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Financial Advisor Salary - Financial Advisor Salary and Job Outlook - What Do You Do for a Financial Advisor Salary?

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Financial advisors are a type of financial analyst that usually work closely with an individual to plan their economic future, current investments, and outlook for retirement. This work usually requires a bachelor’s degree and keen math skills. Interactive communication and the ability to present ideas well is also required to succeed at this job. The financial advisor salary can be quite high, and is certainly above average in the U.S. Most financial advisors are employed by larger companies, but a high rate (29%) have found self-employment more satisfying.

What Do You Do for a Financial Advisor Salary?

Financial advisors work through several roles and job functions in order to analyze and plan the financial strategies of individuals. The first step is an overall assessment of the client’s financial situation. This includes income, working capital, investments, taxes, and insurance policies. A financial advisor must be able to forecast both short-term and long-term benefits of specific planning actions. While some financial advisors specialize in a particular area of planning, such as retirement, investing, or insurance needs, most work as generalists, taking care of all financial situations and angles.

Part of the job of most financial advisors is finding clients. It is rare that clients are assigned to a financial advisor. This means financial advisors must have skills in marketing or be prepared to hire outside marketers or advertising agencies. If working for a firm, the firm will often help with advertising materials as it will benefit the firm as a whole.

Once a client is found, the consultation and assessment takes place. The client provides as much information as possible along with some personal goals. From this raw data the financial advisor creates a plan that will get the client to his short-term and long-term goals quickly, with the most money, and the most security. After a client has already been established, follow-up meetings occur on an annual basis so the client and advisor can see how the plan is progressing and make any changes that may be necessary.

Most financial advisors are licensed as stock brokers, so they can deal with the purchasing and trading of investments personally. Some clients give financial advisors permission to make trades as they see fit over the course of the year, but some clients require their approval before any changes are made.

Personal financial advisors can work in an outside office or from a home office. For the most part, they work weekdays, 9-5, but with some fluctuation, depending on the needs of specific clients. Some financial clients also may spend evenings giving lectures, seminars, or teaching financial classes that they put together in order to bring in more clients.

Qualifications Required for Earning a Financial Advisor Salary

Most financial advisors have a minimum of a bachelor’s degree. Many find it helpful to receive a Master’s in business or finance. Many different majors are considered acceptable education paths by employers for their financial advisors. The typical degree paths include majors in economics, business, finance, accounting, mathematics, and law. Specific courses covering topics beneficial to financial advisors can also be helpful. Such classes include risk management, tax law, and estate planning.

The only licensing requirements for financial advisors are if they plan on trading stocks, bonds, or buying insurance policies. Each type of service may require a specific license issued by the state.

Financial advisors also benefit from having strong interpersonal communications abilities. This is necessary to win over clients and to be able to communicate the plans with them in a way that can be understood to someone without a degree in economics. Strong sales abilities are also helpful.

Job Outlook and Current State of the Financial Advisor Salary

The growth for financial advisor positions is expected to grow through 2018 and possibly beyond. Experts are predicting a 30% growth rate, much higher than the national average. However, even though growth will soar, competition for available jobs is expected to be fierce.

As of 2008, the median annual salary of a financial advisor was just over $69,000. The mid-50% range of salaries was $46,000 to $119,000. Most financial advisors that work for firms receive performance bonuses on top of their salaries. The range of financial advisor salary stated above does include performance bonuses.

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