How Much Do Financial Advisors Make (2023 Update)
Understanding the Earnings Potential of Financial Advisors
How much does a financial advisor make? That, my friend, is an excellent question. To fully grasp all you stand to gain in this rewarding profession, you will need a cup of coffee, a comfy seat, and the time to read this article I've carefully crafted for you today.
If you stumbled upon this page, you're probably trying to answer a pertinent question: "how much do financial advisors make?"
Well, to be honest, you probably wouldn't believe me if I told you.
There's a lot of confusion about how much financial advisors make, which is understandable because our salary is either understated or misrepresented. To be clear, all I ask is that you hear me out.
Here's the thing:
The amount of money you'll amass as a financial advisor is directly contingent on how well you create enough loyal clients and build a culture of trust. Do these, and it can quickly become your fairy-tale ending when revenue gains pile high as snow in winter.
But like the story of rags to riches (or rather, dollars to crumbs), plenty look at the industry and believe that building wealth and prestige through financial savvy is impossible. Agreed, most financial advisors will amass fortunes, but such a fable doesn't always end with a happily ever after.
The good news is that I do have the answer. In a moment, I'll show you how you can also earn a high six-figure.
Hang on a sec… more on this later.
We'll start at the beginning and go from there.
For now, I'm going to answer an all-important question for the benefit of aspiring advisors and the general public who might be unaware:
How do financial advisors make money?
People think our profession is all about making money. The truth is that the real compensation comes from helping someone improve their financial situation by identifying opportunities to save and grow their money and make investing less intimidating.
Financial advisors charge fees for this service, which can vary widely. And that's what we'll discuss from here forward.
Let's kick it off:
Financial Advisors Salary
Figuring out how much money a financial advisor makes is like trying to hit a moving target. The answers from relevant sources in the industry are as varied as the places one might go.
Here's what some of the trusted sources say:
U.S. Bureau of Labor Statistics
According to the U.S. Bureau of Labor Statistics, the median annual wage for personal financial advisors was $94,170 in May 2021. It means half of the financial advisors earned more than that, and half earned less. One in ten earned less than $47,570, while one in ten made more than $208,000.
A fun fact! The median family income in the U.S. for the 2021 fiscal year is $79,900.
National Estimates For Personal Financial Advisors
Image Courtesy BLS.
Indeed.com: On average, a financial advisor goes home with $74,804 per year in the United States, and the average commission rate is $22,500/year.
As far as experience goes:
The average salary of financial advisors with 1-2 years of experience in the U.S. is $63,210 while those with over 10 years of experience earn over $107,068 per year.
Glassdoor: According to Glassdoor, the average salary of a financial advisor is $118,385 yearly.
ZipRecruiter: Average salary of an associate financial advisor across the nation is $63,258, according to ZipRecruiter.
Mint: Mint puts the average annual salary for financial advisors at $98,000/year. The above is based on data from 16,446 TurboTax users who reported their occupation as Financial Advisor. Lastly, financial advisors earn anywhere from $29,000 to $518,000 a year.
How Much Financial Advisors Earn In Every U.S. State
If you're wondering, "What is the financial advisor's salary by place of employment?"
The map depicts the average financial advisor salary in each state:
Image Source: BLS.
Let's Take it a bit further…
The best-Paying States For Personal Advisors (U.S.A)
You might be tempted to believe that the best-paying state for financial advisors is one with much sunshine. But it's a little more complicated than that.
The following states are among the top 5 paying states (annual mean wage) for personal financial advisors, according to the U.S. Bureau of Labor Statistics:
- New York - $158,040;
- District of Columbia - $156,670;
- Washington - $144,890;
- Massachusetts - $142,630;
- Montana - $140,700.
And if you're a financial advisor in the following ten metro areas, you can expect to make more money than in any other:
- Barnstable Town, MA: $ 83.07/hour; $172,780/year.
- San Francisco-Oakland-Hayward, CA: $ 77.41/hour; $161,010/year.
- East Stroudsburg, PA: $76.34/hour; $158,790/year.
- New York-Newark-Jersey City, NY-NJ-PA: $75.77/hour; $157,610/year.
- Bremerton-Silverdale, WA: $72.84/hour; $151,510/year.
- Albany-Schenectady-Troy, NY: $71.78/hour; $149,290/year.
- Anchorage, AK: $71.22/hour; $148,140/year.
- Seattle-Tacoma-Bellevue, WA: $71.10/hour; $147,880/year.
- Sioux Falls, SD: $70.74/hour; $147,130/year.
- Pittsburgh, PA: $70.18/hour; $145,980/year.
Now, when you look at top paying states for financial advisors in the U.S., it is easy to understand why.
These states are home to some of the country's most prestigious businesses and financial institutions.
For example, the Big Apple is known for its bustling skyline and the world-famous Wall Street, so it's no surprise that New York City has the highest median annual wage for personal advisors.
But before you go running to N.Y. or the other lucrative spots for financial advisors…
Here's a fun fact:
The best-paying state for financial advisors can easily become where you live. You don't need to move to Silicon Valley to find work as a financial advisor, but you need to have access to local clients with whom you can build long-term relationships that will help your career flourish—struggling to land insurance clients? Hop on a FREE strategy call - and you'll be blown away by what you've let slip right under your nose.
Summary: What To Make Of How Much Financial Advisors Earn
These numbers show that there is potential to make what you're worth as a financial advisor if you're willing to put in the work and elbow grease required to achieve it.
However, it's important not to draw too many conclusions from this data because multiple factors influence compensation levels and earning potential.
There's one thing I can say for sure:
I believe you can earn more than is quoted in the various sources.
So I fancied asking the world wide web, "what companies pay the most for financial advisors?" With my eyes shut and hopeful thinking, I waited for the result, which was awful. See for yourself below:
"What's your point, Taylor?"
I'm glad you asked.
Well, I think salary may not be one of the top perks of the job. For this reason, most advisors - well, those making a killing don't work for a salary, but they've built a business around themselves.
Therefore, I'd bet that most of those financial advisors polled didn't get paid on a commission, thus why I said you can earn more as an independent "who wants it."
I don't want you to miss the ball here…
Honestly, I would not have said anything if it wasn't true. Most financial advisors aren't paid solely on commission, but I bet a good portion of them don't get brought into the office often enough to check in and say hello.
If you're starting and don't know where all the opportunities are, it's time to start looking for new ways to market yourself and build your client base.
But let's move on and get down to business by breaking down the best ways for you to determine how much money you can potentially make as a financial advisor.
How Much Can You Earn As A Financial Advisor?
Everyone wants to know how much they can earn. So I'm going to make it quick.
The kind of clients you have (e.g., high net worth individuals, corporations), the number of clients you can serve, the level of expertise you bring, and the structure of your business will ultimately determine your monthly income.
But I can tell you this… It's a very healthy number that is nothing short of amazing. If you bring value AND want wealth, you won't be disappointed.
Ready for some juicy details?
How To Make Six Figures As A Financial Advisor
You've probably seen the movie Wall Street, with Michael Douglas playing the role of Gordon Gekko. Do you remember how everyone was talking about "getting rich," and there was a big competition to see who could get richer faster?
Well, that's what the world of a financial advisor is like out there - It's full of agents, all competing for business…
And if you follow the zig-zag plan through the forest, you will inevitably be eaten by a bear. Well, not literally. But in our business, we have bears in the forest (many of which are bots).
That's why I want to share with you an open secret.
And that secret is…
I've made more money as a financial advisor than I ever thought possible. And this isn't just an arbitrary number - it's based on real data, actual results.
So let's face it:
I know a thing or two about how to make six figures as a financial advisor.
The only way to stand out and make a name for yourself is to equip yourself.
You can find extraordinary success by combining effective techniques with your own expertise.
Ultimately, you only need to master four proven pillars of selling to make the big bucks!
- The Approach: Finding and filling an endless pipeline of prospects.
- The Fact-find: You're not just selling products. You're helping clients make informed decisions that put their needs first. The best way to do that is to know what they need, their risk situation, and their investment goals.
- The Opportunity: A fact find is like a maze full of sale opportunities, and the more equipped you get, the better at finding these opportunities you'll become. As you read this post, I am willing to wager that you have a few sales lying around your feet. Want to take me up on my bet? Get in touch!
- The Close: The key to making six figures is presenting solutions that get your clients to act today. If you do a good job with the first 3 steps, then it’ll be much easier to get them to write a check. The Close is critical to any business; if you want to get paid, it's something you need to master.
Yet, even though most advisors, including yourself, are aware of these pillars of selling - most don't use them properly.
Because too many advisors are still stuck in old habits! For example, they "sell" rather than position themselves as a "solution provider." They think they only need to be in the office in suits and ties before they can land clients.
The truth is, if you want to make six figures as a financial advisor, it's not all about the big picture.
It's about the small details.
The selling process is full of nuance, and if you want to succeed, you must master the details.
You need to be able to answer the question "why should I buy from you?" with a compelling and unique answer so that they'll say yes - but also so that they'll buy from you again and again. You need to be able to give your prospecting an edge, learn how to "prospect up," confidently close high-net-worth individuals, and more if you want to live the life of your dreams - did I hear you say financial freedom? Oh yes, that’s what I’m talking about - with all the bells and whistles to go with it!
The Taylor Method is about the game-changing details that separate the 1% of top financial advisors from the rest of the pack.
We all know the saying: if you work even harder, serve as a fiduciary to your clients and put their best interests at the forefront, you will provide solutions that align with their needs, goals, and objectives. This will naturally earn you a six-figure salary. Don't be fooled - it's not easy! The Taylor Method is not about how to “sell products.” We focus on teaching you how to identify problems and provide solutions..
It's about getting you from dreamer to doer!
The Taylor Method is specifically designed to teach advisors the "sales language and process" that your prospects can understand and offer you the proven techniques to propel your success quickly. And that's what makes it unique! Learn more here.