Some Financial Planner Salary Guidelines
What is the typical financial planner salary? Financial planner salary guidelines are best determined by the exact description of a financial planner. A real financial planner, in most states, must be a licensed professional who gives a full range of financial information that includes estate planning, investment strategies, insurance comparisons, and daily financial tips.
He must be not only licensed as a certified financial planner (CFP), he usually needs to have additional licenses in the disciplines he chooses to advise on. In other words, if he gives investment advice he will need licenses for probably life insurance and annuities, as well as a Series 6 license for stocks.
Some financial planners work for large financial companies and earn a commission for sitting with clients. A financial planner salary includes a commission based on the types of services that a client buys. Occasionally a CFP will charge to do an entire financial analysis of all your interests. This could take a few days and could run you anywhere from $500 to $5,000 depending on what you are asking in return.
Some reports are nothing more than a page with graphs showing where you money goes. Other reports are much more detailed and offer suggestions on how to increase your net worth, decrease your liabilities, and stay liquid.
Because finance is a big industry and a constant money maker in every economy, many CFPs are self employed. In cases like this, there are two ways someone can represent products and make suggestions. One is that he is a “free agent”. He can recommend and sell a wide range of products and services from multiple companies. Someone who owns an insurance agency is frequently a CFP as well.
The other is a captured agent. He is associated only with one company that sells, most likely, a wide range of financial products.
In most cases, an experienced planner can easily expect a six figure income if he really knows the business, has his licenses in place, and works in a large urban area. A CFP in New York will certainly make more than someone in Duluth. A beginner should start at a large company to get experience and can expect an entry level salary of about $35,000 plus commissions.
