Everyone knows salaries for similar jobs can vary tremendously from state to state, but does a financial advisor in Vermont or Oklahoma really make only about half as much as one in New York?
Questions like prompted HowMuch.net to take a look at how much financial advisors make by mean wage in each state, and present it graphically in a color-coded map (see below) showing the highest-salaried states in shades of green and the lower-salaried states in shades of orange.
The findings show a few surprises on the high and low ends, including Maine being a top-five state for financial advisor salaries and Hawaii being among the bottom five.
Using data from the BLS, the report found financial advisors by annual mean wage in the U.S. earn $90,640 ($43.58 per hour), or about $30,000 more per year than the national average of $60,336. Average income for financial advisors in the Northeast exceeds $100,000 except in Vermont, and advisors in the middle of the country tend to earn less than in other regions. The median salary for this type of position ranges from $76,050 to $166,100 across the country.
HowMuch notes that the U.S. Bureau of Labor Statistics predicts that financial advisors will be a hot commodity in the next 10 years. The field is expected to grow faster than others in the same time period, with so many Boomers retiring and in need of financial planning assistance–not to mention more and more Millennials getting their feet wet in financial advice.
5 states where financial advisors earn the most
1. New York: $166,100
2. California: $144,100
3. Connecticut: $137,100
4. District of Columbia: $135,800
5. Maine: $134,400
5 states where financial advisors earn the least
1. Vermont: $76,050
2. Oklahoma: $82,750
3. South Dakota: $83,530
4. Hawaii: $84,390
5. West Virginia: $88,120
Financial advisors in states where they make the least are still making more than the average household in America is bringing in, and ‘household’ frequently means two or more incomes.
These higher-than-average salaries, HowMuch says, can be attributed to the education, skill, and extra hours put in to meet with clients on nights and weekends, but it can also be attributed to the fact that it’s a service that’s in high demand.
The Bureau of Labor Statistics expects the field (classified as “personal financial advisor”) to grow 15% between 2016 and 2026, adding 40,400 jobs. That’s a much faster rate of growth than is expected of all occupations despite the fact that robo-advisor services are becoming more common in this industry. HowMuch notes that the technology that allows robo-advisors to operate typically works alongside real-life advisors rather than co-opting their positions.
• SEE ALSO: Americans Don’t Expect Finances to Improve This Year, Blame Washington
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
