What Does it Take to Be a Personal Financial Advisor?
Job Description & Duties 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.
Daily Life Of a Personal Financial Advisor
- Implement financial planning recommendations or refer clients to someone who can assist them with plan implementation.
- Recommend to clients strategies in cash management, insurance coverage, investment planning, or other areas to help them achieve their financial goals.
- Recommend financial products, such as stocks, bonds, mutual funds, or insurance.
- Review clients’ accounts and plans regularly to determine whether life changes, economic changes, environmental concerns, or financial performance indicate a need for plan reassessment.
- Manage client portfolios, keeping client plans up-to-date.
- Monitor financial market trends to ensure that client plans are responsive.
What Every Personal Financial Advisor Should Know
Personal Financial Advisors state the following job skills are important in their day-to-day work.
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
- Account Executive
- Chartered Financial Analyst (CFA)
- Personal Banker
- Debt Counselor
- Financial Counselor
Personal Financial Advisor Job Outlook
In 2016, there was an estimated number of 271,900 jobs in the United States for Personal Financial Advisor. 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.
What is the Average Salary of a Personal Financial Advisor
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.
How much do Personal Financial Advisors make in different U.S. states?
|State||Annual Mean Salary|
|District of Columbia||$158,460|
What Tools & Technology do Personal Financial Advisors Use?
Below is a list of the types of tools and technologies that Personal Financial Advisors may use on a daily basis:
- 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
- Practice management software PMS
- Intuit Quicken
How do I Become a Personal Financial Advisor?
Are there Personal Financial Advisors education requirements?
How many years of work experience do I need?
Where Personal Financial Advisors Are Employed
The table below shows some of the most common industries where those employed in this career field work.
You May Also Be Interested In…
Those thinking about becoming a Personal Financial Advisor might also be interested in the following careers:
Those who work as a Personal Financial Advisor sometimes switch careers to one of these choices:
Image Credit: Dave Dugdale via Creative Commons Attribution-Share Alike 2.0 Generic
More about our data sources and methodologies.
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