Last updated: February 2026 | Data sources: Bureau of Labor Statistics (BLS), CFP Board, FINRA
Financial Advisor Salary Overview: What to Expect in 2026
How much do financial advisors make? The answer varies dramatically depending on your experience, location, credentials, firm type, and compensation model. According to the Bureau of Labor Statistics, the median annual salary for personal financial advisors is $102,140. However, that number only tells part of the story.
Financial advisor compensation is uniquely variable compared to most professions. Entry-level advisors may earn $40,000-$60,000 in their first year, while top-performing advisors with large books of business regularly earn $500,000 to over $1 million annually. Unlike salaried positions, your income as a financial advisor is largely determined by the size of your client base, the assets you manage, and how effectively you grow your practice.
The financial advisory industry continues to grow in 2026, driven by an aging population needing retirement planning, increasing market complexity, and greater demand for personalized financial guidance. The BLS projects 10% job growth for financial advisors through 2034, much faster than the average for all occupations.
Key Salary Statistics at a Glance
| Metric | Amount |
|---|---|
| BLS Median Salary | $102,140 |
| Entry-Level Range | $40,000 - $60,000 |
| Mid-Career Range | $80,000 - $150,000 |
| Senior Advisor Range | $150,000 - $300,000+ |
| Top Performers | $500,000 - $1,000,000+ |
| Bottom 10% | Below $40,000 |
| Top 10% | Above $239,200 |
| Job Growth (2024-2034) | 10% (Much faster than average) |
Start FREE SIE Exam Prep -->Free exam prep with practice questions & AI tutor
Top 10 Highest-Paying States for Financial Advisors
Geographic location has a significant impact on financial advisor earnings. States with high concentrations of wealth, large financial centers, and higher costs of living tend to pay advisors substantially more. Here are the top 10 highest-paying states for financial advisors in 2026:
| Rank | State | Average Annual Salary | Median Annual Salary | Cost of Living Index |
|---|---|---|---|---|
| 1 | New York | $166,100 | $138,850 | 148.2 |
| 2 | Connecticut | $155,700 | $130,420 | 127.7 |
| 3 | Maine | $152,300 | $125,200 | 112.1 |
| 4 | Washington, D.C. | $149,800 | $124,600 | 152.1 |
| 5 | Massachusetts | $147,200 | $121,300 | 131.6 |
| 6 | Colorado | $143,500 | $119,800 | 116.5 |
| 7 | New Jersey | $141,900 | $118,200 | 125.4 |
| 8 | California | $140,600 | $117,500 | 142.2 |
| 9 | Washington | $138,200 | $115,900 | 118.7 |
| 10 | Illinois | $135,400 | $113,700 | 107.8 |
Important note: Higher salaries in states like New York and California often correspond to a higher cost of living. When adjusted for cost of living, states like Colorado, Illinois, and Washington may offer better purchasing power. Additionally, advisors in major metropolitan areas within each state typically earn more than those in rural areas.
FREE SIE Practice Test -->Free exam prep with practice questions & AI tutor
Financial Advisor Salary by Experience Level
Experience is one of the most significant factors determining how much a financial advisor earns. Unlike many professions where salary growth is linear, financial advisor compensation can grow exponentially as you build your client base and assets under management (AUM).
| Experience Level | Years | Base Salary | Total Compensation (with bonuses/commissions) | Typical AUM |
|---|---|---|---|---|
| Entry-Level | 0-2 years | $40,000 - $60,000 | $50,000 - $80,000 | $0 - $10M |
| Mid-Level | 3-7 years | $60,000 - $100,000 | $80,000 - $150,000 | $10M - $50M |
| Senior | 8-15 years | $100,000 - $175,000 | $150,000 - $300,000 | $50M - $150M |
| Top Performer | 15+ years | $150,000 - $250,000 | $300,000 - $500,000 | $150M - $500M |
| Elite Advisor | 15+ years | $200,000+ | $500,000 - $1,000,000+ | $500M+ |
Entry-Level (0-2 Years): $40,000 - $80,000
New financial advisors face the steepest challenge: building a client base from scratch. Most firms offer a modest base salary or draw during the first 1-2 years while you prospect for clients. Many entry-level advisors earn a training salary of $40,000-$60,000, with the potential to earn more through early commissions and bonuses.
Key challenges at this level:
- Meeting production minimums set by your firm
- Cold calling and prospecting for clients
- Building credibility without a track record
- Managing the emotional stress of commission-based income
Mid-Level (3-7 Years): $80,000 - $150,000
By year 3-5, successful advisors have built a solid client base and are generating consistent revenue. Total compensation typically ranges from $80,000 to $150,000, with the split between base salary and variable compensation depending on your firm and compensation model.
Senior (8-15 Years): $150,000 - $300,000+
Senior advisors with established practices and strong referral networks earn $150,000 to $300,000 or more. At this level, most of your income comes from recurring fees on existing client assets rather than new business development.
Top Performers & Elite Advisors: $500,000 - $1,000,000+
The top 5-10% of financial advisors earn between $500,000 and over $1 million annually. These advisors typically manage $200 million or more in client assets, have 15+ years of experience, and serve high-net-worth or ultra-high-net-worth clients. Some elite advisors at major wirehouses or running their own RIA firms earn $2 million to $5 million or more.
Start FREE SIE Prep Now -->Free exam prep with practice questions & AI tutor
Salary by Firm Type: Where You Work Matters
The type of firm you work for significantly impacts your compensation structure, earning potential, and payout percentage. Here is a breakdown of average total compensation by firm type:
| Firm Type | Examples | Avg. Total Comp (Mid-Career) | Payout Rate | Pros | Cons |
|---|---|---|---|---|---|
| Wirehouse | Morgan Stanley, Merrill Lynch, UBS, Wells Fargo | $150,000 - $300,000 | 35% - 50% | Training, brand, resources, benefits | Lower payouts, strict quotas, less autonomy |
| Regional Broker-Dealer | Raymond James, Baird, Stifel | $120,000 - $250,000 | 40% - 55% | Good training, more flexibility than wirehouses | Less brand recognition, moderate payouts |
| Independent Broker-Dealer | LPL Financial, Ameriprise, Commonwealth | $100,000 - $300,000+ | 80% - 95% | High payouts, independence, flexibility | Must cover own expenses, less support |
| Registered Investment Adviser (RIA) | Independent firms, boutique advisories | $100,000 - $500,000+ | 50% - 100% | Fiduciary standard, fee-only model, full control | Compliance burden, startup costs, no safety net |
| Insurance-Based | Northwestern Mutual, New York Life, MassMutual | $60,000 - $150,000 | Varies widely | Strong training programs, product support | Heavy insurance focus, product-driven culture |
| Bank-Based | Chase, Bank of America, Citibank | $70,000 - $130,000 | Salary + bonus | Steady salary, benefits, built-in client traffic | Lower upside, limited product shelf, less autonomy |
| Robo-Advisor / Fintech | Betterment, Wealthfront, Vanguard Personal Advisor | $80,000 - $140,000 | Salary-based | Stable income, technology-forward, work-life balance | Limited earning upside, less client interaction |
Wirehouses vs. Independent: The Great Tradeoff
The biggest decision in your financial advisor career is often whether to work at a wirehouse or go independent. Wirehouses like Morgan Stanley and Merrill Lynch offer lower payout rates (35-50%) but provide training, a recognized brand, compliance support, and benefits. Independent broker-dealers and RIAs offer much higher payouts (80-95% or even 100% for your own RIA) but require you to cover your own technology, rent, compliance, and marketing costs.
Example comparison for an advisor generating $500,000 in gross revenue:
| Factor | Wirehouse (45% payout) | Independent BD (90% payout) | Own RIA (100% revenue) |
|---|---|---|---|
| Gross Revenue | $500,000 | $500,000 | $500,000 |
| Payout/Revenue Kept | $225,000 | $450,000 | $500,000 |
| Operating Expenses | $0 (firm covers) | ~$80,000 | ~$120,000 |
| Net Take-Home | $225,000 | $370,000 | $380,000 |
Financial Advisor Compensation Models Explained
Understanding compensation models is essential to projecting your income. Each model has distinct implications for how you earn money and how your interests align with your clients.
1. Commission-Based Compensation
How it works: You earn a percentage of the financial products you sell, such as mutual funds, annuities, insurance policies, and stocks/bonds.
| Product Type | Typical Commission |
|---|---|
| Mutual Funds (A-shares) | 3% - 5.75% upfront |
| Variable Annuities | 5% - 7% upfront |
| Life Insurance | 50% - 110% of first-year premium |
| Stocks/Bonds | $0.01 - $0.10 per share or markup |
| Alternative Investments | 3% - 8% upfront |
Pros: High upfront payouts, potential for large single transactions Cons: Income is volatile, potential conflicts of interest, requires constant selling
2. Fee-Only Compensation
How it works: You charge clients directly through flat fees, hourly rates, or a percentage of AUM. You do not receive commissions from product sales.
| Fee Structure | Typical Range |
|---|---|
| AUM-Based | 0.50% - 1.50% of assets annually |
| Flat Fee (per plan) | $1,000 - $10,000 per financial plan |
| Hourly Rate | $150 - $400 per hour |
| Monthly Retainer | $200 - $500 per month |
Pros: Recurring revenue, aligned client interests, fiduciary standard, predictable income Cons: Takes time to build AUM, lower initial payouts than commissions
3. Fee-Based (Hybrid) Compensation
How it works: A combination of fees and commissions. You may charge AUM fees for advisory services while also earning commissions on insurance products or certain investments.
This is the most common compensation model in 2026, as it provides flexibility while generating both recurring and transactional revenue. Fee-based advisors must hold both advisory (Series 65/66) and brokerage (Series 7) licenses.
4. AUM Percentage Model (Most Common for Wealth Managers)
The AUM percentage model is the dominant compensation structure for wealth managers and financial planners. Here is how your income scales with assets:
| AUM Managed | Annual Fee (at 1%) | Advisor Payout (at 45%) | Advisor Payout (at 90%) |
|---|---|---|---|
| $10 million | $100,000 | $45,000 | $90,000 |
| $25 million | $250,000 | $112,500 | $225,000 |
| $50 million | $500,000 | $225,000 | $450,000 |
| $100 million | $1,000,000 | $450,000 | $900,000 |
| $250 million | $2,500,000 | $1,125,000 | $2,250,000 |
This table illustrates why growing your AUM is the single most important factor in building a high-income advisory career. An advisor managing $100 million at 1% with a 90% payout takes home $900,000 annually in recurring revenue.
FREE Series 7 Prep -->Free exam prep with practice questions & AI tutor
Factors That Affect Financial Advisor Salary
1. Assets Under Management (AUM)
AUM is the most direct driver of financial advisor income, especially for fee-based and fee-only advisors. More client assets equal more advisory fees. Growing AUM through new client acquisition and organic growth of existing portfolios is the primary path to higher earnings.
2. Client Base Size and Quality
The number of clients you serve and their average net worth directly impact your revenue. An advisor with 50 clients averaging $2 million each ($100M total AUM) earns significantly more than one with 200 clients averaging $100,000 each ($20M total AUM), and with less work.
3. Professional Credentials
Credentials like the CFP (Certified Financial Planner) and CFA (Chartered Financial Analyst) can boost earning potential by 10-30%. These designations signal expertise, build client trust, and enable you to serve higher-net-worth clients.
| Credential | Avg. Salary Premium | Best For |
|---|---|---|
| CFP | +15% to +25% | Financial planners, wealth managers |
| CFA | +20% to +30% | Investment analysts, portfolio managers |
| ChFC | +10% to +20% | Comprehensive planning specialists |
| CLU | +10% to +15% | Insurance-focused advisors |
| CIMA/CPWA | +15% to +25% | High-net-worth wealth managers |
4. Firm Type and Payout Structure
As detailed in the firm comparison above, your payout rate varies dramatically by firm type. An advisor generating $300,000 in revenue keeps $135,000 at a wirehouse (45% payout) versus $270,000 at an independent BD (90% payout).
5. Geographic Location
Advisors in high-wealth metropolitan areas like New York City, San Francisco, and Boston earn significantly more than those in rural markets. However, cost of living differences can offset some of this advantage.
6. Specialization and Niche
Advisors who specialize in a niche market often earn more than generalists. Popular high-earning niches include:
- Executives and stock option planning (tech companies, corporate officers)
- Medical professionals (doctors, dentists)
- Business owners (succession planning, exit strategies)
- Retirees and pre-retirees (distribution planning)
- Divorcees (CDFA designation)
- Athletes and entertainers (specialized wealth management)
7. Business Development Skills
Your ability to attract and retain clients is ultimately the most important factor in your earning potential. Advisors who excel at networking, asking for referrals, and marketing their practice consistently out-earn those who rely solely on firm-provided leads.
How to Maximize Your Financial Advisor Salary
1. Earn the CFP Designation
The CFP (Certified Financial Planner) is the gold standard credential for financial advisors. CFP holders earn 15-25% more on average than non-credentialed advisors. The CFP requires a bachelor's degree, completion of a CFP Board-approved education program, passing the CFP exam, and 6,000 hours of professional experience (or 4,000 hours in an apprenticeship).
2. Pursue the CFA Charter (For Investment-Focused Advisors)
The CFA (Chartered Financial Analyst) is the most prestigious credential in the investment world. While the CFA is more relevant for portfolio managers and analysts, advisors with a CFA charter earn 20-30% more and gain an edge when serving sophisticated investors.
3. Grow Your AUM Aggressively
The math is simple: more assets under management equal more income. Strategies for growing AUM include:
- Asking every client for referrals
- Hosting educational seminars and webinars
- Partnering with CPAs and estate attorneys
- Specializing in a high-net-worth niche
- Building a strong online presence
4. Specialize in a High-Value Niche
Advisors who serve a specific niche can charge premium fees and attract clients more easily. Instead of being a generalist, consider specializing in executives, medical professionals, business owners, or retirees.
5. Consider Going Independent
As the payout comparison showed, independent advisors keep a much larger share of their revenue. Once you have an established client base (typically $30M+ AUM), transitioning to an independent BD or launching your own RIA can significantly increase your take-home pay.
6. Continuously Improve Sales and Communication Skills
Technical knowledge alone does not build a high-income advisory practice. Invest in sales training, public speaking, and communication skills. The highest-earning advisors are those who combine technical expertise with exceptional client relationship skills.
7. Leverage Technology
Modern technology enables advisors to serve more clients more efficiently. Tools for financial planning, portfolio management, CRM, and marketing automation allow you to scale your practice without proportionally increasing your overhead.
Getting Licensed: Your First Step to Earning as a Financial Advisor
Before you can earn a cent as a financial advisor, you need to pass the appropriate licensing exams. The licenses you need depend on your chosen career path:
Required Licenses by Path
| Career Path | Required Exams | Cost | Study Time |
|---|---|---|---|
| Broker-Dealer Advisor | SIE + Series 7 + Series 63 or 66 | ~$555-$665 total | 3-5 months |
| RIA Advisor (Fee-Only) | Series 65 | ~$187 | 4-8 weeks |
| Dual-Registered (Most Flexible) | SIE + Series 7 + Series 66 | ~$665 total | 3-5 months |
| Insurance + Securities | SIE + Series 7 + Series 66 + State Insurance | ~$700+ total | 4-6 months |
The SIE Exam (Securities Industry Essentials)
The SIE exam is the foundation exam for anyone entering the securities industry. It covers basic industry knowledge and can be taken by anyone 18 or older without firm sponsorship.
- Questions: 85 (75 scored)
- Passing Score: 70%
- Cost: $80
- Study Time: 2-4 weeks
The SIE is an excellent starting point because you can pass it before being hired, showing employers you are serious about a career in financial services.
The Series 7 Exam (General Securities Representative)
The Series 7 is the primary license for broker-dealer representatives selling securities. It is required to sell stocks, bonds, mutual funds, options, and other securities products.
- Questions: 135 (125 scored)
- Passing Score: 72%
- Cost: $245
- Study Time: 6-10 weeks
- Prerequisite: Must be sponsored by a FINRA member firm
The Series 65 Exam (Investment Adviser Representative)
The Series 65 allows you to act as an investment adviser representative and provide financial advice for a fee. This is the primary license for fee-only advisors at RIAs.
- Questions: 130
- Passing Score: 72%
- Cost: $187
- Study Time: 4-6 weeks
- Prerequisite: None (no firm sponsorship required)
The Series 66 Exam (Combined State Law)
The Series 66 combines the Series 63 and Series 65, covering both state securities registration and investment advisory regulations. It is the most efficient path for advisors who already have or plan to obtain the Series 7.
- Questions: 100
- Passing Score: 73%
- Cost: $177
- Study Time: 3-5 weeks
- Prerequisite: Must also pass the SIE and Series 7
The CFP Exam
Beyond FINRA licenses, the CFP exam is the most impactful credential for boosting your salary. The CFP exam covers financial planning, tax planning, retirement planning, estate planning, and insurance.
- Questions: 170
- Duration: Two 3-hour sessions
- Pass Rate: ~60-67%
- Prerequisite: CFP Board-approved education, bachelor's degree
Start Preparing for FREE Today
Every week you spend not studying is a week you're not earning. Our free exam prep resources help you pass on the first attempt:
What you get -- 100% free:
- Thousands of practice questions covering every exam domain
- AI-powered explanations for every wrong answer -- understand why, not just what
- Personalized study plans that adapt to your weak areas
- Progress tracking so you know when you're ready for exam day
- Mobile-friendly -- study on your commute, lunch break, or anywhere
Start your FREE practice test now -->Free exam prep with practice questions & AI tutor
Financial Advisor Salary vs. Related Careers
How does the financial advisor salary compare to similar finance careers?
| Career | Median Salary | Top Earner Potential | Required Credentials |
|---|---|---|---|
| Financial Advisor | $102,140 | $500K - $1M+ | SIE, Series 7/65/66, CFP |
| Financial Analyst | $95,080 | $200K - $400K | CFA preferred |
| Accountant/CPA | $79,880 | $150K - $300K | CPA license |
| Insurance Agent | $57,860 | $200K - $500K | State insurance license |
| Loan Officer | $65,740 | $150K - $250K | NMLS license |
| Bank Branch Manager | $75,820 | $120K - $180K | No specific license |
| Portfolio Manager | $131,710 | $500K - $2M+ | CFA charter |
Financial advisors have one of the highest earning ceilings among finance careers. While the median salary is comparable to financial analysts, the top-end earning potential is significantly higher due to the entrepreneurial nature of building an advisory practice.
The Bottom Line: Is Financial Advising Worth It?
Financial advising is one of the most rewarding careers in finance, both financially and personally. The median salary of $102,140 is well above the national average, and the upside potential of $500,000 to over $1 million makes it one of the highest-paying careers available without an advanced degree.
However, success is not guaranteed. The first 3-5 years are challenging, with high attrition rates and income uncertainty. Advisors who survive the early years and build a strong client base are typically well-rewarded for their persistence.
Key takeaways for maximizing your financial advisor salary:
- Get licensed as soon as possible (start with the SIE exam)
- Earn the CFP designation to boost credibility and income
- Choose the right firm type for your career stage
- Focus on growing AUM through client acquisition and referrals
- Specialize in a high-value niche
- Consider going independent once you have an established book of business
- Continuously invest in your sales and relationship skills
Ready to start your financial advisor career? The first step is passing your licensing exams. Don't pay hundreds for prep courses -- start free and see how far you get.