Financial advisors work on commission and can make as little or as much as they want. It depends on their clients and how busy they are.
Company like Merrill Lynch has a 3-year salary program. Other firms like Smith Barney Morgan has a 2-year salary program. Another example would be MetLife, and they have a 5-month salary program.
The range is wide depending on the company you work for and the sector. Here are some data based on actual recent information. The sectors (insurance, brokerage, or bank) should be a representation of their respective industry:
-MetLife Financial Services Representative (Insurance based): Average compensation nationally is $25,000 a year. regardless of what you've been told. (they usually use the phrase, "unlimited income" a lot). Experience Requirement: Low - Compensation Range: High (Lower the compensation range, the
more uniform the compensation for all experience levels--i.e. medical doctors).
-Brokerage, Retail Investment Bank Financial Advisor (top 5 firms): Average compensation is probably $150k to $200k nationwide for all advisors; however, for advisors with less than 7 years in the industry, I'd say the average comp is about $60k a year. Experience Requirement: High - Compensation Range: High (higher the compensatioin range means higher potential for compensation as well as potential to make less. You can have one person making $50k a year and another advisor in the same office making $500k a year).
-Bank Channel Financial Advisor (top 3 banks): Average compensation nationwide is about $85k and $100k. Experience Requirement: Medium - Compensation Range: Med
-Independent Channel like, LPL: Average comp for advisors is probably about $60k. Experience Requirement: Med - Compensation Range: High
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Category: Personal Finance