative, is required if becoming an investment advisor appeals to you.
Financial Planner Salary
The word "financial planner" refers to a broad category of financial advisors who assist businesses and people in achieving their long-term financial goals. A portion of the assets they manage is often what they charge their clients. Additionally, they can bill an hourly rate or get payment for stock and online insurance policy purchases. Those that assist people with planning are referred to as "personal financial advisors." Numerous of these financial planners hold CFP® certification.
The average salary for a professional with a CFP® certification is $85,449 a year, with a maximum salary of $149,500, according to ZipRecruiter. According to the U.S. BLS, the median annual compensation for a professional working under the broader category of personal financial advisors is $88,890, and Payscale adds that the highest wage is $122,000.
Wealth Manager Salary
A wealth manager is a specific category of financial advisor who works with wealthy clients to help them reach their objectives for wealth creation, protection, and distribution. High-net-worth clients are often people who have assets worth $1 million or more, while some businesses only work with clients who have assets worth $5-10 million or more. According to pay.com, asset managers make an average yearly pay between $63,975 and 93,420. Wealth managers could, however, make far more money, particularly as they gain expertise or if they work for well-known broker-dealers. Wealth managers in that group can earn $2 million annually, according to several articles. Wealth managers who fall within that category can earn $2 million a year.
Wealth management offers a wide range of designations. Examples include Accredited Portfolio Management AdvisorSM, Wealth Management SpecialistSM, CFP® qualification, and CFA® charter. Wealth managers will additionally require (at a minimum) Series 65, Series 6, and Series 7 licenses if they are offering financial advice or selling securities.
Interested in Making Money as a Financial Advisor?
Gaining your securities licenses or CFP® certification takes time and effort, but it increases your chances of becoming a financial advisor with a high pay. Packages for preparing for securities prelicensing exams and CFP® courses boost your chances of obtaining the certifications and licenses that can set you on the road to financial success.
