Have some extra cash that you want to invest? Not sure where and when? Or how to make use of this money that it returns twofold to you in the future? Imagine having an advisor to guide you what to do with your money.
Well, this isn’t a dream. This is exactly what financial advisors do!
A financial advisor is a legally licensed professional who gives consultation to people about their financial situations. People with or without money come to these experts so that they are able to guide them professionally about the best ways of handling their cash.
A financial advisor is responsible for having outstanding knowledge about market trends and the stock market, and must be able to predict future shifts to suit their clients. Moreover, a financial advisor must have a skill to create financial plans for clients, and not just about where and how to invest; these plans should incorporate aspects like savings, budget, tax, insurance and other strategies.
This is everything that a financial advisor does: helps in managing their clients’ financial status and then regularly follows up too. They must be up-to-date with fluctuating market graphs to be able to improvise on strategies that are in the best interest of the client.
To become a financial advisor, there are a couple of educational and professional requirements. The first step is of course to earn a bachelor’s degree and get proper education, so if you’re enrolled in a recognized college, you’re one step closer to becoming a financial advisor!
It is recommended- but not necessary- to earn a bachelor’s degree in a relevant field that helps in your career as a financial advisor. A degree in Accounting and Finance, or Economics or even Business Studies is great; because they teach you all the theoretical aspects of the market and what to expect when you get in the practical world.
While you’re still at school and still studying, it would be a great opportunity to land an internship during summer break. Working at a financial advice firm or sole practitioner would give you hands-on experience about how to go about it, and what it is like to work under specialists and supervisors. You can take this opportunity to really learn about the profession; ask A LOT of questions!
Once your bachelor’s degree is complete and you also have some internship experience, you probably want to get on with your job hunt! For this, you need to document everything about your experience and qualifications in a resume, so make sure it is precise, relevant and impactful.
To become a specialist as a financial advisor, you obviously need some certificates and licensing to authenticate you as a genuine person.
Once all of this is done, as a financial advisor most people resume back to studying and getting higher education, like a postgraduate degree or even a doctorate. This will help you in staying ahead of quality education and theoretical aspects of your career. When you specialize in one field, like taxes or accounts, it is better to pursue further education in your chosen specialization.
Be sure to keep reading newspapers and watching authentic financial news channels to know how the market is performing- staying up-to-date with current affairs helps you in planning for current marketing strategies and financial plans.
By every state, the average salary of a financial advisor varies, in high paying states, the hourly and monthly pay is more than what it is in low paying states.
| State | Annual Salary | Monthly Pay | Weekly Pay | Hourly Wage |
| Wyoming | $76,201 | $6,350 | $1,465 | $36.63 |
| Massachusetts | $72,515 | $6,043 | $1,395 | $34.86 |
| Montana | $71,803 | $5,984 | $1,381 | $34.52 |
| Arizona | $71,065 | $5,922 | $1,367 | $34.17 |
| Hawaii | $71,005 | $5,917 | $1,365 | $34.14 |
| Indiana | $70,609 | $5,884 | $1,358 | $33.95 |
| New Jersey | $70,460 | $5,872 | $1,355 | $33.88 |
| Connecticut | $69,829 | $5,819 | $1,343 | $33.57 |
| Washington | $69,749 | $5,812 | $1,341 | $33.53 |
| New York | $69,628 | $5,802 | $1,339 | $33.48 |
| Georgia | $68,552 | $5,713 | $1,318 | $32.96 |
| Rhode Island | $68,230 | $5,686 | $1,312 | $32.80 |
| Wisconsin | $67,710 | $5,643 | $1,302 | $32.55 |
| Tennessee | $67,532 | $5,628 | $1,299 | $32.47 |
| Minnesota | $67,387 | $5,616 | $1,296 | $32.40 |
| Alaska | $67,382 | $5,615 | $1,296 | $32.40 |
| New Hampshire | $67,189 | $5,599 | $1,292 | $32.30 |
| North Dakota | $67,162 | $5,597 | $1,292 | $32.29 |
| Ohio | $67,039 | $5,587 | $1,289 | $32.23 |
| Alabama | $66,950 | $5,579 | $1,288 | $32.19 |
| Nevada | $66,852 | $5,571 | $1,286 | $32.14 |
| Maryland | $66,180 | $5,515 | $1,273 | $31.82 |
| Utah | $65,841 | $5,487 | $1,266 | $31.65 |
| Louisiana | $65,351 | $5,446 | $1,257 | $31.42 |
| South Dakota | $65,201 | $5,433 | $1,254 | $31.35 |
| Nebraska | $65,066 | $5,422 | $1,251 | $31.28 |
| Florida | $64,610 | $5,384 | $1,242 | $31.06 |
| New Mexico | $64,381 | $5,365 | $1,238 | $30.95 |
| Oregon | $64,298 | $5,358 | $1,236 | $30.91 |
| Virginia | $64,213 | $5,351 | $1,235 | $30.87 |
| Iowa | $63,896 | $5,325 | $1,229 | $30.72 |
| Kentucky | $63,805 | $5,317 | $1,227 | $30.68 |
| Kansas | $63,491 | $5,291 | $1,221 | $30.52 |
| California | $63,232 | $5,269 | $1,216 | $30.40 |
| Vermont | $63,168 | $5,264 | $1,215 | $30.37 |
| South Carolina | $62,288 | $5,191 | $1,198 | $29.95 |
| Colorado | $62,143 | $5,179 | $1,195 | $29.88 |
| Delaware | $61,867 | $5,156 | $1,190 | $29.74 |
| West Virginia | $60,525 | $5,044 | $1,164 | $29.10 |
| Oklahoma | $60,474 | $5,039 | $1,163 | $29.07 |
| Pennsylvania | $60,232 | $5,019 | $1,158 | $28.96 |
| Mississippi | $59,495 | $4,958 | $1,144 | $28.60 |
| Idaho | $59,207 | $4,934 | $1,139 | $28.47 |
| Maine | $58,953 | $4,913 | $1,134 | $28.34 |
| Arkansas | $58,425 | $4,869 | $1,124 | $28.09 |
| Michigan | $58,298 | $4,858 | $1,121 | $28.03 |
| Illinois | $58,108 | $4,842 | $1,117 | $27.94 |
| Texas | $57,157 | $4,763 | $1,099 | $27.48 |
| Missouri | $56,984 | $4,749 | $1,096 | $27.40 |
| North Carolina | $53,079 | $4,423 | $1,021 | $25.52 |
Note: Sample rates have been extracted online, courtesy of ZipRecruiter.
People often wonder, “Do financial advisors make good money?” The answer is yes. Financial advisors not only help clients solve financial issues but also earn a substantial income. Consequently, they charge a fair amount for their services.
Typically, financial advisors either charge a flat fee of $1,500 to $2,500 for a comprehensive financial plan or about 1% of assets under management (AUM) for ongoing portfolio management.
Regarding the cost of a financial advisor, most firms base their fees on the AUM. According to a 2018 RIA in a Box study, the average financial advisor fee is 0.95% of AUM. For a $1 million account, this translates to approximately $9,500 annually. Note that fees are often assessed quarterly, so your costs might fluctuate based on your investment performance.
Fees based on assets often decrease as the account size grows, ensuring high-net-worth individuals pay a reasonable rate. Conversely, those with smaller accounts face higher fees. For example, the average AUM fee for a $50,000 account is 1.18%, or $590 per year, as reported in a 2017 AdvisoryHQ study.
By understanding these costs, you can better evaluate whether the services of a financial advisor align with your financial goals and budget.
A financial analyst is a person responsible for tracking an organization’s financial performance. They analyze business performance and market conditions to create forecasts, and help senior management make tactical and strategic decisions by providing periodic reports.
The average salary of a financial analyst by state is:
State Name | Average Salary |
| Alaska | $82,900 |
| Alabama | $82,130 |
| Arkansas | $74,900 |
| Arizona | $74,200 |
| California | $95,680 |
| Colorado | $90,060 |
| Connecticut | $92,470 |
| District of Columbia | $91,390 |
| Delaware | $79,520 |
| Florida | $69,060 |
| Georgia | $75,230 |
| Hawaii | $75,824 |
| Iowa | $77,011 |
| Idaho | $75,280 |
| Illinois | $88,760 |
| Indiana | $76,729 |
| Kansas | $75,211 |
| Kentucky | $67,388 |
| Louisiana | $67,760 |
| Massachusetts | $87,060 |
| Maryland | $81,300 |
| Maine | $75,740 |
| Michigan | $78,490 |
| Minnesota | $85,940 |
| Missouri | $81,990 |
| Mississippi | $70,030 |
| Montana | $86,520 |
| North Carolina | $80,740 |
| North Dakota | $69,990 |
| Nebraska | $68,850 |
| New Hampshire | $81,590 |
| New Jersey | $94,070 |
| New Mexico | $79,830 |
| Nevada | $76,760 |
| New York | $107,160 |
| Ohio | $71,920 |
| Oklahoma | $62,600 |
| Oregon | $84,300 |
| Pennsylvania | $78,054 |
| Puerto Rico | $50,570 |
| Rhode Island | $78,820 |
| South Carolina | $68,260 |
| South Dakota | $69,240 |
| Tennessee | $69,130 |
| Texas | $83,060 |
| Utah | $72,060 |
| Virginia | $86,550 |
| Virgin Islands | $49,440 |
| Vermont | $74,560 |
| Washington | $80,300 |
| Wisconsin | $71,330 |
| West Virginia | $69,190 |
| Wyoming | $75,710 |
Note: Sample rates have been extracted online, courtesy of CareerExplorer.
A financial advisor helps clients manage their finances, from investments and insurance to taxes. They guide clients in creating financial plans, investment strategies, and more.
Most financial advisors earn a salary or work on a commission basis if employed by a company. Independent advisors typically charge high fees for their services, which include consultations, financial planning, and ongoing support.
To become a successful financial advisor, you must meet educational requirements and obtain necessary legal certifications. Gaining experience through internships and working under experienced professionals can be invaluable.
By following these steps, you can build a solid foundation for a career as a financial advisor.
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