Financial advisors offer their services to those who want advice in money management strategies, usually specializing in retirement plans and investments. Financial advisors research the market to identify new investment prospects. Many financial advisors start with a small firm but then switch to freelance work after earning experience.
Many financial advisors eventually stick to a specialty, such as a financial business analystcareer, retirement planning or managing small business owners' finances. However, general daily tasks include:
Consistently research investment options and stay abreast of stock market
Meet with clients to determine financial goals
Educate clients about their services, personal investment options, and possible risks
Suggest investments to clients or make investments directly for a client
Provide advice about debt management and cash management
Evaluate when clients' life changes necessitate new investment strategies
Financial Advisor Job Education Requirements
Typically, hiring parties want candidates for a financial advisor position to hold a bachelor's degree, most beneficially in finance, economics, accounting, mathematics, or any business-related major. Now, many universities and colleges offer financial planning tracks, as well. Depending on the employer and the financial advisor's specialization, a candidate will also need various certifications and/or licenses. These include securities licensing, or for those who sell security products, state licensure.
It's recommended to pursue coursework to aid in the examinations necessary to obtaining the Certified Financial Planner (CFP) certification. Plus, membership in the Financial Planning Association lends credence to any professional looking to expand a client base. In terms of advancement, a Master's in Finance or Business Administration helps those who want to secure a finance project manager position.
Financial Advisor Job Market
The U.S. currently employs approximately 183,420 personal financial advisors. Between 2012 and 2022, the job is expected to grow 27 percent, which adds 60,300 jobs in that timeframe. Considering the many baby boomers approaching retirement combined with longer life spans, it's likely that consultation for financial planning services will continuously increase. In terms of demand, New York, California, Texas, Illinois, and Florida have the highest level of employed financial advisors.
Financial Advisor Job Salary Information
According to the U.S. Bureau of Labor, the mean average salary for personal finance advisors is $48.04 per hour or $99,920 annually. The lowest-paid 10 percent earn around $33,190 annually while the top 90 percent's salary is at least $187,199 annually. Beyond salary, many contracted financial advisors receive substantial bonuses, especially if an advisor proves essential in recruiting clients.