Personal financial advisors

Median annual earnings of financial analysts were $61,910 in May 2004. The middle 50 percent earned between $47,410 and $82,730. The lowest 10 percent earned less than $37,580, and the highest 10 percent earned more than $113,490. Median annual earnings in the industries employing the largest numbers of financial analysts in 2004 were as follows:

Median annual earnings of personal financial advisors were $62,700 in May 2004. The middle 50 percent earned between $41,860 and $108,280. Median annual earnings in the industries employing the largest number of personal financial advisors in 2004 were as follows:

Many financial analysts receive a bonus in addition to their salary, and the bonus can add substantially to their earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment. Personal financial advisors who work for financial services firms are generally paid a salary plus bonus. Advisors who work for financial investment or planning firms or who are self-employed either charge hourly fees for their services or charge one set fee for a comprehensive plan, based on its complexity. Advisors who manage a client’s assets may charge a percentage of those assets. Advisors generally receive commissions for financial products they sell, in addition to charging a fee.

Financial analysts and personal financial advisors held 355,000 jobs in 2004, of which financial analysts held 197,000. Many financial analysts work at the headquarters of large financial companies, several of which are based in New York City. More than 4 out of 10 financial analysts work for finance and insurance industries, including securities and commodity brokers, banks and credit institutions, and insurance carriers. Others worked throughout private industry and government.

Personal financial advisors held 158,000 jobs in 2004. Much like financial analysts, more than half work for finance and insurance industries, including securities and commodity brokers, banks, insurance carriers, and financial investment firms. However, 4 out of 10 personal financial advisors are self-employed, operating small investment advisory firms, usually in urban areas.

(from the Occupational Outlook Handbook: Financial Analysts and Personal Financial Advisors)

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