Financial advisors are one of the least happy careers in the United States.
At CareerExplorer, we conduct an ongoing survey with millions of people and ask them how satisfied they are with their careers. As it turns out, financial advisors rate their career happiness 2.7 out of 5 stars which puts them in the bottom 10% of careers.
To put this into perspective, we compared how happy financial advisors are to similar careers in the industry. Take a look at the results below:
Salaries and satisfaction ratings in similar careers
Career
Satisfaction
Avg Salary
Account manager
2.7
$47k
Securities and commodities broker
2.7
$63k
Financial analyst
2.7
$92k
Compliance manager
2.7
$125k
Advertising sales agent
2.7
$52k
Financial advisor
2.7
$94k
Cost estimator
2.7
$65k
Revenue agent
2.7
$57k
Investment banker
2.7
$73k
Tax preparer
2.7
$46k
So what does it mean to be happy in your career? Let’s break it down into different dimensions:
Salary: Are financial advisors happy with their salary?
Meaning: Do financial advisors find their jobs meaningful?
Personality fit: How well suited are people’s personalities to their everyday tasks as financial advisors?
Work environment: How enjoyable are financial advisor’s work environments?
Skills utilization: Are financial advisors making the best use of their abilities?
Are financial advisors happy with their salary?
Financial advisors rated their satisfaction with their salaries 3.0/5. Few are explicitly unhappy with their salaries, with most financial advisors having generally positive views of their salary.
We asked financial advisors how fairly compensated they are for their work. Their response was:
3.0 out of 5 stars
1042 financial advisors
5 Star
12%
12% of financial advisors rated their compensation 5 stars
4 Star
26%
26% of financial advisors rated their compensation 4 stars
3 Star
26%
26% of financial advisors rated their compensation 3 stars
2 Star
20%
20% of financial advisors rated their compensation 2 stars
1 Star
15%
15% of financial advisors rated their compensation 1 stars
Do financial advisors find their jobs meaningful?
On average, financial advisors rate the meaningfulness of their work a 2.6/5. While most financial advisors aren’t very fulfilled by their work, some people may still manage to find meaning in it.
We asked financial advisors how meaningful they found their work. Their response was:
2.6 out of 5 stars
1041 financial advisors
5 Star
10%
10% of financial advisors rated how meaningful they found their career 5 stars
4 Star
17%
17% of financial advisors rated how meaningful they found their career 4 stars
3 Star
23%
23% of financial advisors rated how meaningful they found their career 3 stars
2 Star
25%
25% of financial advisors rated how meaningful they found their career 2 stars
1 Star
25%
25% of financial advisors rated how meaningful they found their career 1 stars
How well are people’s personalities suited to everyday tasks as financial advisors?
Financial advisors rated their personality fit with their work an average of 3.5/5. The majority of financial advisors find their personalities quite well suited to their work, with relatively few having complaints about their fit.
We asked financial advisors how well their personalities fit into their careers. Their response was:
3.5 out of 5 stars
1111 financial advisors
5 Star
21%
21% of financial advisors rated their career fit 5 stars
4 Star
35%
35% of financial advisors rated their career fit 4 stars
3 Star
26%
26% of financial advisors rated their career fit 3 stars
2 Star
13%
13% of financial advisors rated their career fit 2 stars
1 Star
6%
6% of financial advisors rated their career fit 1 stars
How enjoyable is a financial advisor’s work environment?
As a whole, financial advisors rated their enjoyment of their work environment 3.3/5. Most of them tend to enjoy, or at least not be actively bothered by, their work environment.
We asked financial advisors how much they enjoyed their work environment. Their response was:
3.3 out of 5 stars
1110 financial advisors
5 Star
15%
15% of financial advisors rated their work environment 5 stars
4 Star
32%
32% of financial advisors rated their work environment 4 stars
3 Star
28%
28% of financial advisors rated their work environment 3 stars
2 Star
18%
18% of financial advisors rated their work environment 2 stars
1 Star
7%
7% of financial advisors rated their work environment 1 stars
Are financial advisors making the best use of their abilities?
Former financial advisors on CareerExplorer have rated their skills utilization 2.9/5. Financial advisors tend to feel that they don’t manage to use their abilities to their fullest, when compared to other careers.
We asked financial advisors how well their abilities were used in their careers. Their response was:
2.9 out of 5 stars
1110 financial advisors
5 Star
12%
12% of financial advisors rated their how well their skills were utilized in their career 5 stars
4 Star
22%
22% of financial advisors rated their how well their skills were utilized in their career 4 stars
3 Star
25%
25% of financial advisors rated their how well their skills were utilized in their career 3 stars
2 Star
25%
25% of financial advisors rated their how well their skills were utilized in their career 2 stars
1 Star
16%
16% of financial advisors rated their how well their skills were utilized in their career 1 stars
At CareerExplorer, we conduct an ongoing survey with millions of people and ask them how satisfied they are with their careers. As it turns out, financial advisors rate their career happiness 2.7 out of 5 stars which puts them in the bottom 10% of careers.
A financial advisor is a great career path for someone who wants to use both analytical skills and so-called soft skills. Financial advisors should have an aptitude for math and the ability to determine the best course of action for their clients.
Advisors as a group enjoy high levels of satisfaction with their jobs, their lives and their work-life balance. Overall, 81% say they like their job better than the average person, up from 79% in 2018. Even better, job satisfaction increases with age and tenure in the business.
Financial advisors are enterprising and conventional
If you are one or both of these archetypes, you may be well suited to be a financial advisor. However, if you are realistic, this is probably not a good career for you. Unsure of where you fit in? Take the career test now.
Lack of work ethic. It takes a lot of hard work and discipline to break into a career as a financial advisor. While many are willing to work hard for a period of time, fewer are willing and able to maintain the high-level work ethic required to survive and thrive as a successful advisor.
How stressful is being a financial advisor? Being a financial advisor can be highly stressful due to the responsibility of managing clients' financial futures, market volatility, and the need to make crucial decisions under pressure. Stress levels can vary based on individual clients and market conditions.
The drawbacks include high stress, the hard work needed to build a client base, and the ongoing need to meet regulatory requirements. This is a lucrative career, but it's one with a high burnout rate.
According to various studies and publications, the average age of financial advisors is somewhere between 51 and 55 years, with 38% expecting to retire in the next ten years.
Most financial advisors love the freedom that comes with being able to do what they want and when they want. You can decide to work with a wide range of clients or work exclusively in a niche that you love. Of course, I try to get financial advisors to choose a niche and specialize in that niche.
Financial advisors are most concerned about business development. Nearly 80% cite the challenge of finding “ideal” clients (Exhibit 1). While an “ideal” client will vary among financial advisors, sourcing them instead of less preferred clients is a big deal.
Meanwhile, you must have a deep understanding of the markets, analytical skills and training, and a passion for finance. Soft skills are as critical as hard skills, like investing skills and market timing. Successful advisors are more than good with numbers.
📈 According to a study by the Myers-Briggs Company, introverts make up 56.8% of financial professionals, while extroverts make up 43.2%. This means that there are plenty of introverted financial professionals out there who have achieved success in their field.
Introverted sensors, ISTJs are known as the best personality type for accounting jobs, CFO positions, or careers as auditors. This type is loyal, hardworking, and understands the importance of their roles; but the real predictor of success here is their analytical nature that enables them to work quickly and precisely.
Financial advisors in the U.S. also report high levels of stress and depression. One report found stress levels of financial advisors to be 25% higher than the norm for U.S. workers.
Lack of perceived need. Many consumers share the perception that they simply don't need a financial planner. They may receive financial advice from a family member or friend; in some cases, they feel they've already achieved their goals and thus don't require advice.
Over the next decade, the job outlook for financial advisors looks extremely promising, with abundant opportunities nationwide. The Bureau of Labor Statistics predicts employment of financial advisors will expand much faster than the average occupation.
The average salary of financial advisors with 1-2 years of experience in the U.S. is $63,210 while those with over 10 years of experience earn over $107,068 per year. Glassdoor: According to Glassdoor, the average salary of a financial advisor is $118,385 yearly.
A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.
The demand for experienced financial advisers has experienced strong growth in the first half of 2023, reflecting an evolving landscape within the financial services industry.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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