What is a Financial Advisor?
A Financial Advisor is a professional who deals with informing and educating clients about wealth, investing and other money matters, and sometimes managing these financial affairs as well. It is a generic term that includes stockbrokers, financial planners, investment advisorstax preparers, bankers, insurance agents and estate planners.
According to salary information website PayScale, as of January 2021, the average salary for a financial advisor in the United States was $59,708, with most salaries ranging from $38,000 to $109,000. In addition to salaries, financial advisors also receive remuneration in the form of bonuses, profit sharingand commissions.
The average annual bonus received by a financial advisor ranges from $2,000 to $31,000. The average annual profit sharing compensation ranges from $995 to $18,000. Average annual commission compensation ranges from $4,000 to $182,000. The average total salary for financial advisors ranges from $39,000 to $139,000.
Salaries for financial advisors also vary by experience. On average, a late-career financial advisor earns 32% more than average, an experienced financial advisor earns 38% more than average, a mid-career financial advisor earns 15% more than average, and a beginner financier earns 18% less than the average.
Financial advisors with investment management skills earn 6% above average. Those with investment planning skills earn 3% above average, and advisors with portfolio management skills earn 2% above average. Those familiar with financial modeling earn 4% above average.
Some financial advisors also receive compensation in the form of health benefits. A total of 75% of financial advisors receive medical benefits, while 60% receive dental benefits and 52% receive vision benefits, with only 24% receiving no health benefits.