Personal financial advisors
May 2005 employment and annual earnings distribution, wage and salary workers
Personal Financial Advisors: Advise clients on financial plans utilizing knowledge of tax and investment strategies, securities, insurance, pension plans, and real estate. Duties include assessing clients' assets, liabilities, cash flow, insurance coverage, tax status, and financial objectives to establish investment strategies.
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.
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:
| Other financial investment activities | $74,580 |
| Securities and commodity contracts intermediation and brokerage | 67,730 |
| Management of companies and enterprises | 62,890 |
| Insurance carriers | 58,120 |
| Depository credit intermediation | 56,860 |
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:
| Other financial investment activities | $78,350 |
| Securities and commodity contracts intermediation and brokerage | 63,310 |
| Depository credit intermediation | 57,180 |
| Agencies, brokerages, and other insurance related activities | 56,950 |
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.
(from the Occupational Outlook Handbook: Financial Analysts and Personal Financial Advisors)
See more recent statistics for employed workers below.
May 2005 employment and annual earnings distribution, wage and salary workers
National Occupational Employment and Earnings by Industry (NAICS sector and 3-digit industry group)
| Personal financial advisors | |||||
| Percentile earnings distribution | |||||
| 10th | 25th | 50th | 75th | 90th | |
| Construction employment: 120 mean earnings: $90,190 (EC) (def) (IG) | $23,010 | $56,420 | $99,200 | $109,510 | $116,250 |
| Heavy and Civil Engineering Construction employment: 110 mean earnings: $94,160 | $22,700 | $71,730 | $100,550 | $110,190 | $117,140 |
| Finance and Insurance employment: 97,530 mean earnings: $84,840 (EC) (def) (IG) | $31,620 | $43,030 | $64,920 | $110,890 | >$145K |
| Credit Intermediation and Related Activities employment: 22,320 mean earnings: $69,280 | $30,000 | $39,180 | $57,070 | $83,460 | $132,300 |
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities employment: 63,790 mean earnings: $93,010 | $33,290 | $46,620 | $71,070 | $131,520 | >$145K |
| Insurance Carriers and Related Activities employment: 7,890 mean earnings: $69,110 | $30,200 | $37,370 | $53,680 | $85,840 | $136,480 |
| Funds, Trusts, and Other Financial Vehicles employment: 3,530 mean earnings: $70,880 | $29,580 | $35,340 | $52,050 | $87,170 | >$145K |
| Real Estate and Rental and Leasing employment: 510 mean earnings: $78,540 (EC) (def) (IG) | $35,560 | $43,120 | $66,800 | $112,370 | $139,800 |
| Real Estate employment: 490 mean earnings: $78,820 | $35,800 | $42,950 | $65,600 | $114,420 | $140,520 |
| Professional, Scientific, and Technical Services employment: 5,510 mean earnings: $70,360 (EC) (def) (IG) | $28,090 | $34,930 | $53,880 | $82,520 | >$145K |
| Professional, Scientific, and Technical Services employment: 5,510 mean earnings: $70,360 | $28,090 | $34,930 | $53,880 | $82,520 | >$145K |
| Management of Companies and Enterprises employment: 1,850 mean earnings: $71,700 (EC) (def) (IG) | $33,590 | $45,930 | $62,220 | $84,700 | $126,220 |
| Management of Companies and Enterprises employment: 1,850 mean earnings: $71,700 | $33,590 | $45,930 | $62,220 | $84,700 | $126,220 |
| Administrative and Support and Waste Management and Remediation Services employment: 360 mean earnings: $72,310 (EC) (def) (IG) | $31,530 | $40,090 | $57,070 | $88,230 | >$145K |
| Administrative and Support Services employment: n.a. mean earnings: $73,890 | $30,660 | $38,930 | $55,130 | $93,120 | >$145K |
| Educational Services employment: 370 mean earnings: $57,380 (EC) (def) (IG) | $24,630 | $29,360 | $39,190 | $64,780 | $124,530 |
| Educational Services employment: 370 mean earnings: $57,380 | $24,630 | $29,360 | $39,190 | $64,780 | $124,530 |
| Health Care and Social Assistance employment: 830 mean earnings: $38,540 (EC) (def) (IG) | $21,800 | $25,310 | $30,870 | $42,450 | $67,790 |
| Hospitals employment: 640 mean earnings: $38,420 | $21,250 | $24,710 | $29,270 | $41,280 | $69,720 |
| Social Assistance employment: 180 mean earnings: $37,290 | $24,450 | $28,140 | $35,590 | $43,400 | $52,710 |
| Other Services (except Public Administration) employment: 370 mean earnings: $56,100 (EC) (def) (IG) | $27,590 | $33,810 | $51,470 | $68,880 | $94,700 |
| Personal and Laundry Services employment: n.a. mean earnings: $43,010 | $29,280 | $30,670 | $32,840 | $35,000 | $112,550 |
| Religious, Grantmaking, Civic, Professional, and Similar Organizations employment: 320 mean earnings: $58,110 | $24,530 | $37,060 | $55,010 | $70,070 | $94,200 |
| Federal, State, and Local Government (OES Designation) employment: 840 mean earnings: $53,200 (def) (IG) | $31,280 | $35,590 | $44,780 | $60,770 | $76,700 |
| Federal, State, and Local Government (OES Designation) employment: 840 mean earnings: $53,200 | $31,280 | $35,590 | $44,780 | $60,770 | $76,700 |
source: Occupational Employment Statistics Program; about these estimates
The (EC) links lead to data from the Economic Census from the Census Bureau.
The (def) links lead to 2002 NAICS industry definitions from the Census Bureau.
The (IG) links lead to Industry at a Glance industry profiles from the Bureau of Labor Statistics.