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Financial Advisors Job Overview

Financial advisors provide analysis and guidance to businesses and individuals when making investment decisions. They gather financial information, analyze it and make recommendations. They use their knowledge of investments, tax laws and insurance to recommend financial options to individuals. They help them identify and meet short and long term goals. Financial advisors begin their work by setting up a consultation with a client. They assess the economic performance of companies and industries for firms and institutions with money to invest. Many of them spend a lot of time making sales calls and marketing their services. To become a successful financial advisor, the most important thing is finding clients and building a customer base.

Financial Advisors Schools and Degrees

Financial advisors should have a bachelor’s degree in finance, business administration, accounting, statistics or economics. Knowledge of accounting policies and procedures, corporate budgeting and financial analysis methods is also helpful. Courses in investments, taxes, estate planning and risk management can be included in the degree course. Financial advisors can also obtain the Chartered Financial Consultant designation, which is issued by American College in Bryn Mawr, Pa. and requires an eight-course study program with continuing education requirements.

Job Requirements

Financial advisors are required to possess Series 7 and Series 63 or 66 licenses, which give them the right to work as a registered representative of a security firm. They are then eligible to give financial advice. The main organization providing licenses to the securities industry is the Financial Industry Regulatory Authority. In order to sell insurance, financial advisors are required to have additional licenses issued by State licensing boards. They can also gain Certified Financial Planner credential, which is offered by the Certified Financial Planner Board of Standards. Three years of relevant experience is required to earn this certificate.

Financial advisors must place a strong emphasis on customer service. Their essential qualifications are strong mathematical, analytical and problem-solving skills. Good communication skills, self-confidence, maturity and the ability to work independently are also necessary. They should be very comfortable with computers.

Nature of Work

Financial advisors usually work in offices or their own homes. They may work long hours, travel frequently to visit companies or potential investors and face the pressure of deadlines. Much of their research must be done after office hours because their days are filled with telephone calls and meetings. Financial advisors usually work standard business hours, but they also schedule meetings with clients in the evenings or on weekends.

Financial Advisors Jobs and Outlook

According to research, financial advisors held about 397,000 jobs in the US. Employment is the highest in the following industries:

• Agencies, Brokerages, and Other Insurance Related Activities
• Depository Credit Intermediation
• Other Financial Investment Activities
• Other Investment Pools and Funds
• Securities and Commodity Contracts Intermediation and Brokerage

As the level of investment increases, overall employment of financial advisors is expected to increase by 37 percent during the next ten years.

The mean hourly wage for financial advisors in the US is about $42.89, while the mean annual salary is around $89,220.

Job Numbers and Growth

About 176,000 financial advisors are employed nationally. Workers can expect a very low level of unemployment, if history can be used as a guide. In 2008, 2% of employees could not find jobs.

Area Job Conditions

Popular locations for financial advisors include Bridgeport (Connecticut), West Palm Beach (Florida), and New York (New York). Fewer are found in Stockton (California), El Paso (Texas), and Baton Rouge (Louisiana).

Workers looking for high salaries should look at Worcester (Massachusetts), San Francisco (California), and New York (New York), and should avoid Tallahassee (Florida), Gulfport (Mississippi), and Pascagoula (Mississippi).

Training and Education

Employees often obtain a bachelor's degree before starting. The percentage of financial advisors with college degrees is 81%. Workers with some college (less than a bachelor's degree) represent about 15% of the total. Some employees, about 4%, had a high-school education. Recommended schools are shown in the column to the right; request information from them to help you decide which if any could help you with this career.

Part-Time Work and Self-Employment

Part-time financial advisors are 8% of all surveyed. Some workers, about 31%, work for themselves.

Financial Advisors by Metropolitan Area (city and its surroundings)

In the table below, a Job Density near 0% means the area has an average number of people in this occupation, for its population. A higher or lower Job Density (e.g., +22% or -45%) tells you there are that many more or fewer workers of that type there than in the average US metro area. So, the higher the number, the more common the occupation.

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

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New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

Wisconsin

Wyoming