Financial Advisor Salary: Your 2024 Guide

The financial services industry is a growing field offering various career paths for many professionals, including financial advisors. Financial advisors guide individuals, families, and businesses on many topics, such as managing investments, mortgages, and taxes.

The US Bureau of Labor Statistics (BLS) projects a robust 13 percent growth in the field from 2022 to 2032 [1]. In addition to increasing job demand, financial advisors often enjoy flexible work environments, including working independently or as part of larger financial institutions such as banks or brokerage firms.

Several types of financial advisors exist, each with its own requirements and necessary qualifications. Financial advisors might be registered investment advisors, certified financial planners, chartered financial consultants, wealth advisors, or, in some cases, certified public accountants (CPAs).

Your salary as a financial advisor will vary depending on your education level, certifications, location, and experience level. Pursuing an advanced degree or certification—such as the Certified Financial Advisor (CFA), Certified Financial Planner (CFP), or Financial Industry Regulatory Authority (FINRA) license—can significantly boost your earnings potential.

What is a financial advisor?

Think of a financial advisor as someone who gives guidance about financial matters. These professionals take an active role in helping their clients create, manage, and reach their financial goals. A financial advisor’s client base could be anyone from individuals and families to small businesses and multinational corporations. The role often involves creating long-term relationships and requires sharp planning skills to help clients meet their goals while providing education about risk management, taxes, investment strategies, and planning for retirement.

Financial advisors provide a broad array of services depending on each client’s needs and the type of financial advisory they specialize in. As a financial advisor, you help your clients define, prioritize, and plan for their financial goals. You can help them navigate significant life events, weather the changes in the market, and better understand all the rules that govern the financial world. Common activities involve creating a comprehensive financial plan, analyzing investment opportunities, and recommending strategies for minimizing taxes and managing risk. Additionally, financial advisors can help clients navigate complex financial situations, such as the birth of a child, the purchase of a home, or a sudden windfall.

Several different types of financial advisors exist, each with their own areas of expertise and qualifications. These include:

• Registered Investment Advisors (RIAs): The Securities and Exchange Commission (SEC), or general state regulators, register and regulate RIAs. RIAs advise clients on securities investments, and they must act in the best interests of their clients. They typically receive pay based on a fee structure determined by a percentage of the assets they manage.

• Certified Financial Planners (CFPs): CFPs complete a rigorous education and certification process and must adhere to a strict code of ethics. This credential helps establish expertise, making it easier to attract clients for comprehensive financial planning services. Services include estate planning, retirement planning, and investment management. 

• Chartered Financial Analysts (CFAs): CFAs complete a series of exams and have extensive knowledge of investments and financial analysis. They often work in portfolio management or wealth planning roles.

• Insurance Agents: Insurance agents specialize in helping clients choose and manage insurance policies, such as life insurance and disability insurance. You must obtain a license from your state’s insurance commission for this role.

• Certified Public Accountants (CPA): Certified public accountants are professionals who specialize in accounting and receive a license from the state’s Board of Accountancy are CPAs. They must pass rigorous exams, attain a certain level of education, and have multiple years of experience to gain a state-issued license. 

What is a financial advisor’s salary?

According to the BLS, personal financial advisors in the United States earn an average of $150,670 annually [2]. Compared to $65,470, the national average across all jobs in 2023, financial advisors have considerably higher earning potential [3]. Additional salaries for financial advisors reported by four different organizations follow [4, 5, 6, 7]:

*All salary data as of August 2024

However, your pay as a financial advisor depends on your education, certifications, experience, and location.

What factors impact financial advisor salary?

As a financial advisor, your yearly salary depends upon various factors, including your education level, the specific certifications you attain, your location, and your experience level.

Education

The typical entry-level education required for a financial advisor is a bachelor’s degree. Financial advisors often pursue degrees in business, accounting, economics, finance, or other fields. According to Zippia, financial advisors with a bachelor's degree earn an average of $68,144 per year [6].

Pursuing an advanced degree helps to boost your earning potential in this field. Financial advisors with a master's degree earn an average of $74,942, according to Zippia [6]. Furthermore, candidates with advanced degrees often hold senior-level roles, such as financial manager. These roles typically come with higher salaries. Senior financial advisors, for instance, make an average annual salary of $99,031 [8]. 

One advanced degree option is a Master of Business Administration (MBA). Pursuing this degree, you specialize in various areas of study, such as financial planning or banking. Other degree options include a Master of Finance or a Master of Accounting. 

Certification

Several certifications for financial analysts recognized in the financial industry can also be beneficial. Two well-known and respected certifications are the Chartered Financial Analyst (CFA) designation and the Certified Financial Planner (CFP) certification. Take a closer look at each below.

Chartered Financial Analyst (CFA) 

The CFA designation, awarded by the CFA Institute, is a global credential. To obtain the CFA designation, candidates must pass three exams covering economics, ethics, financial analysis, and portfolio management. Additionally, you need at least three years of relevant experience, and you must accept and adhere to the institute’s code of ethics. The industry holds this designation in high regard. It’s often considered a prerequisite for many high-level positions in finance. CFAs make an average annual salary of $96,200 [9].

Certified Financial Planner (CFP)

This certification, awarded by the Certified Financial Planner Board of Standards, has stringent prerequisites, including a bachelor’s degree, 6,000 hours of professional experience in financial planning, completion of CFP Board-registered education, and a certification exam. The CFP certification covers various financial planning topics, including retirement, estate, tax, and insurance. Financial advisors who hold the CFP certification receive recognition for their comprehensive financial planning knowledge and their commitment to ethical standards. According to Glassdoor, CFPs make an average annual salary of $102,515 [10].

FINRA licensure

A FINRA license is another standard certification financial analysts work to attain and sometimes need to complete for a specific role. It refers to a securities license granted by the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization that strives to protect investors and the market by overseeing the US securities industry. If you want to work in specific roles in the securities industry, such as stockbrokers or financial advisors, FINRA licenses are a requirement.

Several types of FINRA licenses, also known as registrations or qualifications, exist for individuals seeking specific roles in the industry. To obtain a FINRA license, individuals must pass a qualifying exam and register with FINRA. They must also work for a FINRA-registered firm and adhere to FINRA rules and regulations. Salaries will vary; however, attaining a FINRA license can boost your earning potential. For example, Salary.com estimates that investment analysts make around $108,447, while a FINRA-registered analyst averages $130,605 [11, 12]. 

Experience

As you gain more experience as a financial analyst in your first few jobs and move from entry-level to senior-level roles after developing your client base, the salary you can expect rises. According to Glassdoor, financial analysts with 10 to 14 years of experience in the field make an average annual salary of $91,756 [13]. 

Location

Location is another significant factor determining your salary due to variances in the cost of living between cities and the overall demand in specific locations. Financial advisors working in major cities make more money on average, with New York City and Boston being two of the top cities. The top five cities for average financial advisor salary are below [6]:

Job outlook for financial advisors

According to the BLS, the job market for financial advisors in the United States will grow 13 percent from 2022 to 2032. This equates to an average of roughly 25,600 job openings per year for financial advisors during that span. Many openings may arise as workers switch professions or retire [1]. 

Important skills for financial advisors

Success in this field requires a complex set of technical and workplace skills. Three examples of each type of skills essential for financial advisors to possess are as follows:

Technical skills

• Knowledge of finance and investment: Financial advisors must deeply understand the financial markets, investment products, and financial planning strategies.

• Analytical skills: Financial advisors regularly use insights from financial data to assess risk and reward and develop investment plans that align with their client's financial goals.

• Sales skills: Financial advisors use these skills to sell themselves and their services to potential clients, which requires communicating complex financial information clearly to best meet a client’s needs and goals.

Workplace skills

• Communication: You’ll use your communication skills to communicate with clients and build interpersonal relationships with colleagues, associates, and other stakeholders. You must break complicated information into simple, understandable terms and actively listen to your client's needs and concerns.

• Interpersonal skills: Financial advisors need to build strong relationships with clients, which requires the ability to establish trust, empathize with clients' needs, and maintain a professional demeanor. This includes active listening, verbal communication, and nonverbal communication.

• Problem-solving: Financial advisors must be able to identify problems, develop solutions, and implement effective strategies to help clients achieve their financial goals.

Develop financial advisor skills on Coursera

If you want to become a financial advisor, completing a course or receiving a relevant certificate is a great place to start. On Coursera, you can enroll in some of the top financial courses in the world. 

For example, consider taking a Financial Markets course from Yale University to discover more about behavioral finance and economics. If you already have basic experience in the financial field and want to gain a deeper understanding of specific topics such as equilibrium asset pricing models, consider enrolling in Portfolio Selection and Risk Management, offered by Rice University.