Financial Planning Salaries

Financial planning is a lucrative job today. With more and more people earning more and more money, it is logical to assume that more and more people will look for advice in planning their financial activities. Basically, a financial planner is someone who helps a person to manage his or her finance in the optimum manner possible. The financial planner finds out suitable investment avenues for a person based on the person’s attitude towards risk and sources of income. Generally, people with MBAs or with some other degree in finance are considered for the job of financial planning. There are plenty of companies in the financial sector today other than the conventional banking institutions. They offer a variety of financial solutions. For example, one can invest in the stock markets of any country, not just in the one’s own country, through certain funds offered by these new-generation non-banking financial institutions. In such situations, a financial planner is inevitable. Also there are independent financial planners who work as consultants. A financial planner should be well versed in financial and taxation laws and should have a thorough understanding of the intricacies of the financial sector.

Financial planners are one of the highest paid executives in financial sector today. In a single year, there has been an increase of around 25% percent in the salary of financial planning professionals. But the industry is experiencing a brief lull at present because of the sub-prime crisis in United States and the plummeting stock-market indices all over the globe. The average annual salary of a senior financial planner has come down to less than $80000/-. It was around $64000/- a year ago and touched $81000/- in January this year.

In the financial planning sector, there are many posts. Examples are given below (average salaries in United States in entry level are given in brackets): certified financial planner ($59000), personal financial advisor ($46000), financial planner ($47000), associate financial planner ($40000), administrative assistant ($30000), administrative manager ($37000), and executive assistant ($40000). As you can see, the salary varies significantly with the nature of the job. A fresher in the financial planning industry is likely to get a salary of around $37000 to $40000 in United States. Naturally, the salary will increase as the financial panning professional gains experience. The general trend is that there will not be a substantial increase in salary in the first four years. But once the person passes that four year mark and gains some experience, the salary hike shifts to top gear.

However, there has been criticism about the increasing salaries of financial planners. The financial sector has been undergoing a mini crisis in the last few months. But most financial planning executives are still drawing high salary. Some financial columnists are arguing that even at the time of crisis, the bank balance of the financial planners in fattening up, while bank balances of their customers are drying up.