### Bureau of Labor Statistics U.S. Bureau of Labor Statistics

Personal Financial Advisors Summary
                        
            
                                                        
                                                                
                        
            
            
            
                            
                                                
                                                
                                                
                                                
            						
							
				                                                
                                            




            			personal financial advisors imagePersonal financial advisors help people with investments, taxes, and insurance decisions.							
						Quick Facts:     Personal Financial Advisors2023     Median Pay
            						$99,580     per year
										$47.88     per hourTypical Entry-Level Education
                                    Bachelor's degreeWork Experience in a Related Occupation
                                    NoneOn-the-job Training
                                    Long-term on-the-job trainingNumber of Jobs, 2022
                                    327,600Job Outlook, 2022-32
                                    13% (Much faster than average)Employment Change, 2022-32
                                    42,000What Personal Financial Advisors Do
                                                
                        
                        
Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.
            
                        Work Environment
                        
Most personal financial advisors work in the finance and insurance industry or are self-employed. They typically work full time, and some work more than 40 hours per week. They also may meet with clients in the evenings or on weekends.
            
                                                How to Become a Personal Financial Advisor
                                                
                        
Personal financial advisors typically need a bachelor’s degree to enter the occupation. A master’s degree and certification may improve chances for advancement.
            
                        Pay
                        												                            																				    														The median annual wage for personal financial advisors was $99,580 in May 2023.									                                					
						
            
                        Job Outlook
                        						
												Employment							of personal financial advisors is projected to grow							 13 percent from 2022 to 2032, much faster than the average for all occupations.
						About 25,600 openings for personal financial advisors are projected each year, on average, over the decade.
            			
            			 Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
						State & Area Data
                       Explore resources for employment and wages by state and area for personal financial advisors.
            
            
						
                        Similar Occupations
                        
                                                    Compare the job duties, education, job growth, and pay of personal financial advisors with similar occupations.
            
            
                        More Information, Including Links to O*NET
                        
                                               
                        Learn more about personal financial advisors by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
 What Personal Financial Advisors Do 
            

			Personal financial advisorsPersonal financial advisors meet with clients to discuss their financial goals.			
Personal financial advisors provide advice on investments, insurance, mortgages, estate planning, taxes, and retirement to help individuals manage their finances.
Duties
Personal financial advisors typically do the following:
Meet with clients to discuss their financial goals
Explain to potential clients the types of financial services they provide
Educate clients and answer questions about investment options and potential risks
Recommend investments to clients or select investments on their behalf
Help clients plan for specific circumstances, such as education or retirement
Monitor clients’ accounts and determine if changes are needed to improve financial performance or to accommodate life changes, such as getting married or having children
Research investment opportunitiesPersonal financial advisors assess the financial needs of individuals and help them with decisions on investments (such as stocks and bonds), tax laws, and insurance. Advisors help clients plan for short- and long-term goals, such as budgeting for education expenses and saving for retirement through investments. They invest clients’ money based on the clients’ decisions. Many advisors also provide tax advice or sell insurance.
Although most planners offer advice on a wide range of topics, some specialize in areas such as retirement or risk management (evaluating the investor's willingness to take chances and adjusting investments accordingly).
Many personal financial advisors spend a lot of time marketing their services, and they meet potential clients by giving seminars or participating in business and social networking.
After financial advisors have invested funds for a client, they and the client receive regular investment reports. Advisors monitor the client’s investments and usually meet with each client at least once a year to update the client on potential investments and to adjust the financial plan based on the client’s circumstances or because investment options may have changed.
Many personal financial advisors are licensed to directly buy and sell financial products, such as stocks, bonds, annuities, and insurance. Depending on the agreement they have with their clients, personal financial advisors may have the client’s permission to make decisions about buying and selling stocks and bonds.
 Work Environment
			Personal financial advisorsMany personal financial advisors travel to attend conferences or teach finance classes in the evening to bring in more clients.			

	    
				
	
	
	
	
	
	
	    					 Personal financial advisors held about 327,600 jobs in 2022. The largest employers of personal financial advisors were as follows:
        Securities, commodity contracts, and other financial investments and related activities
                63%Credit intermediation and related activities
                17Insurance carriers and related activities
                3Professional, scientific, and technical services
                2Personal financial advisors typically work in offices. Some also travel to attend conferences, teach finance seminars in the evening, and attend networking events to bring in more clients.
Work Schedules
Most personal financial advisors work full time and some work more than 40 hours per week. They also may go to meetings on evenings and weekends to meet with prospective or existing clients.
 How to Become a Personal Financial Advisor

			Personal financial advisorsPersonal financial advisors must establish trust with clients and respond to their questions and concerns.			
Personal financial advisors typically need a bachelor’s degree to enter the occupation. A master’s degree and certification may improve chances for advancement.
Education
Personal financial advisors typically need a bachelor’s degree, although employers usually do not require a specific course of study. However, common fields of degree include business, social science, or mathematics. Courses in investments, taxes, estate planning, and risk management may be helpful.
Training
After they are hired, personal financial advisors typically need on-the-job training to attain competency. During this time, new advisors work under the supervision of senior advisors and learn how to build a client network, develop investment portfolios, and perform other duties. This training usually lasts for more than a year.
Licenses, Certifications, and Registrations
Personal financial advisors who directly buy or sell stocks, bonds, or insurance policies, or who provide specific investment advice, may need a combination of licenses that varies with the products they sell. In addition to being required to have those licenses, advisors in small firms that manage clients’ investments must be registered with state regulators, and those in large firms must be registered with the U.S. Securities and Exchange Commission (SEC). Personal financial advisors who choose to sell insurance need licenses issued by state boards. Information on state licensing board requirements for registered investment advisors is available from the North American Securities Administrators Association (NASAA).
Certifications may enhance a personal financial advisor’s reputation and help bring in new clients. The Certified Financial Planner Board of Standards offers the Certified Financial Planner (CFP) designation. For this certification, advisors must have a bachelor’s degree, complete coursework on financial planning through a CFP Board Registered Program, have relevant work experience, pass an exam, and agree to adhere to a code of ethics.
Advancement
A master’s degree in a field such as finance or business administration may improve a personal financial advisor’s chances of becoming a financial manager and of attracting new clients.
Important Qualities
***Analytical skills.*** In determining an investment portfolio for a client, personal financial advisors must be able to assess a range of information, including economic trends, regulatory changes, and the client’s comfort with risky decisions.
***Interpersonal skills.*** A major part of a personal financial advisor’s job is making clients feel comfortable. Advisors must establish trust with clients and respond well to their questions and concerns.
***Math skills.*** Personal financial advisors must be adept at working with numbers to determine the amount invested, how that amount has grown or decreased over time, and how a portfolio is distributed among different investments.
***Sales skills.*** To expand their base of clients, personal financial advisors must be convincing and persistent in selling their services.
***Speaking skills.*** Personal financial advisors interact with clients every day. They must explain complex financial concepts in a way that clients understand.
 Pay

			



	
 
                                                     
            
    
                Personal Financial AdvisorsMedian annual wages, May 2023Personal financial advisors$99,580  Financial specialists$80,090  Total, all occupations$48,060Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics
 

	
	



		
	
	
	
The median annual wage for personal financial advisors was $99,580 in May 2023. 


The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $48,730, and the highest 10 percent earned more than $239,200.





		
	    					 In May 2023, the median annual wages for personal financial advisors in the top industries in which they worked were as follows:	
        Securities, commodity contracts, and other financial investments and related activities
                $104,120Credit intermediation and related activities
                81,140Insurance carriers and related activities
                79,770Professional, scientific, and technical services
                74,330Personal financial advisors who work for financial services firms are often paid a salary plus bonuses. Commissions, incentive pay, and production bonuses are included in the wage data here; nonproduction bonuses are not included.
Advisors who work for financial investment firms or financial planning firms or who are self-employed earn money for their services in one of two ways. They either charge a flat fee or earn commissions for the financial products that they sell.
Most personal financial advisors work full time, and some work more than 40 hours per week. They also may go to meetings on evenings and weekends to meet with existing clients or to try to bring in new ones.
 Job Outlook

   
        
    
          
        
    
                Personal Financial AdvisorsPercent change in employment, projected 2022-32Personal financial advisors13%  Financial specialists5%  Total, all occupations3%Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Employment Projections program
            
            
			 
	
	
	

			Employment				of personal financial advisors is projected to grow				 13 percent from 2022 to 2032, much faster than the average for all occupations.
			
			About 25,600 openings for personal financial advisors are projected each year, on average, over the decade.
			
			 Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
			Employment
	
			
The primary driver of employment growth will be the aging population. As large numbers of baby boomers continue to retire, they are likely to seek planning advice from personal financial advisors. Also, longer lifespans will lead to longer retirement periods, further increasing demand for financial planning services.
In addition, the replacement of traditional pension plans with individual retirement accounts is expected to continue. Many people used to receive defined pension payments in retirement, but most companies no longer offer these plans. Therefore, individuals must save and invest for their own retirement, increasing the demand for personal financial advisors.
The availability of “robo-advisors,” computer programs that provide automated investment advice based on user inputs, may partially temper demand for personal financial advisors. However, the impact of this technology should be limited as consumers continue turning to human advisors for more complex and specialized investment advice over the projections decade.
			

                        Employment projections data for     personal financial advisors, 2022-32
                Occupational Title
                        SOC Code
                        Employment, 2022
                        Projected Employment, 2032
                        Change, 2022-32
                        Employment by IndustryPercent
                        NumericSOURCE: U.S. Bureau of Labor Statistics, Employment Projections program**Personal financial advisors**
			13-2052
			327,600
			369,600
			13
			42,000
			Get data
 State & Area Data **Occupational Employment and Wage Statistics (OEWS)** The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OES data maps for employment and wages by state and area. Personal financial advisors **Projections Central** Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved. **CareerOneStop** CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.
 Similar Occupations This table shows a list of occupations with job duties that are similar to those of personal financial advisors. Occupation
                Job Duties
                ENTRY-LEVEL EDUCATION
                2023     MEDIAN PAY**Budget Analysts**
            Budget analysts help public and private organizations plan their finances.
            Bachelor's degree
            $84,940**Financial Analysts**
            Financial analysts guide businesses and individuals in decisions about expending money to attain profit.
            Bachelor's degree
            $99,890**Financial Managers**
            Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
            Bachelor's degree
            $156,100**Insurance Sales Agents**
            Insurance sales agents contact potential customers and sell one or more types of insurance.
            High school diploma or equivalent
            $59,080**Insurance Underwriters**
            Insurance underwriters evaluate insurance applications and decide whether to approve them.
            Bachelor's degree
            $77,860**Real Estate Brokers and Sales Agents**
            Real estate brokers and sales agents help clients buy, sell, and rent properties.
            High school diploma or equivalent
            $56,620**Securities, Commodities, and Financial Services Sales Agents**
            Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.
            Bachelor's degree
            $76,900
 Contacts for More Information
								
For more information about personal financial advisors, visit
Financial Industry Regulatory Authority (FINRA)
North American Securities Administrators Association
U.S. Securities and Exchange Commission (SEC)
Certified Financial Planner Board of Standards
Global Academy of Finance and Management

                                                
                                                        
                                                                                                    O*NET
                                        Personal Financial Advisors
 Suggested citation: Bureau of Labor Statistics, U.S.  Department of Labor, Occupational Outlook Handbook, Personal Financial Advisors, 
        	 at https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm (visited *May 21, 2024*).
 **Last Modified Date:**
                        Wednesday, April 17, 2024


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