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Over the years, a lot of people have asked me how much do financial advisors really make?
When we type in Google, “financial advisor salary ,” we see that the average advisor earns a little over $70,000 a year. But you have to realize, this number is completely false .
There are so many financial advisors out there that fail out of the industry which skews this salary to the lower end. If we took out all the first, second and third year financial advisors from the statistics, the average salary for financial advisors would be well over six figures.
I’ve had a chance to interview my mentor. who’s been an advisor for 25 years, where he gives us a full understanding of how much financial advisors really make. Here’s our exclusive interview:
Q: Tell us, where did you start working, and where are you today?
A: I started as a junior broker at Merrill Lynch. I was there for about 5 years until I ventured off to start my independent practice. Currently, I’m an independent
financial advisor based out of Dallas, Texas.
Q: What type of clients do you typically advise?
A: My clients are generally wealthy individuals who typically have about 150k – 500k in investable assets.
Q: Can you tell us how much new financial advisors typically make?
A: Financial advisors who make it past their first year typically earn around $60,000. I’m being conservative. Second year advisors usually see a drop in their pay since salary drops. We can expect them to earn around $58,000. Finally, third year advisors usually earn around $71,000. A financial advisors salary vary greatly, but if we scope it down to the typical client who invests 150k – 250k, then this is a pretty accurate grid.
Q: How much do mid-level financial advisors make?
A: After the initial training phase, a financial advisor is somewhat established. They’re earning a pretty decent income, especially for a 26 – 27 year old. At this stage, the brokers at my firm rack in around $90,000 – $130,000 a year. But the industry average should be closer to $118,000 a year for fifth year advisors.
Category: Personal Finance