What Is a Financial Advisor?
A financial advisor is a professional who is engaged in the business of informing and educating clients about wealth, investment and other sorts of money matters – and sometimes managing these financial affairs as well. It's an umbrella term that includes stockbrokers, financial planners, investment advisors, tax preparers, bankers, insurance agents, and estate planners.
According to the salary information website PayScale, in 2018 the average salary for a financial advisor in the United States is $57,059, ranging from $33,097 to $128,664 with a median salary of $58,636. In addition to salaries, financial advisors also receive compensation in the form of bonuses, profit sharing, and commissions.
The average annual bonus received by a financial advisor ranges from $1,035 to $34,169. The average annual profit-sharing compensation ranges from $752 to $20,594. The average annual commission compensation ranges from $4,862 to $223,295. The average total pay for financial advisors ranges from $35,833 to $165,965.
Salaries for financial advisors also vary with experience. On average, a late-career financial advisor earns 104% above average, an experienced financial advisor earns 51% above average, a mid-career financial advisor earns 18% above average and an entry-level financial advisor earns 20% below average.
Financial advisors with portfolio management skills earn 12% above average, and those with investment management skills earn 16% above average. Those with financial planning skills earn 44% above average, with sales skills earn 2% above average, and advisors with insurance skills earn 10% above average. Those who know financial modeling earn 5% above average.
Some financial advisors also receive compensation in the form of health benefits. Fully 77% of financial advisors receive medical benefits, while 61% receive dental benefits, and 53% receive vision benefits, with only 21% receiving no health benefits.