Financial Planner as the title suggests a financial planner needs to prepare a financial budget of the entity you are working for. People with an accounting background prefer to opt for this position because of the reputation and salary they earn. Working as a financial planner for an organization or individual is always beneficial because of the perks associated with it. Here, let’s know about Financial Planner Salary.
Everyone wants to achieve heights, especially a career-oriented person who will always prefer to choose the best career path for them. A career in finance is always a good option, so becoming a financial planner is also a good idea. In this article, you will find the salary of a financial planner and other perks associated with the job.
Financial Planner Salary:
As per the reports, there will be around 40,400 new financial planners in the decade of 2018 to 2028. The candidates working as financial planners receive $62,556 per annum. The pay scale of a financial planner differs depending upon various factors such as location, experience, qualification, company, and much more. Below will be given salary based on these factors one-by-one.
Salary of the basis of experience:
No matter what, an experienced person will get paid more than a fresher. If you are highly experienced, you must be knowing on what areas do one need to focus on to get better results. Employers always prefer to hire candidates who have more knowledge and experience, also they do pay them higher than the inexperienced candidate.
|Amount of Experience||Average Salary|
|Less than one year of experience, <1 year||$47,000 per annum|
|Less than five years of experience, 1-4 years||$57,000 per annum|
|Between five to nine years of experience, 5-9 years||$70,000 per annum|
|Highly Experienced, 10-19 years||$83,000 per annum|
From the above table, you must have got an estimated idea about the pay scale as a financial planner.
Salary based on a qualification:
If you have planned to apply for the job position, then you must be having certain qualifications. Financial Planning is something that requires perfect knowledge of accounting, business, finance, or related field. If you have only a bachelor’s degree then you will be paid lesser than a person with a master’s degree in the appropriate field.
- A person holding only a bachelor’s degree will be paid $73,000 per annum on average.
- On the other hand, a person with a master’s degree will be paid $101,000 per annum on average.
A candidate with higher education will certainly get more salary. Also, you need to be from the perfect background to get good a job as a financial planner.
Salary according to certification:
Being highly qualified and working in the best state might require some knowledge, experience, and certification too. Certainly, if you have proper certification then it might lead to earning more salary than a person with no proper certificate. Their salary differs vastly, so you can refer to the following table for pay according to certification:
|Certified Financial Planner||$66,568 per annum|
|Financial Advisor||$58,078 per annum|
|Financial Planning and Analysis Manager||$99,416 per annum|
From the above-given chart, you must have learned that a certificate is important for salary growth.
Salary as per different States:
Your salary as a financial planner will fluctuate depending upon the state you work in. The salary ranges from state to state, some pay less but some states pay high. While working in a state you should take into consideration the cost of living in that state too. Below is given the chart which highlights the salary according to different in states in the US.
|States paying higher salaries to a financial planner||Average Salary|
|New York||$164,260 per annum|
|District of Columbia||$158,460 per annum|
|Wyoming||$135,340 per annum|
|Maine||$135,170 per annum|
|North Carolina||$134,860 per year|
From the above-given chart, you must have analyzed that New York is the highest paying state for a financial planner.
Salary by Industry:
The different industry has different requirement of a financial planner. Some industries want a financial planner for a specific department or an individual or the entire company. So, as per the requirement of the industry, they are paid accordingly.
|Different industry||Average Salary|
|Real Estate||$161,860 per annum|
|Securities, Commodity Contracts, and Other Financial Investments and Related Activities||$129, 950 per annum|
|Other Investment Pools and Funds||$128, 580 per annum|
|Grantmaking and Giving Services||$123, 140 per annum|
|Management of Companies and Enterprises||$117, 210 per annum|
Ultimately, if you are working in the best state which, provides the highest salary, and working in real estate. Along with that, you are highly qualified and have good experience, you will surely earn a handsome amount as a financial planner.
Where to apply for the post of Financial Planner?
As per reports, the need for financial planners will grow with time. Certainly, the number of financial planners should meet the need of financial planners. Otherwise, situations like unemployment or over-employment will arise. Every year, there is a need for around 25,500 financial planners in the US. As of now, the top states that hire many financial planners are New York, Boston, and Los Angeles. These states employ many financial planners and advisors every year.
- New York: 27,570 financial planners
- Los Angeles: 10,520 financial planners
- Boston: 8,740 financial planners
These states employ more financial planners but there are places where the career growth rate is high. Various states tend to hire more financial planners and there is a change in employment status as well.
- Colorado: 35. 8% increase from the year 2016 -2026
- Delaware: 31. 8% increase from the year 2016 -2026
- Arizona: 29. 4% increase from the year 2016 – 2026
- North Dakota: 26. 7% increase from the year 2016 – 2026
- Iowa: 25. 8% increase from the year 2016 – 2026
Skills required to become a financial planner:
If you are planning to become a financial planner then, you certainly need to possess certain skills that will be beneficial for you. Along with qualifications, skills are also needed for helping the clients effectively. The list of such skills is given below for your assistance:
- Interpersonal Communication Skills: Being a financial planner you need to converse with clients to make an effective budget. To understand their perspective better, and to make them understand your plans you should have better communication skills. So, for effective communication and sharing the details you must possess outstanding interpersonal communication skills.
- Analytical Thinking: For making effective reports and budgets, you need to analyze the market conditions properly. After considering and analyzing all the situations you can serve your clients or organization effectively. You must be a critical thinker to support and help the clients in the best possible manner.
- Risk Assessment: As a financial planner you must know all circumstances and must be aware of risk factors too. To serve and provide the organization or individual with the best financial advice or plan, you need to analyze the risk factor. Before investing in any plan, you must analyze and interpret all the risks associated with it to provide security to your client.
- Wealth Management: Obviously, you have to deal with finance and manage the wealth of your client, so you should know how to tackle or manage wealth. You should know where to invest and how much, so keep that perspective in mind. As a financial planner, you need to keep an account of your client or organization you are working for.
- Problem-solving Skills: Being a financial planner, you need to first make proper plans for investing. If in case, the market fluctuates and a certain amount gets blocked then you need to find the way out.
- Time Management Skills: As a financial planner, you must know how to manage your time. You need to make sure that your client is investing the money at right time, for that you need to prepare the budget beforehand. As a financial planner, you need to analyze the market at right time to help your client or organization.
Frequently asked questions:
Ques. 1: What is the starting pay for financial planners?
Ans. 1: As an entry-level financial planner you can expect to earn around $69,676 per year. But, as you gain more experience and knowledge, your salary will increase with time.
Ques. 2: Is a financial planner a good career for accounting students?
Ans. 2: According to reports from US News Career Rankings, a financial planner is one of the topmost careers. As a financial planner, you earn a good salary with a reputation in the market, this job is considered to be one of the best corporate jobs.
Ques. 3: Is being a financial planner hard?
Ans. 3: If you want to become a financial planner, then you need to keep in mind that the career path is not too easy but it is neither too difficult. You must have proper qualifications along with a proper certificate to work. So, it is not too difficult to become a financial planner, some hard work can give you a set career.