Financial Advisor Salary in the US

Financial advisors do not come in a one-size-fits-all box. They receive a variety of certificates and degrees. Financial advisors come from all walks of life and provide a wide range of services. Financial advisors can help you with a lot more than just deciphering financial jargon and selecting mutual funds. Simply put, financial advisors assist you in all aspects of financial planning. This post emphasizes financial advisor salary in the US as well as most things you need to know about becoming a financial advisor in the US.

These principles can easily be applied to as many places as possible around the, although, with little variation. In this post, we will talk about financial advisor jobs, financial advisor job descriptions, entry-level financial advisor salary, financial advisor salary after years, financial advisor salary 2022, how much financial advisors make a month, and lots more.

Financial Advisor Salary in the US

How to Become a Financial Advisor

A Financial Advisor is a professional who helps people with their finances based on their financial flexibility. Financial advisors must finish particular training and be registered with recognized organizations to provide financial advice in many countries. A Financial Advisor can help you develop ways to reduce financial risk and increase long-term wealth. Financial advisors can help you create plans to help you accomplish your financial goals. The word “financial advisor” is a broad term encompassing a wide range of financial experts. Here are some examples of the various types of financial counselors you might encounter:

  • Financial Planners
  • Wealth Manager
  • Investment Professionals
  • Tax Professionals
  • Skills Required To Become A Financial Advisor


Required Skills to Become a Financial Advisor

Financial advisers operate in the fields of finance, taxation, insurance, and other related fields. To perform their obligations as a financial advisor, prospective financial advisors need a set of skills and competence and some certification. Here are some of the qualifications required to work as a financial advisor.

  • Ability to clearly and easily express complex material
  • Skills in research and analysis
  • Excellent interpersonal, communication, and listening skills
  • The ability to connect with clients and network
  • Organize your time.
  • Negotiation and persuasion abilities
  • Ability to work as part of a group
  • Having a goal-oriented mindset
  • Customer service expertise
  • Ability to make decisions


Qualifications Required To Be A Financial Advisor

A bachelor’s degree in finance, marketing, business, or a similar discipline from a recognized educational institution is required to work as a financial advisor. A master’s degree in business administration (MBA) is not required. However, it can be a plus for a financial counselor on their résumé. A General Securities Representative License, often known as a Series 7 license, is needed for financial advisors. The Series 7 exam includes all of a financial advisor’s core investment regulations and expertise.  For individuals seeking to obtain a Series 7 license, preparation is key to doing well in the exam. Visit this test preparation website for free Series 7 study training material and check the in-depth guide to prepare for the exam. With the right study plan and dedication, you can obtain the education and licenses necessary to become a financial advisor and begin a rewarding career helping clients achieve their financial goals .The Uniform Securities Agent State License, also known as the series 63 license, is also needed for financial advisors.

Financial advisers with a Series 63 license can work in numerous states. The Uniform Investment Advisor Law exam, often known as the series 65 exams, is needed by financial advisors who desire to charge advising fees.


Licenses Required to Become a Financial Advisor.

There are a variety of other licenses that financial advisors might obtain to help them sell more goods. These are the most fundamental and crucial licenses, and they include:

  • State life, health, and variable insurance license
  • National future association license (series 31)
  • National Commodities futures license (series 3)
  • Financial advisors can future establish their reliability by getting a certification.

Certification is not required, however, it is recommended. The Certified Financial Planner is the most well-known of these credentials (CFP). The Certified Financial Board Of Standards Inc. issues this certificate. The board evaluates financial advisers on their ability to take a comprehensive approach to financial planning. There are many other certifications available to financial advisors. They include:

  • Chartered Financial Consultant (CHFC)
  • Chartered Investment Management Consultant (CIMC)


Job Description Of A Financial Advisor

Every sort of financial advisor has a distinct set of skills that can assist you in achieving your financial objectives. A financial advisor can help you with the following tasks:

1. Make a retirement plan

Financial planners can assist you in achieving your retirement objectives. Building a business, taking holidays, and seeing your grandchildren are all possible retirement aspirations. A financial advisor must assist you in achieving your objectives, no matter what they are. Financial advisors assist you in accumulating money through your source of income while also assisting you in saving for retirement. Financial investors can assist you in estimating your financial demands and devising strategies for extending your retirement funds.

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2. Investments

An investment specialist will not only assist you in investing your money and building wealth but will also protect it from risk over time. Investment specialists can assist you in determining which mutual funds are best for you and show you how to manage and maximize your investment. Investment professionals may also assist you in recognizing and managing risks and determining what steps you’ll need to take to meet your financial goals. An experienced investment consultant can also assist you in staying on the knife’s edge of investing when it takes a turn for the worst. Financial advisors understand that when mutual funds fall in value, they are more likely to rise again. They’ll always tell you to analyze your investments.

3. Tax Preparation

Taxes can be intimidating, especially as your wealth grows and you reach your ideal retirement plan. A tax professional can explain how taxes affect your money in simple terms. The idea is to minimize your tax burden while maximizing your returns. According to a financial counselor, you should never make investment decisions exclusively based on tax considerations.

4. Long-Term Care and Health Planning

During retirement, people spend a lot of money on healthcare. A financial advisor can help you understand your long-term health insurance alternatives. You will be able to select a healthcare plan that is both cheap today and in the future when you are most in need.


Careers Related to Financial Advisors

Financial advisors’ services aren’t restricted to just that. They can also work in a variety of other fields. These occupations include:

  • Financial Manager
  • Financial Analyst
  • Budget Analyst
  • Insurance Sales Agent
  • Insurance Underwriters
  • Securities, Commodities, and Financial Service Sales Agent
  • Real Estate Brokers


Schools for Financial Advisors

According to the US Bureau of Labor Statistics (BLS), personal financial advisors must have a bachelor’s degree, with many also acquiring master’s degrees, doctorates, and advanced certifications. Many organizations do not require specific degrees because they train their advisers on their operations and goods after being hired. However, a background in arithmetic, economics, business, or law is beneficial. As a financial advisor, you may need various certificates and licenses issued by the Financial Industry Regulatory Authority (FINRA) and your state insurance department, depending on the types of investment vehicles you offer.

To sell a full variety of financial goods and operate with the maximum flexibility in the financial markets, you’ll need a FINRA Series 7 (General Securities Representative) and a Series 66 (Uniform Combined State Law) license. For 4-year degrees, there are several options to explore. There are also online possibilities.

  • The University of Alabama
  • The Ohio State University
  • Liberty University

Schools that Offer Master’s Degrees for Financial Advisors

  • The University of Alabama
  • The University of Georgia
  • The American College of Financial Services

Doctorate Degrees for Financial Advisors

  • The American College of Financial Services
  • Texas Tech University
  • The University of Georgia


Financial Advisor Salary in the US Outlook

According to the Bureau of Labor Statistics (BLS), financial advisors have a bright future. According to the Bureau of Labor Statistics’ Occupational Employment Statistics, the average annual pay of financial advisors was $124,140 in 2017. Financial adviser jobs are expected to expand 15% over the next ten years, from 2016 to 2026. Personal financial adviser employment will rise to 312,300 by 2026, up from 271,900 in 2016. Even if many believe they can get by without a financial advisor, the truth is that most Americans would greatly benefit from one.

According to a CIT Bank survey, only around a fifth of Americans believe they are saving enough to accomplish their long-term financial goals and plans. The great majority of Americans are either saving insufficiently or not saving at all.


How Much Does a Financial Advisor Make?

In the United States, the average compensation for a Financial Advisor is $54,969 per year. To discover Financial Advisor salaries in your area, sort by location. Financial Advisor salaries were based on 1,103 anonymous salary submissions by Financial Advisor employees to Glassdoor. According to recent estimates, financial advisors in the United States earn an average annual compensation of $88,890. When bonuses, commissions, and other kinds of compensation are factored in, a financial advisor’s average total income is $95,640. The least 10% of financial advisors earn around $44,000 per year, while the top 10% earn more than $208,000 per year.

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Hedge funds and investment banks employ the highest-paid financial advisors, who make an average of $228,450 per year. Financial advisers working for insurance companies earn an average of $119,350 per year, while those working for brokerages and investment firms earn $94,320 and $104,970 per year. In terms of geography, financial advisors in San Francisco can expect to earn around $122,430 per year, while those in Los Angeles can expect to earn around $92,020 per year. According to recent estimates, financial advisors in New York City earn an average of $121,300 per year, while those in Boston earn $107,780 per year.


10 States That Offer High Financial Advisors Salary in The US

Although there are some overall trends, a financial advisor’s average income varies by state. The states with the greatest pay for financial advisors are mostly in the Census areas Northeast, South, and, to a lesser extent, West. Three New England states — (3) Connecticut, (5) Maine, and (6) Rhode Island — and two Middle Atlantic states — (1) New York and (8) New Jersey — are among the top ten states in the country. Three states from the South were ranked: (4) District of Columbia, (9) Florida, and (10) North Carolina, all of which are in the South Atlantic division. Given the volume and concentration of enterprises in the financial sector in these states, these locations make sense.

Of course, New York is the world’s financial capital. Nearby Connecticut and Rhode Island are part of this regional concentration of financial power to some extent. Meanwhile, North Carolina has become a banking hub, with Bank of America’s headquarters in Charlotte. Los Angeles, the San Francisco Bay Area, Silicon Valley, and San Diego are all active economic districts in California, with their fair share of finance corporations employing financial advisors and high-income residents in need of financial advisors to assist manage their money.


10 States That Offer Low Financial Advisors Salary in The US

The ten states with the lowest average pay for financial advisors are on the other end. These states are mostly found in the Midwest, South, and, somewhat surprisingly, New England. Vermont is the lone outlier in New England in terms of financial adviser pay. Financial planners in every other New England state make more than $100,000 per year. The average yearly income in Vermont is only $76,050, owing to a lack of demand for their skills in the state. Low demand and broader economic conditions affect financial adviser wages in the other low-paying states.

For example, several of these states have lower-than-average living costs, which is advantageous for low-cost goods and services. However, according to the Census Bureau, lower salaries tend to follow, with the bulk of these ten states’ median household incomes falling below the current national median of $57,652.


How Much Do Financial Advisors Make Hourly?

According to the Bureau of Labor Statistics, the median annual financial advisor salary in the US in 2020 was $89,330, which is much more than the national average. However, there is a significant gap in compensation between the highest and lowest-paid financial counselors. Only $44,100 was earned by the lowest tenth percentile of financial advisors. Meanwhile, the top 10% of earners took home more than $208,000, or nearly five times as much.

One factor contributing to this disparity is industry concentration, as financial advisors frequently wear multiple hats. Take a look at the top-earning industries in the financial adviser space, as determined by the Bureau of Labor Statistics:


Securities, commodity contracts, and other financial investments and related activities $130,820
Management of companies and enterprises $109,840
Credit intermediation and related activities $98,610
Accounting, tax preparation, bookkeeping, and payroll services $106,660
Agencies, brokerages, and other insurance-related activities $105,920


How Do Financial Advisors Make Money?

Financial advisors can make money in a few different ways when it comes to compensation. Clients of fee-only advisors pay standard management and planning costs. The same is true for fee-based advisors. Hourly fees, fixed costs, and fees based on total assets under management are all examples of these fees (AUM). Imagine a financial advisor charging a customer a 2% annual fee on their AUM. The client will pay a charge of $200 per year if the advisor manages $10,000 of their assets. When it comes to non-client-based compensation, which fee-only advisors totally eschew, fee-only and fee-based financial advisors begin to diverge.

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On the other hand, a fee-based advisor may receive commissions for selling specific stocks, insurance products, and other services. Fee-only consultants are seen as the better option from the consumer’s standpoint, as they are paid exclusively for the services they are asked to give. On the other hand, earning money on commissions can expose an advisor to potential conflicts of interest. For example, they can be enticed to advocate one product over another because it pays them more money. However, it is uncommon for a financial advisor’s salary to be based solely on commissions.


Industry Outlook for Financial Advisors

According to the Bureau of Labor Statistics, employment of financial advisors will increase by 15% between 2016 and 2026. The ascent rate is substantially faster than the national average for all vocations. The government attributes this increase to an aging population that will soon require retirement planning counsel. The move from traditional pensions to individual retirement accounts (IRAs) and 401(k) plans, according to the BLS, is a major source of demand for financial advice.

It also mentions that the rise of robo-counselors may temporarily reduce the demand for financial advisors. However, “the influence of this technology should be limited over the next ten years as customers continue to gravitate to human advisors for more complex and specialized investing advice,” according to the report.



Financial advisers are in charge of assessing their clients’ financial needs and supporting them in creating various documents to suit those needs. They frequently work with businesses and people, and they spend a significant amount of time consulting with clients to assess their financial objectives. Investments, taxes, estate planning, insurance selections, and retirement plans are all things that financial advisors may assist their customers with. To offer proper recommendations, they must thoroughly understand their client’s financial status. The bottom line is that a Financial advisor’s salary in the US is around $46,680 per year. Entry-level positions start at around $32,000, while most experienced workers make up to $65,000. I hope this helps you. See also, some of the frequently asked questions about the financial advisor salary in the US.


Frequently Asked Questions

How much does a Financial Advisor make in the United States?

In the United States, the average annual pay for a Financial Advisor is $66,874. Salary estimates are based on 1,784 anonymous salary submissions from Financial Advisor workers, users, and data collected from previous and existing job adverts on Indeed in the last 36 months. A Financial Advisor’s average term is 1-3 years. Some report has it that The average salary for a Financial Advisor is $60,566 per year in the United States. Salary estimates are based on 1,249 salaries submitted anonymously to Indeed by Financial Advisor employees and users and collected from past and present job advertisements on Indeed in the past 36 months.

How much do financial advisors earn yearly?

For example, advisers with fewer than three years of experience may earn a base salary of $40,000 to $50,000 per year but might increase their profits by 25% through bonuses or commissions. A top adviser can make well over six figures in addition to incentives and other perks.

How much do financial advisors make?

It is determined by the advisor’s experience, location, credentials, and quantity of clients. A junior financial advisor can earn as little as $35,000, whereas a senior financial advisor in a big city can earn up to $200,000 or more.

How much does a financial advisor earn in commissions?

For accounts exceeding $1 million, the average commission structure is 1% of assets under management (AUM). Commissions can be as high as 2% to 3% for smaller accounts.

What Are the Job Prospects for Financial Advisors?

According to the BLS, the number of personal financial advisors is predicted to expand at a faster-than-average rate of 4% between 2019 and 2029. Furthermore, according to the BLS, the median annual income for a personal financial advisor was $89,330 in May 2020, with the top 25% earning more than $208,000. Undergraduate and graduate degree programs are available for those interested in becoming financial advisors. There are a few pathways to consider, but most programs keep to the topic of financial planning.

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Martin Uwakwe

As an SEO Strategist, Web Analytics Expert, and Content Developer with over 7 years of experience, I'm passionate about leveraging data-driven insights to optimize online visibility, drive organic traffic, and boost search rankings. My track record includes successfully optimizing and analyzing hundreds of e-commerce websites, managing multi-million-dollar marketing budgets for maximum ROI, and crafting engaging content that resonates with audiences. With proficiency in SEO, data analysis, web optimization tools, and content creation, I'm dedicated to helping businesses thrive in the digital landscape.