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What Factors Influence Financial Consultant Salaries?

Mary McMahon
By
Updated May 17, 2024
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Financial consultant salaries depend on the types of services offered, where the consultant works, and current market conditions. Qualifications also play a key role. People considering positions as financial consultants can look up databases to see what kind of pay people in similar positions receive to determine if an offer from a prospective employer is fair. It is also important to consider the role of benefits in a salary; base pay may be low, but access to benefits could make up for that.

The qualifications of a financial consultant are one of the most important factors in the amount of salary he or she can receive. People with advanced educational training usually earn more, a reflection of their increased training and experience. Additionally, the longer someone has been working in the industry, the higher the potential salary. Financial consultant salaries are higher for people with more experience because they can bring valuable skills to the table.

Working conditions are also important for financial consultant salaries. Financial consultants can work for banks and other financial institutions, brokers, government agencies, credit bureaus, and independent firms that focus on financial consulting services. People working for corporations tend to make the most money and can access more benefits. Government workers make less, but may have more job security. Financial consultant salaries can also be dependent on location, as areas with a high cost of living tend to pay more.

Current market conditions may play a role, depending on the structure of a consultant's salary. Some firms offer commissions, rewarding people for good financial advice by giving them increases when their clients make more money. In a good market, a financial consultant can earn a lot of commissions and make substantially more. In poor markets, even skilled consultants may have trouble guiding their clients, and could make less money. It may also be possible to access special bonuses in a bad market if a financial consultant helps a client beat the market and exceed expectations in terms of investment returns.

Financial consultant salaries are also influenced by the services a consultant makes available to his or her clients. Full-service consultants make more money than people offering individual counseling sessions or assistance on particular topics. The level of work can also be much higher for people with full-service companies, as they need to be available to their clients all the time. People who prefer more flexibility with working hours and schedules may want to opt for more basic services and slightly lower pay.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

By allenJo — On Nov 02, 2011

@NathanG - Of all the factors listed, I think where you work is the most important. If you work in New York for a big bank then you’ll make a lot more money than you would if you worked in Peoria for a smaller, local bank. Location is everything, not just in real estate but in employment.

Of course, with that increase in income comes a very high degree of stress. I don’t think I’m cut out for the face past of the big city life, so I might actually pass on some opportunities if I were a planner.

If you want to become a financial advisor I think you should study possible target markets in advance before embarking on that career. Doing so might help you to specialize a little too.

By NathanG — On Nov 01, 2011

@Charred - I’m surprised to hear that the government workers make less money. Government workers tend to make more money than private workers in just about every other discipline, from what I understand, often scoring astronomical salaries.

Perhaps there is less need for a financial analyst in the government sector because the government tends to spend more money than it saves. I’m being a little facetious of course, but that’s not too far from the truth.

By Charred — On Nov 01, 2011

The way I see it, the only variable that is really worthwhile in determining consulting salaries is your success rate.

If you’re in financial consulting, you should be able to point to a track record of accomplishments where your clients made a lot of money for taking your advice.

In that sense, the commission structure mentioned in the article is the ideal setup for such a consultant. It’s kind of like commission based sales, except the commissions here are deferred until some future point where the client can demonstrate he has made money.

That might not seem appealing to some people, but as a consumer, I’d never accept financial advice from anyone who couldn’t demonstrate a proven success rate. I can get financial advice on my own through reading books. If I want to pay someone for advice, I need something more than general knowledge.

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

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