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We all know being a financial advisor can be a great career. Getting into the business can be the best decision of your life. Although you build your career yourself, advisors in general make more (or less) money based on their geography. How do you stack up?
So, You Call Yourself an Advisor…
The Bureau of Labor statistics does an excellent job tracking how different jobs pay in different parts of the country. If you consider yourself a financial advisor, you likely fall into one of three different categories: Securities, Commodities & Financial Services Sales Agents (41-3031) (1) Mean Annual Wage $ 97,440Buy and sell securities or commodities in investment and trading firms or provide financial services to businesses and individuals. May advise customers about stocks, bonds, mutual funds, commodities and market conditions. Insurance Sales Agents (41-3021) (2) Mean Annual Wage $ 66,990Sell life, property, casualty, health, automotive or other types of insurance. May refer clients to independent brokers, work as an independent broker or be employed by an insurance company. Personal Financial Advisors (13-2052) (3) Mean Annual Wage $ 124,140Advise clients on financial plans using knowledge of tax and investment strategies, securities, insurance, pension plans and real estate. Duties include assessing client’s assets and liabilities, cash flow, insurance coverage, tax status and financial objectives.Where Are the Best (and Worst) Places to Be a Financial Services Sales Agent?
This appears to be a blast from the past. The description is similar to an advisor doing transactional business. You will notice the Bureau of Labor Statistics thinks there are lots of them out there.
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Many people identify themselves first as an insurance agent, then as a financial advisor. Here’s how the numbers stack up:
Are There Places Where Agents Make More Than Advisors?
Considering the two job categories listed above, it’s often assumed people selling securities earn more than people selling insurance. It’s not always the case. Here are a few examples:
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This higher paying job sounds closest today’s description of a financial advisor. It embraces financial planning. It helps clients in traditional and non-traditional areas. It addresses cash flow (budgeting), goal setting and accounting issues. Financial planners and some accountants might say: “That’s my job description. “
