Financial Adviser: Job Profile & Salary

Overview

Financial advisers are like life coaches, but for your money. They help clients figure out how to budget, save for retirement, pay off debt, and invest. If you enjoy telling other people what to do with their money—and doing the research to come up with good answers and sound financial plans—then this could be your dream job. There are many career paths within this profession, including working for large financial services firms, boutique advisory practices, or as solo practitioners. Your earnings will generally reflect your level of experience, the type of clients you have, and the sophistication of the services you provide. Many advisers develop specialized skills over time and tailor their practices accordingly, particularly in the insurance, tax, and estate fields. If that appeals to you, you may work closely with lawyers and accountants who have similar specializations. Also note that lawyers and accountants often obtain professional certification as financial advisers.

Financial advising jobs are expected to be one of the faster-growing occupations over the next decade, with a projected growth rate of 32.1 percent between 2010 and 2020, according to the Bureau of Labor Statistics. During that time frame, 66,400 jobs are expected to be added to the 206,800 jobs that already exist. The impending retirements of 78 million baby boomers is expected to create strong demand for advisory services. However, two other trends could complicate the forecast. The market meltdown of the most recent recession left many people deeply suspicious of financial professionals, and many websites have developed increasingly powerful advisory tools that may meet consumers' needs.

Salary

Financial adviser salaries are above average—median annual wages were $64,750 in 2010, with the lowest-paid 10 percent earning around $32,660 and the highest-paid 10 percent earning more than $166,400. The highest-paid in the profession work in New York, California, and Texas.

Training

Advisers must develop and maintain sophisticated skill sets; expertise is central to an adviser's appeal to potential clients. A bachelor's degree is necessary, and an advanced degree can be an effective marketing tool. Obtaining and maintaining the certified financial planner designation is recommended, as is membership in the Financial Planning Association or other industry groups. Advisers often obtain securities licenses and may earn substantial portions of their income through investment fees. Many advisers also sell insurance products, which requires state licensure and professional certification.

Reviews and Advice

Personal finance advisers can work for themselves or for a larger firm or company. Either way, communication skills are essential, since advisers talk to clients about very personal topics, including marriage, divorce, and death. "Financial planning is a very client-centric business—personal attributes are very important, including the ability to listen, be responsive to client needs, and empathy. A background in customer service or sales service would be a plus," says Cathy Curtis, an independent, fee-only financial adviser based in Oakland, Calif.

Curtis recommends first studying to become a certified financial planner, which requires specific coursework, and gaining work experience at a small- to mid-sized financial planning firm. "I wouldn't be picky about my first job in the industry; I would use it as a way to learn about the business," she says. Curtis also recommends joining a professional association such as the Financial Planning Association or National Association of Personal Financial Advisors.

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