How To Become A Personal Financial Advisor
Personal financial advisors help others make good choices with their money and investments. It is important to spend our money wisely, so that we have enough money for our future. As a financial advisor, you will help teach people about long-term planning strategies.
You must be a good communicator, financially savvy, and able to make wise decisions for your clients. Several years of education and experience are required to become a financial advisor.
Why Become A Personal Financial Advisor
There is a saying: “Earning money is easy; keeping it is difficult.” We all receive a paycheck from our employment or business. Earning money is fun, but it can be difficult to know what to do with the money once we receive it. Once we get done paying off all of our monthly bills, grocery shopping, paying for things for our children, and other expenses, we might not have any cash left over. Life gets expensive quickly.
Personal financial advisors help people make long-term planning strategies for their wealth. It’s important to plan for the future. College savings, retirement, life insurance, buying a new home – these are all things that will cost money in the long run. Financial advisors help people make decisions on how to invest their money wisely today, so that they can have more money for years to come.
“Financial advisor” is a general term within the industry and may refer to somebody within a few different occupations: a registered investment advisor (RIA), or a registered representative, also sometimes called a stockbroker.
Everybody earns money, but most people don’t know how to spend it wisely. As a financial advisor, you will teach people good money skills. You will help them make long-term plans with their money. You will be trusted to know how to make strategic and wise decisions, recommending investments that are in sync with the goals of your clients.
Personal Financial Advisors should possess the following qualities and skills:
- Great Financial Literacy
- Long-Term Strategist
- Big Picture Thinker
- Good Communicator
- Good at Establishing Relationships
- Great at Sales
Personal Financial Advisor Work Environment
Financial advisors can be found in a variety of settings. Some are employed by large companies, where they focus on investments, finance or insurance. Financial advisors can work at small, local firms as well. Many choose to become self-employed, or even work as consultants. People come to financial advisors because of their insights and knowledge of their field. It is always important to build solid relationships with people, network, and show people the importance of having a financial advisor.
Personal Financial Advisor Salary
The median annual salary for financial advisors was $89,160 in 2015, according to the United States Bureau of Labor Statistics.
The type of compensation can vary for financial advisors. Some are paid by commission, and get paid depending on how many products they sell to clients. Other financial advisors get paid based on hours spent with clients. A large part of being a financial advisor is being a salesperson: marketing the products you have, and recommending clients purchase certain products. Financial advisors must be good at marketing and selling their materials. Additionally, financial advisors should be good at networking and growing their client base. These strategies will help them increase their salary.
Average Personal Financial Advisor Annual Salary
The average annual salary for personal financial advisors is $124,140 a year. Salaries start at $40,800 a year and go up to $208,000 a year.
Average Personal Financial Advisor Hourly Wage
The average hourly wage for a personal financial advisor is $59.68. Hourly wages are between $19.62 and $100 an hour.
Stats were based out of 200,920 employed personal financial advisors in the United States.
Highest Paying States For Personal Financial Advisors
- 1. New York $79.86 / hr $166,100 / yr
- 2. California $67.84 / hr $141,100 / yr
- 3. Connecticut $65.92 / hr $137,120 / yr
- 4. District of Columbia $65.28 / hr $135,770 / yr
- 5. Maine $64.60 / hr $134,380 / yr
Top Paying Cities For Personal Financial Advisors
- 1. Montgomery, AL $101.32 / hr$210,750 / yr
- 2. Haverhill, MA $91.72 / hr$190,770 / yr
- 3. Santa Fe, NM $90.65 / hr$188,550 / yr
- 4. North Port, FL $89.73 / hr$186,650 / yr
- 5. Lawrence, MA $87.36 / hr$181,710 / yr
Data provided by the Bureau of Labor Statistics (BLS).
Personal Financial Advisor Career Outlook
The field for financial advisors is expected to grow 30 percent from 2014 to 2014, according to the United States Bureau of Labor Statistics. The country average is six percent, making this career field grow at a much faster pace than all other occupations. Financial planning services are expected to be needed. As people live longer lives, there will continue to be the need for life insurance, retirement, college tuition, and other long-term planning investments.
Personal Financial Advisor Degree
A financial advisor is a person who people come to for their knowledge about money and long-term investing. An advisor must be able to blend their education along with their interpersonal skills and experience, in order to be good in this field.
Step 1: Undergraduate education. A bachelor’s degree in finance, economics, business administration, or similar fields will prepare you for a career as a financial advisor. Be sure to take classes in mathematics and business, as well as public speaking.
Step 2: Consider an internship. Internships are a great way to learn more about the finance industry and whether this field is perfect for you. It is also a good way to network and meet people who can help you find a job in this field.
Step 3: Become certified. Typically after three years of work experience, you can become qualified to be certified as a financial advisor. There are many types of certifications available, such as a certified financial planner (CFP), or as a registered investment advisor (RIA) or as a chartered financial analyst (CFA). Check with your state to see what laws exist and what licenses are required to practice where you live.