A financial advisor is a professional who helps clients with their financial matters. These professionals help their clients make important decisions and help them to invest their money wisely. For example, a couple planning to have a baby might seek financial advice from a qualified professional to help them make the right investments. Similarly, investors may seek assistance from a qualified professional to choose the best stocks to invest in.
The compensation of a financial advisor depends on several factors. In general, compensation for financial advisors is based on commissions or fees. In most cases, the compensation structure varies according to the size of the firm. However, there are some common compensation models that have proven to be successful for financial advisors.
In addition to the annual income, financial advisors may also be eligible for performance-based bonuses. The Bureau of Labor Statistics reports that the average annual income for financial advisors is $124,140. The highest-paid financial advisors earn more than $200,000 per year. However, it is important to note that not everyone will have a need for a financial advisor. As a result, a career as a financial advisor is still a great choice for those seeking a stable income.
A financial advisor salary should be close to the average salary for the position in their state. In Maine, for example, a financial advisor should earn about $101,268 per year. In Maine, the highest-paid financial advisors are Investment Consultants. In this state, the median salary for Investment Consultants was $109,300, while the lowest-paid ones earned $80,000.
Financial advisors make the most in the Northeast, where they are concentrated in large cities. In May 2017, Wall Street, New York, had the highest average annual mean salary for financial advisors. Other states in the region were close behind, including Connecticut and the District of Columbia. Meanwhile, Maine and New Hampshire earned just under $76,050. Some of these differences may be due to low demand in these regions.
A financial advisor can choose to charge clients a fixed fee or a percentage of the assets they manage. This is known as a fee-based model. Fee-only advisors are legally bound to follow a fiduciary code. However, they are not legally required to disclose the amount of commissions they receive. As a result, they can be more inclined to recommend a specific product or service to their clients.
In New York, the average salary for a financial advisor is $131,520 a year. In comparison, the salaries of other jobs in the city are about 7% lower. Despite the low average salary, financial advisors earn a higher wage than actuaries and treasurers. Meanwhile, the job market for financial advisors is projected to grow by 14.9% over the next few years.