Financial Advisor Job Description, Skills, and Salary

Financial Advisor Job Description, Skills, and SalaryFinancial Advisor Job Description, Skills, and SalaryFinancial advisorshelp clients create viable plans for managing their finances relative to individual and family situations. During the early stages of their careers, financial advisors spend considerable time and energy filling out their client rosters by prospecting for new customers. They meet with prospects and try to convince them to sign on as clients. They engage established clients and interview them to assess their risk tolerance and financial goals. Financial advisors recommend a mix of investments including stocks, bonds, mutual funds, and real estate to help clients reach their goals for college savings, retirement, and wealth building. They recommend an allocation of assets consistent with the risk tolerance of clients and their life stage. Where Financial Advisors Work Financial advisors often work for large financial services businesses, but they may be station ed in small local offices for these firms. Many financial advisors operate their own businesses and work independently or with a few partners. Education, Training, and Certifications Financial advisors need to earn a bachelors degree to qualify for positions. Advisors benefit from coursework in economics, mathematics, finance, investments, accounting, and taxation. Most financial services firms have training programs to equip graduates and career changers with the fundamental knowledge and skills. Financial advisors can enhance their credibility with clients by earning a financial planning certification like the Certified Financial Planner(CFP) designation. While elend required, a masters degree in finance, business administration, or other similar fields often will help with advancement. Financial Advisor Salaries According to the Bureau of Labor Statistics(BLS), financial advisors earned an average of $90,640 annually as of 2017. The top 10 percent of financial advisors ea rned at least $208,000while the bottom 10 percent earned less than $40,800. Financial advisors working for investment firms earned higher than average salaries and advisors working for community banks and credit unions tended to earn lower than average salaries. Advisors who are employed by financial services firms often receive bonuses, and that compensation is not included in these figures. Compensation is tied directly to productivity in terms of fees for products sold, assets managed and/or the number of financial plans generated. Since pay and job security are heavily based on performance, there is a high washout rate for new advisors who are unable to meet the challenge of building a viable roster of clients. Skills Necessary In addition to understanding business and finance, analytical skills and people skills are very important for success as a financial advisor. Advisors need to be able to read data, recognize trends, and anticipate where markets are going to be of the most value to their clients. Additionally, advisors need to be likable and trustworthy. Being successful requires building a client base, and doing that involves convincing people that you can be a trusted source for information and direction regarding their investments. No matter how good a financial advisor might be with the numbers, it will be difficult to build a client base without strong people skills. Employment Outlook According to the Bureau of Labor Statistics, employmentof personal financial advisors is projected to grow 15 percent during the decade ending in2026, much faster than the average for all occupations. Factors impacting growth include an aging bevlkerung of retirees in need of help with financial planning and the trend towardself-managedretirement resources in lieu of company-controlled pensions. The expanded use of automated planning resources may limit the growth of opportunities for financial advisors.