Financial Planner Salary
In May 2010, the Bureau of Labor Statistics reported a $91,220 mean annual wage for financial planners. The lowest ten percent of earners made $32,660 annually, on average. The middle 50 percent had an average annual wage of $64,750 and the highest ten percent earned an average of more than $166,400 annually. The top paying industry was that involved in financial investment activities. Accounting, bookkeeping, payroll and tax preparation, commodities and securities contracts brokerage and intermediaries, real estate lessors, and management, technical, and scientific consulting services industries were also high payers.
The industry engaged in financial investment activities employed the most financial planners. Other industries with high levels of employment for these individuals were commodity and securities contracts brokerage and intermediation, insurance agencies and brokerages, nondepository credit intermediaries, and organizations engaged in the management of companies and enterprises. New York was the highest paying state for financial planners, with an annual mean wage of $136,310. Connecticut, Massachusetts, New Jersey, and Pennsylvania were other top paying states, each offering an annual mean wage of over $98,500. The lowest paying states paid an annual mean wage of between $46,840 and $62,770 and included Arizona, Alaska, New Mexico, Oregon, Idaho, and Louisiana.
Financial Planner Job Description
Financial planners, also called personal financial advisors, assess financial needs of clients and provide assistance with investments, insurance, and tax laws. From their home office or a commercial location, they help clients work toward both short and long-term financial goals like education, preparing for retirement, and establishing a steady flow of investment income. Some also sell insurance, provide tax advice, or may specialize in an area like risk management or estate planning. They must have knowledge of securities, pension plans, real estate, insurance, and investment and taxation strategies.
Financial Planner Job Outlook
Between the years 2008 and 2018, much faster than average employment growth is expected for financial planners. While the employment change should be 30 percent, the field will be characterized by keen competition, especially for those new to this career. As of May 2010, the states with the highest employment level within the financial planning occupation were New York, California, Texas, Florida, and Illinois, according to the Bureau of Labor Statistics.
Financial Planner Education & Training
In a recent survey conducted by the career site O*Net, 16 percent of respondents reported having a high school diploma or equivalent and 18 percent had an associate’s degree. A bachelor’s degree was held by 45 percent of respondents and is the minimum level of education the Bureau of Labor Statistics recommends for those interested in this career. Many financial planners go on to earn a master’s degree in business administration or finance or obtain a professional designation.
Employers do not usually require that financial planners have a degree in a specific field but areas like finance, economics, accounting, mathematics, law, or business are most compatible. Some colleges and universities have begun offering financial planning educational programs. Investment, tax, risk management, and estate planning courses prove beneficial in this career.
The Certified Financial Planner Board of Standards issues the Certified Financial Planner (CFP) credential. To obtain this certification, an individual must complete educational requirements that include a bachelor’s degree, have at least three years of related work experience, pass an examination, and promise adherence to a code of ethics. Certifications like this are not always required but are often recommended by employers.
Financial planners who directly purchase bonds, stocks, or insurance or provide investment advice must be licensed based upon the areas in which they deal. The North American Securities Administrator Association provides information regarding state licensing and other requirements for registered investment advisors. The firms that manage client investments must be registered with either a state regulator or the Securities and Exchange Commission, depending on their size.
Related Occupations
Actuary, financial analyst, and accountant positions require expertise in investments or finance. Actuaries assess the risk of an event like property loss, disability, or death occurring and help create individual and business insurance policies that minimize the cost of such risk. Financial analysts provide individuals and businesses with guidance regarding investment decisions by assessing commodity, stock, bond, and other investment performance. Financial information is analyzed and communicated by accountants to keep firms, clients, and governments running smoothly. Careers like insurance sales agent and real estate sales agent involve the sale of financial products. Insurance sales agents sell one or multiple types of insurance like long-term care, disability, health, life, and property and casualty. Real estate sales agents help individuals and companies purchase and sell real estate.
