What You Need to Know About Personal Financial Advisor
Personal Financial Advisor Definition Advise clients on financial plans using 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.
What Do Personal Financial Advisors Do On a Daily Basis?
- Interview clients to determine their current income, expenses, insurance coverage, tax status, financial objectives, risk tolerance, or other information needed to develop a financial plan.
- Open accounts for clients and disburse funds from accounts to creditors as agent for clients.
- Implement financial planning recommendations or refer clients to someone who can assist them with plan implementation.
- Meet with clients’ other advisors, such as attorneys, accountants, trust officers, or investment bankers, to fully understand clients’ financial goals and circumstances.
- Manage client portfolios, keeping client plans up-to-date.
- Investigate available investment opportunities to determine compatibility with client financial plans.
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Personal Financial Advisor Required Skills
When polled, Personal Financial Advisors say the following skills are most frequently used in their jobs:
Active Listening: Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
Reading Comprehension: Understanding written sentences and paragraphs in work related documents.
Speaking: Talking to others to convey information effectively.
Judgment and Decision Making: Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Critical Thinking: Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
Service Orientation: Actively looking for ways to help people.
Other Personal Financial Advisor Job Titles
- Securities Counselor
- Strategist
- Trustee of Estate
- Financial Advisor
- Estate Planning Counselor
Are There Job Opportunities for Personal Financial Advisors?
There were about 271,900 jobs for Personal Financial Advisor in 2016 (in the United States). New jobs are being produced at a rate of 14.9% which is above the national average. The Bureau of Labor Statistics predicts 40,400 new jobs for Personal Financial Advisor by 2026. There will be an estimated 25,500 positions for Personal Financial Advisor per year.
The states with the most job growth for Personal Financial Advisor are Colorado, Delaware, and Arizona. Watch out if you plan on working in Maine, New Jersey, or Massachusetts. These states have the worst job growth for this type of profession.
Average Personal Financial Advisors Salary
Personal Financial Advisors make between $41,590 and $208,000 a year.
Personal Financial Advisors who work in New York, District of Columbia, or New Jersey, make the highest salaries.
Below is a list of the median annual salaries for Personal Financial Advisors in different U.S. states.
| State | Annual Mean Salary |
|---|---|
| Alabama | $117,350 |
| Alaska | $93,530 |
| Arizona | $107,160 |
| Arkansas | $96,600 |
| California | $128,730 |
| Colorado | $103,540 |
| Connecticut | $131,280 |
| Delaware | $126,880 |
| District of Columbia | $158,460 |
| Florida | $122,840 |
| Georgia | $121,420 |
| Hawaii | $81,700 |
| Idaho | $104,640 |
| Illinois | $126,640 |
| Indiana | $111,330 |
| Iowa | $105,540 |
| Kansas | $93,720 |
| Kentucky | $85,470 |
| Louisiana | $92,300 |
| Maine | $135,170 |
| Maryland | $110,080 |
| Massachusetts | $128,140 |
| Michigan | $102,010 |
| Minnesota | $99,490 |
| Mississippi | $102,820 |
| Missouri | $85,830 |
| Montana | $102,730 |
| Nebraska | $85,890 |
| Nevada | $108,540 |
| New Hampshire | $105,010 |
| New Jersey | $127,150 |
| New Mexico | $133,500 |
| New York | $164,260 |
| North Carolina | $134,860 |
| North Dakota | $100,360 |
| Ohio | $102,300 |
| Oklahoma | $74,340 |
| Oregon | $117,730 |
| Pennsylvania | $109,250 |
| Rhode Island | $112,430 |
| South Carolina | $89,830 |
| South Dakota | $77,490 |
| Tennessee | $89,960 |
| Texas | $110,820 |
| Utah | $88,440 |
| Vermont | $85,150 |
| Virginia | $121,250 |
| Washington | $109,870 |
| West Virginia | $95,210 |
| Wisconsin | $115,820 |
| Wyoming | $135,340 |
What Tools do Personal Financial Advisors Use?
Although they’re not necessarily needed for all jobs, the following technologies are used by many Personal Financial Advisors:
- Microsoft Excel
- Microsoft Word
- Microsoft Office
- Microsoft PowerPoint
- Web browser software
- Microsoft Access
- Structured query language SQL
- Microsoft Dynamics
- FileMaker Pro
- Salesforce software
- Oracle E-Business Suite Financials
- Oracle Hyperion
- Sage 50 Accounting
- IBM Domino
- Oracle PeopleSoft Financials
- Fund accounting software
- IBM Lotus 1-2-3
- Swift
- Practice management software PMS
- Intuit Quicken
How do I Become a Personal Financial Advisor?
Learn what Personal Financial Advisor education requirements there are.
How many years of work experience do I need?
Personal Financial Advisors Sector
The table below shows the approximate number of Personal Financial Advisors employed by various industries.
Similar Careers
Those thinking about becoming a Personal Financial Advisor might also be interested in the following careers:
Career changers with experience as a Personal Financial Advisor sometimes find work in one of the following fields:
References:
Image Credit: Dave Dugdale via Creative Commons Attribution-Share Alike 2.0 Generic
More about our data sources and methodologies.
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