How to Become a Financial Advisor

Personal financial advisors provide advice on investments, insurance, mortgages, estate planning, taxes, and retirement to help individuals manage their finances. BLS lists the typical duties as meeting clients to discuss their goals, explaining the services they provide, educating clients about investment options and risks, recommending investments or selecting them on the client's behalf, helping clients plan for circumstances such as education or retirement, and researching investment opportunities.^[5]

O*NET's most important tasks point the same way, in a specific order. The two highest are interviewing clients about income, expenses, insurance, taxes, objectives, and risk tolerance to build a financial plan, and analyzing what clients say to choose strategies, both rated 91 on a 100-point importance scale. Next come answering clients' questions about plans (89), reviewing accounts and plans regularly to see whether life or economic changes call for a reassessment (87), and managing client portfolios (86).^[6] Recommending financial products such as stocks, bonds, mutual funds, or insurance scores 80, below the planning tasks. The job is mostly listening, analysis, and follow-up, and product recommendations come after those.

One task sits apart from the technical work. BLS says many advisors spend a lot of time marketing their services, meeting potential clients through seminars, business networking, and social networking, and O*NET lists recruiting and maintaining a client base as a core task.^[5][6] Finding clients is part of the job description, not an extra.

O*NET's work-context survey describes an indoor desk job built on communication. Ninety-two percent of respondents reported using email every day, 68 percent reported daily phone conversations, and 44 percent reported daily face-to-face discussions with individuals and teams. Sixty-five percent said they sit continually or almost continually.^[6]

Accuracy matters more than speed. Sixty-five percent called being exact or accurate extremely important, and a third said a mistake that was not easily correctable would have very serious results.^[6] Decisions carry weight: 31 percent said their decisions usually have very important results for their employer and 58 percent said important results. The freedom varies. Forty-four percent reported a lot of freedom to set their own tasks, priorities, and goals and another 44 percent some freedom, but only 15 percent said they have a lot of freedom to make decisions without supervision, which fits a role where checking work against legal and regulatory standards is a core activity, rated 75.^[6]

The activities O*NET ranks highest are getting information (94), analyzing data or information (92), and working with computers (91), followed by building working relationships (89) and making decisions and solving problems (89).^[6] In a typical day that means reading, analyzing, and documenting more than selling. Time pressure is mild: 12 percent said strict deadlines come up every day, and 96 percent described their schedule as regular.^[6]

Most advisors work in one industry. BLS lists securities, commodity contracts, and other financial investments and related activities as employing 65 percent of personal financial advisors, credit intermediation 16 percent, and insurance carriers and professional, scientific, and technical services 3 percent each.^[5] In the federal wage survey, the securities industry employs 192,160 advisors, at a median of $120,870, and banks and other credit intermediaries employ 44,920 at $95,720.^[1] The industry table in our salary guide lists the smaller employers.

The setting changes the job. Employer type shapes the job and the pay. BLS notes that advisors at financial planning firms, and those who are self-employed, charge a flat fee or earn commissions on the financial products they sell, so the practice itself is another route.^[5] Because BLS estimates 9.7 percent of advisors are self-employed, against 5.8 percent across all occupations, running your own practice is a common path, though the federal wage data does not cover it.^[2]

Geographically the jobs concentrate. California (32,200), New York (21,550), Florida (21,490), Texas (18,200), and North Carolina (12,340) hold 39.6 percent of the 266,800 jobs in the wage survey, with California first at 32,200.^[1] New York pays more: its $166,400 median is the highest among states with at least 1,000 advisors. The state table shows every state, and the cost-of-living section shows how the order changes after prices; New York and New Jersey stay on top, while California falls out of the top five.^[7]

1. Earn a bachelor's degree. BLS says advisors typically need a bachelor's degree, although employers usually do not require a specific course of study; common fields are business, social science, and mathematics, and courses in investments, taxes, estate planning, and risk management may be helpful.^[5]

2. Get hired by a firm that will train and sponsor you. BLS lists no related work experience as typical for entry, so you can be hired from a degree program.^[2] The firm matters because licensing is tied to it: FINRA states that the Series 7 requires being associated with and sponsored by a FINRA member firm.^[8]

3. Pass the licensing exams for the products you sell. BLS says advisors who directly buy or sell stocks, bonds, or insurance policies, or who give specific investment advice, may need a combination of licenses that varies with the products they sell.^[5] The next section covers the FINRA exams.

4. Complete on-the-job training. New advisors work under supervision of senior advisors and learn how to build a client network and develop portfolios. BLS says this training usually lasts more than a year.^[5]

5. Register where the rules require it. BLS says advisors in small firms that manage clients' investments must be registered with state regulators, and those in large firms with the U.S. Securities and Exchange Commission.^[5]

6. Consider the CFP and a graduate degree. BLS says a master's degree and certification may improve chances for advancement.^[5] Both are covered below.

The first year is mostly a test of whether you can find clients. O*NET's core tasks include recruiting and maintaining a client base, and BLS says many advisors spend a lot of time marketing, through seminars and networking.^[6][5] BLS says new advisors work under the supervision of senior advisors while they learn to build a client network.^[5] Ask any employer how new advisors get their first clients, whether through the firm's existing book, bank customers, or cold prospecting, and how pay changes once you carry your own.

The nearest related roles are a useful comparison for a first job. Securities, commodities, and financial services sales agents earn a median of $78,660, with 35,100 openings a year projected, and BLS lists a bachelor's degree and no prior work experience as typical for entry.^[1][2] Insurance sales agents earn $62,280 and BLS lists a high school diploma as typical entry education.^[1][2] Both sell financial products, and either can lead toward the advisor role, but they are separate occupations with lower pay, and the federal data does not say how often people move between them.

Whatever the starting title, what counts is a record you can show: a client count, assets under your care, and a clean compliance history.

BLS names five qualities as important: analytical skills to assess economic trends, regulatory changes, and a client's comfort with risk; interpersonal skills to make clients comfortable and earn their trust; math skills; sales skills to be convincing and persistent in selling their services; and speaking skills to explain complex financial concepts in a way clients understand.^[5]

O*NET's work-style ratings add the personality side. Attention to detail scores 100 and integrity 98, followed by dependability (88), cautiousness (78), and intellectual curiosity (78). Social orientation scores 77 and achievement orientation 76.^[6] The profile is of a careful, ethical person who is also comfortable around people. On skills, O*NET rates active listening and reading comprehension highest at 78, then speaking (75), writing (72), critical thinking (69), and mathematics (66).^[6] Customer and personal service is the top knowledge area at 86, ahead of economics and accounting at 77.^[6]

The tools are practical. O*NET lists customer relationship management software including Salesforce and ACT!, financial analysis and planning software such as Ibbotson Portfolio Strategist, Finance Logix Retirement Planner, and WealthTec Foundations, Monte Carlo simulation software, compliance software, and Microsoft Excel and PowerPoint.^[6] Excel and a CRM can be learned before the first day. The planning software is usually taught by the employer. The skills that take longer are conversational: practice explaining a retirement projection to someone who is nervous about money, and you have a head start on the hardest part of the job.

Bachelor's degree. This is the entry credential. BLS says employers usually do not require a specific course of study, so finance, economics, business, and mathematics all work.^[5] The most direct choice is finance: our ranking of bachelor's in finance programs analyzed 743 accredited programs on graduation rate, cost, selectivity, and outcomes. If you are not sure of the field yet, our guide to what you can do with a finance degree shows where the major leads. If you plan to pursue the CFP, check that the program has CFP Board registered coursework, since CFP Board requires that coursework alongside the degree.^[3]

Master's degree. BLS says a master's degree in a field such as finance or business administration may improve an advisor's chances of becoming a financial manager and of attracting new clients.^[5] Our master's in finance ranking analyzed 165 programs, and the MBA vs. master's in finance guide compares the two routes. Our MBA ranking analyzed 978 programs.

BLS does not publish advisor pay by degree level, so no federal figure shows what a graduate degree adds. Because the job does not require work experience first, the more efficient sequence for most people is to start working, learn what kind of practice you want, and then judge a graduate degree on its cost and the doors it opens, mainly into management.

Licensing is the legal side of the job, and BLS says the combination you need varies with the products you sell.^[5] FINRA runs the qualification exams. The Securities Industry Essentials (SIE) exam has 75 questions in 1 hour and 45 minutes, a passing score of 70, and a cost of $100.^[9] It is open to anyone aged 18 or older, association with a firm is not required, and results are valid for four years.^[9] That means you can take it before you are hired.

The product exams are different. FINRA lists the Series 7 as 125 questions in 3 hours and 45 minutes for $395, and says a candidate who passes it is qualified for the solicitation, purchase, and sale of all securities products, with FINRA setting out the specific products. You must pass both the Series 7 and the SIE to obtain the General Securities registration, and the Series 7 requires being associated with and sponsored by a FINRA member firm.^[8][4]

The Series 63, 65, and 66 are exams from the North American Securities Administrators Association that FINRA administers. FINRA lists the Series 63 at 60 questions in 1 hour and 15 minutes for $147, the Series 65 at 130 questions in 3 hours for $187, and the Series 66 at 100 questions in 2 hours and 30 minutes for $177.^[4] FINRA's rule is that an individual must pass the exams before engaging in the areas of business they cover.^[4] Which combination your firm requires depends on whether you sell securities, give advice for a fee, or both, and the firm's compliance staff will tell you; this guide does not reproduce a rule that FINRA's pages do not state. Your state regulator also publishes its own requirements, and BLS points to CareerOneStop for them.^[5]

No federal rule requires a certification, and BLS says only that certifications may enhance an advisor's reputation and help bring in new clients.^[5] The best known is the Certified Financial Planner designation from CFP Board, and O*NET lists it first among the reported titles for this occupation.^[6]

CFP Board sets four requirements: education, exam, experience, and ethics.^[3] The education requirement is coursework through a CFP Board Registered Program plus a bachelor's degree or higher in any discipline, with up to 5 years after passing the exam to finish the degree. The exam is a 170-question multiple-choice test in two 3-hour sessions over one day. Experience is 6,000 hours of professional experience in the financial planning process, or 4,000 hours of apprenticeship experience that meets additional requirements. The final step is an ethics declaration and a background check.^[3]

The standard exam registration rate is $925, with an early rate of $825 and a late rate of $1,025, and the exam is offered three times a year.^[10] At 2,000 working hours a year, 6,000 hours is about three years of full-time planning work, so the designation is a mid-career step for most people, not an entry credential. BLS does not publish pay by certification, which means the case for the CFP rests on the clients it helps you win and the advancement it supports, and we cannot cite a pay premium. For how it differs from the analyst credential, see our CFP vs. CFA guide.

Advisors typically work in offices. BLS says most work full time and some work more than 40 hours a week, and that they may go to meetings on evenings and weekends to meet prospective or existing clients; some travel to conferences or teach finance seminars in the evening to bring in more clients.^[5] O*NET's hours question gives the split: 54 percent of respondents reported working more than 40 hours in a typical week and 42 percent reported 40.^[6]

The job also carries a competitive edge. In O*NET's survey, 12 percent called the level of competition extremely competitive and 36 percent highly competitive, with 44 percent saying moderately.^[6] Conflict is rare: 76 percent said they deal with unpleasant, angry, or discourteous people only once a year or more but not every month.^[6] It is a people job without much confrontation, in which the pressure comes from building a client base and responsibility for other people's money.

The federal data shows few formal rungs. BLS lists long-term on-the-job training and no required work experience, and it describes advancement mainly through a master's degree, which may improve the chances of becoming a financial manager and of attracting new clients.^[5][2] The usual progression is therefore larger client books, a move to a bigger or better-paying firm, a move into management, or a practice of your own. O*NET's reported titles show the senior end: wealth advisor, wealth manager, portfolio manager, and financial consultant sit under the same occupation.^[6]

Financial managers are the formal step up, 841,710 jobs with a median of $166,570, and BLS lists five years or more of related experience as typical for entry.^[1][2] BLS does not publish pay by years of experience, so the percentile range is the best federal guide to how far the job can go: $72,440 at the 25th percentile, $105,070 at the median, $176,790 at the 75th, and $357,020 at the 90th.^[1] Whether you reach the top of that range depends on the clients you keep, which no degree decides.

Five occupations sit closest to this one. Over 2025 to 2035, BLS projects growth of 1.4 percent for personal financial advisors, 7.2 percent for financial analysts, 9.7 percent for financial managers, 1.4 percent for securities, commodities, and financial services sales agents, 3.3 percent for insurance sales agents, and a 3.8 percent decline for insurance underwriters, against 3.5 percent growth for all occupations.^[2]

Financial analysts are the main alternative for someone who likes finance but not selling. They earn a median of $102,740, close to advisors, with about 24,700 openings a year and a faster projected growth rate, though with a smaller top end: the 90th percentile is $180,860, against $357,020 for advisors.^[1][2] See the financial analyst career guide and the salary guide. Financial managers pay more and grow faster, but need five years of related experience first; the financial manager guide covers that route.

Insurance underwriters earn $81,370 and are the one role in the group projected to shrink.^[1][2] Insurance sales agents earn $62,280 and need only a high school diploma, but the pay reflects it.^[1][2] If you want a client-facing finance job and the selling does not appeal, the agent roles do not remove the selling; analyst, underwriter, and accounting roles do.

BLS addresses AI directly. It says the availability of artificial intelligence tools for financial advice may moderate demand for personal financial advisors, but that many consumers are expected to continue to rely on human advisors for more complex and specialized investment advice.^[5] Our reading of that sentence is that routine portfolio advice is the exposed part, and the judgment and trust parts are not.

O*NET's automation question shows how much of the job is already automated: 12 percent called it highly automated, 24 percent moderately, 44 percent slightly, and 16 percent not at all.^[6] The software list backs this up, with planning, simulation, compliance, and CRM tools in daily use.^[6] The practical advice is to build the skills that tools do not replace. O*NET rates establishing and maintaining working relationships at 89 and interpreting information for others at 81, and BLS names interpersonal skills and the ability to explain complex financial concepts as important qualities.^[6][5] An advisor whose value is portfolio selection alone is the most exposed. One whose value is helping a family through a retirement, an inheritance, or a business sale is much less so.

The median annual wage was $105,070 in May 2025, with the middle half earning between $72,440 and $176,790.^[1] Employment is projected to grow from 299,400 to 303,500 jobs between 2025 and 2035, with about 17,100 openings a year including replacements; BLS expects most of those to come from workers leaving the occupation.^[2][5] Demand is supported by retiring baby boomers and younger clients who inherit assets, and limited by the possible effect of AI advice tools.^[5]

The spread is wide: the lowest-paid 10 percent earn less than $50,190 and the highest-paid 10 percent more than $357,020.^[1] The survey excludes the self-employed, and BLS estimates 9.7 percent of advisors are, so the figures describe employed advisors only.^[11][2] The salary guide breaks the pay down by state, industry, and cost of living.

The case for it. The median wage is $54,090 above the median for all occupations, and the 90th percentile, $357,020, is above the 90th percentile for financial managers.^[1][2] A bachelor's degree in nearly any field is enough, no prior experience is expected, and the firm trains you.^[5] A regular, set schedule is reported by 96 percent of respondents.^[6]

The case against. Growth is slow, so openings are mostly replacements.^[5] Income depends on building a client base, and BLS describes advisors as spending a lot of time marketing their services.^[5] More than half of respondents work over 40 hours, with evening meetings common.^[6][5] Mistakes carry consequences, and licensing and registration rules apply.^[6][5] The wage survey cannot tell you what the self-employed earn, so anyone planning an independent practice is working without a federal benchmark.

O*NET's interest profile is a useful self-check. On its 100-point scale, the occupation rates 81 for Enterprising interests (leading, persuading, selling), 77 for Conventional (organizing data and following procedures), 51 for Social, 38 for Investigative, 12 for Artistic, and 0 for Realistic. Its strongest specific interest area is finance at 96, ahead of sales at 79 and professional advising at 75.^[6] If you like markets and models but not talking to strangers, an analyst job such as the one in our financial analyst guide will suit you better.

This career suits people who combine two things that rarely come together: care with numbers and rules, and comfort asking strangers for their business. O*NET rates attention to detail at 100 and integrity at 98, but also social orientation at 77, and BLS puts sales skills on its list of important qualities.^[6][5] It suits people who want a path in with a bachelor's degree and no prior experience, and who can accept an income that depends on results.

It does not suit three kinds of person. It does not suit someone who wants a guaranteed salary that grows on a schedule, because the range depends heavily on the client book. It does not suit someone who dislikes prospecting, because marketing is part of the work in BLS's description.^[5] And it does not suit someone who wants pure analysis without client contact, for whom the financial analyst route fits better.