Let's face it, the Financial Advisor industry is booming and is a very lucrative field of specialty. It has been reported by the US Bureau of Labor Statistics that there has been an increase in the total number of Financial Advisor related jobs during the last years, and this area is expected to increase through 2020. In fact, an estimated growth of roughly 32 %, Which equates to approximately 273,200 total positions are expected to be filled by 2020.
But how do you go about finding your ideal Financial Advisory job position if you have an interest in this field? Below are some tips that may assist you with determining your employment as a Financial Adviser.
There's the Personal Financial Advisory sector, the Business and Financial Operations sector, as well as other related Financial Advisory jobs within this field to choose from.
Some of the positions are commission only where you are required to sell various financial products without a salary. Companies that typically offer commission only based positions experience a high turnover rate; Normally as high as 80%. Commission-based only Financial Advisory type positions requires strong sales ability to compensate for the commission-only based pay structure.
There are other Financial Advisory related positions that require you to obtain clients that possess a certain number of assets within your first few months of employment. You also must be good at obtaining new clients on an on-going basis, or selling financial products that generate a reoccurring income on a month-to-month basis.
Types of Financial Advisory Job Functions
There are four main types of Financial Advisory positions, and it's up to you to determine which one is most suitable for your personality and skill set. They include the following:
1. Commissioned-Only Based Advisers – they are often referred to as Registered Representatives, Agents of Broker-Dealers or Brokers. They typically receive a commission from selling financial products such as mutual funds, investment products, annuities, insurance and other structured products.
2. Fee-Only Advisers – Fee-only Financial Advisers are compensated based on a percentage of the total assets managed. They are also compensated with the retainer or on an hourly basis.
3. Fee-Based Advisers – The fee-based Financial Adviser is compensated for selling products on a commission basis, as well as compensation for hourly management fees.
4. Salaried Advisers – The salary-based Financial Adviser is compensated by receiving a monthly salary in addition to bonuses which are based on the value of the assets that they manage. These Financial Advisers are emerging more and more at credit unions and banks.
To conclude, you'll find that there are various titles associated with acting in the Financial Advisory capacity such as a CFA, a CFP, a Financial Planner or general Financial Adviser. However, the compensation structure could consist of either of those indicated above. Another thing to keep in mind when selecting the ideal Financial Advisory position is the level of fiduciary responsibility that is associated with each position.
Speaking of such, the current fiduciary requirements will be experiencing some modifications in 2017, which may also have an impact on both the job function and the compensation structure as well.