What Is the Typical Financial Advisor Salary? Find Out Now.
Financial advisor salaries vary a lot based on experience and where you work. In 2023, the median salary in the U.S. was $99,580. This is much higher than the national average of $48,060 for all jobs. Find out how location and certifications can impact your salary and how to make more money in this growing field.
The demand for financial advisors is increasing, with a 17% job growth expected by 2033. Only about 20% of Americans save enough, offering a chance for advisors to help clients plan for the future. This guide will help you understand the salary landscape in this rapidly growing career.
Key Takeaways
- The median financial advisor salary hits $99,580 annually, far above most professions.
- Employment will grow 17% by 2033, adding over 40,000 new roles.
- Top earners in New York make over $166,000, while some states pay under $80,000.
- Certifications like CFP can boost income and job opportunities.
- Experienced advisors at major firms may earn up to $2 million annually.
Overview of Financial Advisor Salaries in the U.S.
Financial advisor salaries change a lot based on experience and where they work. The median financial advisor salary is $99,580 a year, says the Bureau of Labor Statistics. Sites like Glassdoor and Zippia show averages from $64,993 to $77,972. This shows how financial planner income can vary.
Current Average Salary Figures
Financial advisors can earn between $44,000 and $119,000. They can also get bonuses up to $33,000 and profit sharing of $20,000. New advisors start at $54,625, and those with 1-4 years experience make about $63,487.
As advisors get more experience, their pay goes up. Late-career advisors can earn 33% more than new ones.
Factors Influencing Salaries
Education and certifications like CFP® or CFA affect financial consultant pay. Advisors in big cities like New York or Boston make more than those in smaller places. The way advisors work also matters.
Some get paid through commissions ($5,000–$131,000). Others charge fees. Advisors who focus on wealth management or retirement planning often earn more.
Salary Trends Over Recent Years
Salaries have gone up over time. This is because more people need financial advice. The BLS says jobs will grow by 17% by 2033.
This growth is due to older people needing retirement planning and more complex financial products. Advisors who work with wealthy clients can earn even more. This shows the field is growing.
Entry-Level Financial Advisor Salary
Starting as a financial advisor is about building your career from scratch. Entry-level roles often come with a guaranteed financial advisor base pay to help you grow. Many firms offer training to help you develop skills and increase your financial advisor salary over time.
For example, RTD Financial Advisors starts entry-level positions at $50,000. Homrich Berg offers $50,000 to college graduates.
Starting Salaries for New Advisors
New advisors with a bachelor’s degree usually earn between $40,000 and $60,000 a year. Zippia says the national average is $64,993 for entry-level roles. Some firms, like Halbert Hargrove, offer $80,000 in places like Long Beach, California.
Base pay often changes to performance-based incentives as you gain experience. Many firms also give bonuses for meeting client targets. This can boost your early investment advisor earnings potential.
Salary Differences by Region
Where you work greatly affects your starting pay. In New York City, entry-level advisors can earn up to $111,661 a year. Boston and Washington, D.C., offer averages over $90,000.
Smaller markets may start lower, at $35,000–$45,000, but living costs are often lower. San Francisco sees median total compensation reach $193,000 for lead roles. This shows how location impacts your financial advisor salary growth over time.
Mid-Career Financial Advisor Salary
Financial advisors with 5–15 years of experience see their income grow. Glassdoor reports that those with 10–14 years make about $73,233 a year. But, top advisors can earn over $200,000 by managing wealth for high-net-worth clients.
This stage values expertise and client growth. Pay increases with specialized skills and certifications.
Salary Range for Experienced Professionals
Mid-career financial advisors earn between $75,000 and $150,000. This depends on their performance and the wealth they manage. Advisors for ultra-high-net-worth families can earn 2–3 times more than others.
Independent advisors make about $90,000, while those in wirehouse firms earn over $100,000. Bonuses and profit-sharing can also increase their earnings. Top performers can earn up to 55% of fees from successful portfolios.
Key Drivers of Mid-Career Earnings
Assets under management (AUM) are a big factor in mid-career earnings. Advisors with over $500M can earn 38% of profits. Certifications like CFP® or CFA can add 5–20% to their pay.
Specializing in areas like tax strategy or succession planning also boosts earnings. Location plays a role too. New York advisors average $143,000, while those in rural areas earn less than $60,000. Firms are now focusing more on mid-career advisors, offering them better raises as the competition for skilled advisors grows.
Senior Financial Advisor Salary
Senior financial advisors with 15+ years of experience earn high salaries. Their base pay ranges from $77,000 to $177,000. When bonuses and equity are included, their total pay can go over $230,000.
Those with the Certified Financial Planner (CFP®) designation earn more. Glassdoor reports an average of $106,175 annually for certified professionals. Senior roles often require advanced credentials like the CFP or Series 65 license.
Senior Roles and Their Compensation
Leaders like branch managers or partners earn more. Their base pay averages $111,751 annually, according to ZipRecruiter. In California’s Berkeley, they can earn up to $162,261, which is 30% above the national average.
Financial consultant pay increases with experience. Late-career advisors may see only small pay decreases. This is due to client retention and asset management. Many firms require a bachelor’s degree in finance or a related field.
Bonuses and Profit Sharing
Bonuses for senior advisors range from $5,000 to $40,000 annually. They are based on client growth and revenue. Profit-sharing programs can add up to $49,000.
Revenue-sharing models can award 40–60% of generated income. Top earners with $500,000+ total compensation combine base pay, equity, and performance incentives. According to indeed, average base salaries reach $118,040. But total compensation often goes over $200,000 for top performers.
Salary By Type of Employment
Financial advisor salaries change a lot based on their job setup. Those who work alone make money based on client ties. On the other hand, those in firms get a set financial advisor base pay and bonuses.
Independent Financial Advisors
Independent advisors, like Registered Investment Advisors (RIAs), get paid by client fees. They keep 80-100% of what they make but have to pay for things like office space and following rules. At first, they might make $75,000, but successful ones can make over $500,000 a year.
This path needs good business skills and patience. It takes 3-5 years for income to really grow.
Firm-Employed Advisors
Advisors at places like Morgan Stanley or Fidelity get a steady financial advisor salary. Their base pay is between $50,000 and $90,000, plus bonuses that depend on how much money they make (30-50%). They also get extra benefits like health insurance and retirement plans, adding 20-30% to their pay.
Even though they might not make as much as those who work alone, they have more stability. This makes it easier to start their careers.
| Employment Type | Base Pay Range | Revenue Share | Benefits | Risk Level |
|---|---|---|---|---|
| Independent | $0–$2M+ | 80–100% | Self-funded | High |
| Firm-Employed | $50K–$90K | 30–50% | Full benefits | Low |
Geographic Salary Variations
Financial advisor salaries and wealth manager pay vary a lot by location. Cities like New York and Boston have the highest salaries. But, rural areas pay less. This is because of the local economy and living costs.
| City | State | Average Salary |
|---|---|---|
| New York City | NY | $111,661 |
| Boston | MA | $101,333 |
| Portland | ME | $102,614 |
| Washington | NJ | $92,166 |
| Washington | DC | $90,757 |
Urban vs. Rural Pay Differences
Big cities like San Francisco and Los Angeles pay more than rural areas. For example, New York City advisors can earn up to $161,410. But, rural advisors might make half that. Yet, living costs in cities like New York can be very high.
This means that even though city salaries are higher, the cost of living can be a big factor. Rural areas might offer a better quality of life for less money.
Regional Economic Drivers
States with big financial centers like Connecticut and Massachusetts have higher salaries. The Southeast and South Central U.S. tend to have lower salaries. Advisors in cities like Boston might earn 30-40% more, but their living costs are also higher.
Now, companies are considering remote work and relocation. This helps balance salaries with the cost of living in different places.
Commission vs. Salary Models in Financial Advisory
Financial advisors work with two main pay systems: commission-based or salary-driven. Knowing these options is key to their long-term earnings. The financial advisor base pay model gives a steady income. On the other hand, financial consultant pay depends on sales.
Understanding the Commission Structure
Commission-based advisors make money from client deals. For instance, selling mutual funds can earn 1–5% in commissions. Annuities might bring in 4–8%. Insurance sales can offer big upfront rewards, like 30–100% of the first-year premiums.
This setup can lead to incomes ranging from $30,000 to over $300,000 a year. Firms like Colony Group and RTD Financial Advisors give base salary increases of 2–6%. But, commissions are what really boost the investment advisor earnings for top performers.
Impacts of Fees and Commissions on Income
Fee-based models, popular among financial planner income strategies, charge 0.75–1.5% of managed assets. A $50 million portfolio can make $500,000 a year before costs. Hybrid models mix fees and commissions, aiming for balance.
Firms like Homrich Berg offer base raises plus bonuses. Halbert Hargrove starts advisors at $80,000. Fee-based models now cover 34–38% of assets at big firms. Aite Group predicts 50% of assets will be in fee-based programs by 2025. This change shows a move towards clearer client relationships.
Impact of Certifications on Salary
Professional certifications are key to unlocking higher earning potential in financial advisory careers. For instance, earning a Certified Financial Planner (CFP) designation can increase financial advisor salary by 15–30% compared to non-certified peers. This credential shows expertise in holistic financial planning, a competitive advantage in today’s market.
Top certifications like CFP® and Chartered Financial Analyst (CFA) directly correlate with higher pay. A CFP professional earns an average financial consultant pay of $106,175 annually, per Glassdoor data. The CFA designation focuses on investment management, offering median earnings of $99,094. These certifications validate skills, leading to premium client trust and better job opportunities.
| Certification | Focus Area | Salary Impact |
|---|---|---|
| Certified Financial Planner (CFP) | Comprehensive financial planning | +15–30% boost |
| Chartered Financial Analyst (CFA) | Investment analysis | $99k median salary |
| Chartered Financial Consultant (ChFC) | Insurance and tax planning | Up to $15k/year increase |
| Certified Investment Management Analyst (CIMA) | High-net-worth client services | +20–30% premium |
Advanced credentials like the CPWA or RICP target niche markets, such as ultra-wealthy clients or retirement planning, adding $15k–$30k annually. Employers often cover certification costs, viewing them as investments. Early-career advisors see 15–25% raises post-certification, while seniors gain access to top roles like wealth management directors earning over $250k. Prioritize certifications strategically to maximize financial advisor salary growth and career mobility.
Differences in Specialization
Choosing a specialization can greatly impact a financial advisor’s income. Some areas lead to higher financial advisor salary or wealth manager compensation. Others offer steady but lower earnings. Advisors in high-demand niches often earn more.
| Specialization | Salary Range | Key Factors |
|---|---|---|
| Wealth Management | $250k–$500k+ | CPWA® certification, AUM fees, serving ultra-high-net-worth clients |
| Retirement Planning | $120k–$250k | RMA® certification, fee-based models |
| Investment Strategy | $150k–$300k | CFA®/CIMA® credentials, performance-based pay |
| ESG Investing | $140k–$300k | Client demand growth, 15-20% premium over generalists |
salaries for advisors in different niches>
Wealth managers earn more with expertise in multi-generational planning and complex tax strategies. Investment advisors in ESG fields see earnings grow as younger clients seek values-aligned portfolios. Estate planners, charging $300–$600 hourly, often earn over $200k annually.
high-demand specializations and their pay>
Emerging areas like cross-border wealth management are in high demand due to global client needs. Tech-sector equity compensation advisors in Silicon Valley report top-tier earnings. Tax-focused advisors with CPA dual credentials earn more than non-certified peers. These specialists often hold certifications like CFP and CFA, boosting their financial advisor salary.
Job Outlook and Future Salary Projections
Financial advisor jobs are growing fast. The Bureau of Labor Statistics says there will be a 17% increase in jobs by 2033. This means 27,000 new jobs every year as more people retire and need financial advice.
Growth of the Financial Advisory Role
New trends like estate planning and tech are changing the job. California, New York, and Florida have the most jobs. California alone has 32,670 roles in 2022.
These states also show pay differences. For example, New York-Newark has over 29,000 jobs, leading to higher pay for financial advisors.
| State | 2022 Jobs | 2032 Projection |
|---|---|---|
| California | 32,670 | 43,500 |
| New York | 26,800 | 31,200 |
| Florida | 24,640 | 29,200 |
Economic Factors Affecting Salaries
Market changes affect how much financial advisors earn. For those who get paid based on how much money they manage, changes can be big. But, with rising interest rates and inflation, there’s more need for advice on fixed income and retirement plans.
Florida’s Tampa area is a good example. Its top earners make $239k a year, much more than the national average of $99,580.
Advisors who use new technology and focus on specific areas will see their salaries grow the most. Staying up-to-date with these trends can help advisors earn more in this growing field.
Benefits Beyond Salary
Financial advisors’ salaries are just the start. Top firms offer great benefits to increase total value. These include premium health plans and retirement matches, making the job even more appealing.
Health Insurance and Retirement Plans
Many employers pay 80-90% of health premiums. This includes dental and vision care. Retirement plans offer 4-6% 401(k) matches and profit-sharing.
Some firms even have deferred compensation plans. This lets advisors delay taxes on their earnings. A study found 45% of employers struggle to find skilled advisors. These benefits are key to attracting talent.
| Benefit | Value Range | Details |
|---|---|---|
| Health Insurance | $8k–$20k/year | Includes family coverage options at low employee cost |
| Retirement Matching | 4-10% of salary | 401(k) matches plus profit-sharing bonuses |
| Deferred Compensation | Up to 10% of income | Tax-deferred earnings for senior roles |
Additional Perks of the Role
Financial consultants enjoy perks like expense accounts for client dinners or conferences. Wellness stipends and remote work options are also popular. Over 40% of firms now offer hybrid schedules, a big increase from before the pandemic.
Some companies give up to $5k/year for continuing education. This helps advisors keep their certifications up to date.
Over 10% of workers value benefits more than higher pay. And 44% of firms now offer full-time remote work. Financial planner income increases with perks like childcare subsidies or professional membership reimbursements.
Conclusion: Financial Advisor Salary Insights
Financial advisor salaries vary a lot. This depends on experience, certifications, and where you work. The U.S. Bureau of Labor Statistics predicts a 17% job growth for financial planners by 2033. This means 27,000 new jobs every year.
Median earnings are around $99,580. But, top earners in senior roles can make over $500,000 with bonuses. Base pay is going up 6.5% each year. Certifications like the CFP can add 10-20% to what you earn.
Key Takeaways for Aspiring Advisors
Starting salaries are often around $40,000. But, they can jump up a lot as you gain experience. Independent advisors might earn 20-30% more than those in smaller firms. They also have to handle more business tasks.
Investment advisor earnings are highest in areas like wealth management. Top earners there make over $250,000. Where you work also matters. Cities usually offer higher salaries but have higher living costs too.
Making Informed Career Choices
Choosing between commission-based or fee-only models affects your earnings. Advisors with CFP certifications grow their careers faster. Only 25% of professionals have this certification.
Focus on growing areas like retirement planning or tech-driven wealth management. This can help you earn more. Look for firms that offer good profit-sharing and training. This can help you earn more and build your client network faster. With demand up, combining technical skills with good communication can lead to high earnings.
FAQ
What is the median salary for a financial advisor in the United States?
How does experience affect a financial advisor’s salary?
What factors influence the salaries of financial advisors?
Are there significant salary differences by geographic location for financial advisors?
What is the salary range for entry-level financial advisors?
How do independent financial advisors’ salaries compare to those employed by firms?
What role do professional certifications play in financial advisor salaries?
How does specialization affect financial advisor compensation?
What are the prospects for job growth in the financial advisory profession?
What benefits can financial advisors expect beyond their salaries?
Source Links
- Here’s How Much Financial Advisors Earn In Every U.S. State – https://www.forbes.com/sites/andrewdepietro/2019/02/23/financial-advisors-salary-state/
- How Much Money Do Financial Advisors Make? – https://www.kaplanfinancial.com/resources/getting-started/financial-advisor-salary
- Financial Advisor – https://www.payscale.com/research/US/Job=Financial_Advisor/Salary
- Financial Advisor Salary: Your 2025 Guide – https://www.coursera.org/articles/financial-advisor-salary
- Pay Day: Breakdown of financial advisor salaries and perks – https://www.financial-planning.com/news/pay-day-breakdown-of-financial-advisor-salaries-and-perks
- Financial Advisor Salary: What Do They Earn? — Vintti – https://www.vintti.com/blog/financial-advisor-salary-whats-the-financial-reward-for-advising
- Senior Financial Advisor – https://www.payscale.com/research/US/Job=Senior_Financial_Advisor/Salary
- Can You Guess How Much Senior Financial Advisors Make? – https://finance.yahoo.com/news/guess-much-senior-financial-advisors-145648882.html
- What is the Average Salary of a Financial Advisor – https://zoetalentsolutions.com/salary-of-a-financial-advisor/
- How to Address Geographic Pay Differentials With a Remote Workforce – https://www.bdo.com/insights/tax/developing-a-geographic-pay-philosophy-a-tool-for-building-a-resilient-workforce
- Implementing Pay Transparency with Geographic Pay Differentials | JobTarget – https://www.jobtarget.com/blog/pay-transparency-with-geographic-pay-differentials
- Survey Finds CFP® Professionals Earn More and Enjoy High Career Satisfaction – https://www.cfp.net/news/2024/02/survey-finds-cfp-professionals-earn-more-and-enjoy-high-career-satisfaction
- This Is How Much New Financial Advisors Make in the U.S. – https://finance.yahoo.com/news/much-financial-advisors-u-145009706.html
- How to Compare Top Financial Advisor Certifications – https://investmentsandwealth.org/certifications/compare-financial-advisor-certifications
- Wealth Managers vs. Financial Advisors | Bankrate – https://www.bankrate.com/investing/financial-advisors/wealth-manager-vs-financial-advisor/
- Financial Advisor Job Outlook for 2024 and Beyond – https://finance.yahoo.com/news/financial-advisor-job-outlook-2024-151118858.html
- CareerOneStop – https://www.careeronestop.org/Toolkit/Careers/Occupations/occupation-profile.aspx?keyword=Personal Financial Advisors&location=33716&onetcode=13-2052.00
- Negotiating Non-Traditional Benefits: Beyond Salary and Healthcare – https://mrinetwork.com/hiring-talent-strategy/negotiating-non-traditional-benefits-beyond-salary-and-healthcare/
- Beyond Salary: Attracting and Retaining Through Unique Benefits – https://www.linkedin.com/pulse/beyond-salary-attracting-retaining-through-unique-benefits-seitz
- 10 Additional Perks to Consider When Negotiating Beyond Salary – PRIME Financial Services – https://pfinancialservices.com/10-additional-perks-to-consider-when-negotiating-beyond-salary/
- Latest Industry Data On How Much Financial Advisors Make – https://www.kitces.com/blog/how-much-financial-advisors-make-salary-bonus-compensation-latest-industry-benchmarking-data/
- How Much Do Advisors Make? Salary Insights – https://blackatlantic.galib.uga.edu/how-much-do-advisors-make-salary-insights
