Financial Planners Earn Money By Helping
Others Succeed Financially ...

A financial planner starting salary is approximately $32,000 but that is just the beginning. The fact is there is so much room for salary growth as you enjoy a satisfying career helping businesses or individuals manager their investments or analyze financial information.

Average Salaries Vary Depending On The Type of Financial Planner You Become

The title of Financial Planner is a broad one that is applied to people with a variety of duties and responsibilities. The question is: What is the average salary of financial planners? Naturally the more duties and responsibilities that come with the job, and the more successful you are at the job, the more you will make as your career blossoms. In general, some financial planners are financial analysts while others are financial advisors. In both situations you are analyzing financial information with the intent of helping a business or individual better manage and invest money.

The Department of Labor reports that in May 2006 the median annual salary of a financial planner or financial advisor was $66,590. That is an excellent salary. But just to show you how wide the salary scale: the lower 10 percent of financial advisors earned under $32,240 while the upper 10 percent earn over $145,600.  You can see the average salary of a financial advisor varies widely as it does for financial analysts. The lower 10 percent of financial analysts earned $40,340 while the upper 10 percent earn over $130,130.

In other words…the sky seems to be the limit if you plan your career carefully and wisely. The U.S. Department of Labor report shows that personal financial advisors earned a median annual wage of $69,050 as of May 2008.

When you have less than a year of experience, the median salary is between approximately $31,000 to $50,000.  But once you get some experience under your belt, the job entry salaries begin got rise quickly.

What is the average salary of financial planners?

Work over 1 year but less than 5 years        $34,000 to $54,000
Work over 5 years but less than 9 years       $48,500 to $78,100
Work over 9 years but less than 19 years     $49,700 to $95,000                
Work over 19 years but less than 20 years   $68,800 to $149,000

As you can see financial planning salaries are very good no matter how many years of experience you can claim.

Demanding Financial Planners And That’s Great News For You!

Financial planners are in demand and that’s great news for you! The complexity of the investment markets is creating new demand for financial planners at both the corporate and individual levels. The Department of Labor reports that there will be 75,000 new financial analyst positions created between 2006 and 2016. There will be 72,000 new jobs for personal financial advisors during the same job period.

The market for financial planners is expected to show strong growth for a number of reasons. 

• Increase complexity of investing decisions
• Growth in number of retiring individuals (baby boomers hit retirement age!)
• Increasing life expectancy making retirement financial planning even more important
• Expansion of types of businesses hiring financial planners
• Increase in types of managed accounts

The expectation is that the demand for financial planners will exceed the average demand for other occupations. Between 2006 and 2016 there is a whopping 37 percent increase expected in number of jobs for financial planners from 397,000 to 544,000.

Getting The Most Salary As a Financial Planner!

How much money does a financial planner make? Financial planners can make a good salary but there are certain factors that have a direct bearing on your wages. 

• Years of experience
• Certification
• Location (city or state)
• Industry

So again the question is: What is the average salary for a financial advisor? As was discussed, the more years of experience you have the more salary you can demand. But certified financial planner salaries are higher than the salaries of people with no certification.

The city or state you work in also affects the median salary of financial advisors. 

New York City financial planners earn a median salary of ……$42,000 to $77,400
Chicago financial planners earn a median salary of ……$30,500 to $57,400
Atlanta financial planners earn a median salary of ……$36,600 to $98,300
Cleveland financial planners earn a salary of ……$27,500 to $50,500

California financial planners earn a median salary of ……$37,800 to $71,700
Texas financial planners earn a median salary of ……$32,500 to $66,200
Florida financial planners earn a median salary of ……$40,700 to $73,100
Ohio financial planners earn a median salary of ……$33,100 to $51,000

Of course, the industry you work in will also impact how much you earn as a financial planner. Here are some median salaries by employer type.

Business                                   $38,800 to $65,300
Self-employed                          $36,300 to $119,000
Private practice firm                  $34,600 to $63,000
Non-profit                                 $34,500 to $48,800
Government                             $59,500 to $78,000

How much does a financial planner make? It all depends…on you!

Planning Your Advancement As A Financial Planner

As a minimum, a bachelor’s degree is needed to become a financial planner, but there are other things you can do to increase your salary.  There are also license requirements depending on the type of financial planner position you hold. For example, the Financial Industry Regulatory Authority licenses financial advisors involved in the securities industry.

But there are certifications that can be earned by financial planners that give credibility and will help you earn more than you would be able to do otherwise.  For example, becoming a Chartered Financial Analyst or a Certified Financial Planner can raise your salary.

Financial planners advance by moving into jobs that have more responsibility.  Most positions require you to have clients. In many companies or while working for yourself, you will earn a commission. If you hold a position where you don’t work with clients, you can advance by assuming more responsibility or being promoted to a managerial position. You should also take note that the highest salary in the range of salaries shown previously is in the self-employed category.

Related Financial Planning Articles:

• Careers in Financial Planning
• Financial Planner Starting Salary