Best Careers: Financial Adviser

The rundown:

Financial advisers provide a broad range of budgeting, tax, investment, and estate advice. There are many career pathways, including working for large financial services firms, boutique advisory practices, and as solo practitioners. Your earnings will generally reflect the sophistication of the services you provide, your clients, and your level of experience. 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, especially, accountants often obtain professional certification as financial advisers.

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The outlook:

This is expected to be one of the faster-growing occupations over the next decade, with a projected growth rate of more than 30 percent between 2008 and 2018, according to the Labor Department. In 2008, financial advisers held about 208,400 jobs, and about one-third of those were self-employed. 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 sustained decline in securities prices during 2007 and 2008 was not foreseen by most advisers, and the value of their counsel has been questioned by many investors. At the same time, many Internet sites have developed increasingly powerful advisory tools that may meet consumers' needs.

Money:

Median annual wages were $68,200 in 2009, with the lowest-paid 10 percent earning less than $33,790 and the highest-paid 10 percent earning more than $166,400. Many advisers also earned substantial bonuses, which are not included in this wage data.

Upward mobility:

Several career tracks could lead to more responsibility and higher pay. Within larger organizations, experience and seniority can lead to promotions. Developing specialized skills also can raise income substantially. Setting up one's own practice is an attractive career path for many advisers—roughly 30 percent of financial advisers work for themselves.

Activity level:

Varied. As with other professions, there is a very high ceiling on the income potential of a financial adviser—and the hours it takes to realize that potential. When advisers set up their own practices, they become owners of a small business and assume many related responsibilities, including the often extensive efforts to attract new clients. On the other hand, advisers who work within larger organizations can avoid 80-hour weeks but will usually forgo the higher incomes that tend to correspond with such heavy workloads.

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Stress level:

Up there. Financial advisers deal with people's money, investments, and livelihoods. Few things can be of greater import to customers. You will often sit down with clients and deliver news they don't want to hear—whether you're talking about underperforming investments, the need for them to rein in spending, or other adverse developments. Even in good times, your clients' expectations can easily outpace performance.

Education and preparation:

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.

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Real advice from real people about landing a job as a financial adviser:

Communication skills are essential to this job. After all, financial advisors talk to people about intimate details of their lives, such as marriage, divorce, and death. "Interpersonal skills as well as analytical skills to help people come up with solutions to their problems are important," says Karen Klugh of the American Financial Services Association.