How To Become a Financial Advisor: Salary & Career Paths for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

Share

As more individuals seek personalized financial advice to secure their financial future, many aspiring professionals find themselves uncertain about how to enter the growing field of financial advising. The increasing demand for expert guidance, fueled by the projected 17% growth in financial advisor employment from 2023 to 2033, has led to a surge of opportunities. However, without a clear understanding of the necessary qualifications, certifications, and career paths, many are unsure how to navigate this thriving industry.

This article, prepared by experts in career planning, will guide you through the necessary steps to become a financial advisor, explore salary expectations, and outline various career advancement opportunities. With this information, you'll have the clarity you need to take the next step toward a successful career in financial advising.

Key Things You Should Know About Becoming a Financial Advisor

• Projected Job Outlook - Employment for financial advisors is expected to grow 17% from 2023 to 2033, driven by rising demand for financial planning services.
• Education and Training - A bachelor’s degree in finance, economics, business, or accounting is required, with additional certifications and licenses necessary.
• Career Advancement Opportunities - Financial advisors can pursue various career paths, including financial analyst, investment banker, or wealth manager, each offering different responsibilities and salary ranges.
• Employment Across Industries - Financial advisors are employed across various industries, with the highest concentration in securities, commodities, and financial investment firms.
• Different Specializations - Advisors can specialize in investment management, tax advising, estate planning, insurance, and retirement planning, to meet client-specific needs.

Table of Contents

1. What is a financial advisor?
2. How to Become a Financial Advisor in 2025?
3. What does a financial advisor do?
4. How much can you earn as a financial advisor?
5. What are the career paths for financial advisors?
6. What are the specializations in financial advising?
7. What are the costs associated with becoming a financial advisor?
8. Can an online business degree enhance a financial advising career?
9. Can pursuing advanced education propel my financial advising career?
10. What emerging trends are shaping the future of financial advising?
11. What challenges do financial advisors face and how can they overcome them?
12. Can an online MBA enhance my financial advising career?
13. How can project management skills benefit my financial advisory career?
14. What are the essential skills required to be a financial advisor?
15. What certifications and training programs are required for financial advisors?
16. What is the job outlook for financial advisors?
17. Other Things You Should Know About Becoming a Financial Advisor

What is a financial advisor?

A financial advisor is a professional who provides expert advice and guidance on managing personal finances, including investments, retirement planning, tax strategies, and wealth management. They help individuals and organizations make informed decisions to achieve their financial goals, such as saving for retirement, buying a home, or planning for future financial security. Financial advisors often work closely with clients to develop personalized plans that align with their unique financial situations and objectives.

As of 2025, there are 272,190 financial advisors employed in the United States. These professionals are 61% more likely to work at private companies compared to public companies. Industries with the highest levels of employment for personal financial advisors include securities, commodity contracts, and other financial investments and related activities. As financial markets continue to change, the need for skilled financial advisors remains strong, with many opportunities in various industries for those entering the profession.

How to Become a Financial Advisor in 2025?

Becoming a financial advisor in 2025 requires a combination of education, certification, experience, and professional skills. Here are five essential steps to help you start your financial advising career:

Step 1: Earn a Relevant Degree

To become a financial advisor, you typically need a bachelor’s degree in a relevant field. Degrees in finance, economics, business, or accounting are most common, as they provide a strong foundation in financial principles, investment strategies, and economic theory. Recent data shows that most financial advisors hold a Bachelor’s degree, with 73.8% of them having this level of education. 

Pursuing a relevant major helps you build the foundational knowledge that will benefit your career. Here are some common finance-related majors:

• Business (32%)
• Finance (19%)
• Accounting (7%)
• Economics (7%)
• Other Majors (35%)

Additionally, accelerated degree programs are available for those looking to fast-track their education. Many universities offer the easiest online degree options, including accelerated certification programs that allow you to enter the workforce more quickly.

Step 2: Gain Practical Experience

Gaining practical experience is crucial to becoming a successful financial advisor. Many aspiring advisors start by working in entry-level positions such as a financial analyst or junior advisor. This hands-on experience allows you to develop essential skills in investment management, client communication, and financial planning. Internships and on-the-job training can also provide valuable exposure to the industry, helping you build a strong foundation for your advisory career.

Step 3: Obtain Required Certifications and Licenses

​Obtaining the appropriate certifications and licenses is required to legally provide financial advice and adhere to regulatory standards. These credentials ensure compliance with federal and state regulations while affirming your commitment to professional standards.​

Here are the key licenses that financial advisors in the U.S. typically need:

• Series 6 License: Allows the sale of mutual funds, variable annuities, and insurance premiums. ​
• Series 7 License: Enables the sale of a broader range of securities, including stocks and bonds. ​
• Series 63 License: Authorizes advisors to operate within specific states, covering state laws and regulations. ​
• Series 65 License: Required for investment advisor representatives, permitting the offering of investment advice for a fee. ​
• Series 66 License: Combines elements of the Series 63 and Series 65, streamlining the process for advisors who hold a Series 7 license. ​
• Registered Investment Adviser (RIA) Registration: Necessary for firms or individuals offering investment advice, registered either with the Securities and Exchange Commission (SEC) or state regulators, depending on assets under management. ​

Licensing requirements can vary based on the specific services you intend to offer and the states in which you plan to operate. Additionally, selecting a specialization helps determine your professional path, as different types of clients may require different licenses, certifications, and areas of expertise. 

Step 4: Build a Client Base and Network

Building a client base and network is crucial for a financial advisor’s success. Start by leveraging personal connections, such as friends, family, and colleagues, to gain initial clients. Attend networking events, conferences, and seminars to meet potential clients and establish relationships within the industry. Utilize social media platforms and create an online presence to reach a broader audience. Additionally, offering referrals and building trust through excellent service will help expand your client base over time.

What does a financial advisor do?

A financial advisor helps individuals make informed decisions about their finances. They perform a range of duties to support clients in achieving their financial goals. Here are the key responsibilities: 

• Meeting Clients and Assessing Goals: Financial advisors meet with clients to understand their financial situation and future objectives. They evaluate income, expenses, assets, and liabilities to create personalized financial strategies.
• Investment Planning and Management: Advisors recommend investment opportunities, such as stocks, bonds, mutual funds, and real estate, based on the client's risk tolerance and financial goals. They may also actively manage portfolios or guide asset allocation.
• Ongoing Financial Monitoring: Advisors continuously monitor clients' financial plans, adjusting them as necessary due to market changes or personal circumstances such as marriage, childbirth, or career shifts.
• Regulatory Compliance and Licensing: Many financial advisors hold licenses to buy and sell investment products. They ensure compliance with industry regulations and ethical guidelines while providing fiduciary responsibility to clients.
• Retirement, Estate, and Tax Planning: Financial advisors help clients save for retirement, minimize taxes, and structure estates for smooth wealth transfer. They also recommend insurance products to protect against financial risks.

How much can you earn as a financial advisor?

As of 2025, the average annual salary for financial advisors in the United States is $78,815. Total compensation, including commissions and bonuses, ranges from $123,000 to $229,000 per year. 

Factors like experience, education, and industry specialization impact salary. Entry-level financial advisors earn an average salary of $56,967, while those with 15+ years of experience earn an average of $181,127 per year. Some advisors pursue the quickest masters degree online to advance their careers and increase earning potential. The financial advising field offers varied compensation depending on the industry in which an advisor works. The highest-paying industries include:

Financial advisors in high-cost states earn more than those in lower-cost regions. In Washington, the average salary is $115,677, reflecting the state's strong economy and demand for wealth management services. Areas with a lower demand for financial services generally offer lower salaries.

What are the career paths for financial advisors?

​Financial advisors have several career paths to choose from, each offering unique opportunities and responsibilities. These paths allow professionals to specialize and advance in various areas of financial services.

1. Financial Analyst

A financial analyst assesses data to help guide investment choices and business decisions. They provide reports, forecasts, and recommend strategies. This role requires strong attention to detail and a deep understanding of financial trends. Analysts focus on analyzing numbers, market behavior, and risk factors to make informed financial decisions. It's a role that demands expertise in financial models and data interpretation.

Median salary: $88,111 per year.

2. Investment Banker

Investment bankers help clients raise funds and advise on financial transactions. They structure deals, help with mergers, and manage stock offerings. This career path demands an in-depth understanding of markets, regulations, and financial strategies. Bankers often work long hours due to the complex nature of their work. They provide critical financial advice and lead efforts in capital raising for large-scale projects.

Median salary: $118,333 per year.

3. Wealth Manager

Wealth managers offer personalized financial services to high-net-worth clients. They create investment strategies, manage portfolios, and help with tax planning. This role requires a deep understanding of investments, estate planning, and financial law. Wealth managers build strong relationships with clients to understand their financial needs. They aim to preserve and grow wealth while minimizing risk for affluent individuals or families.

Median salary: $59,525 per year.

4. Certified Public Accountant (CPA)

A CPA offers tax, audit, and consulting services to individuals and businesses. They prepare financial statements, file tax returns, and ensure clients comply with tax laws. This path requires passing the CPA exam and gaining practical experience. They also provide expert advice on managing finances, budgeting, and tax planning for individuals and companies. This path requires passing the CPA exam and gaining practical experience to become a CPA.

Median salary: $91,980 per year.

5. Compliance Officer

Compliance officers ensure that financial firms follow legal and ethical standards. They monitor policies, conduct audits, and ensure regulatory compliance. This role is crucial for protecting the firm’s integrity and reputation. Officers track regulatory changes and make adjustments to internal processes. They work to minimize risks and prevent violations of financial laws, ensuring that businesses operate within legal boundaries and maintain trust.

Median salary: $98,949 per year.

What are the specializations in financial advising?

Specializations in financial advising include areas where advisors focus their expertise to help clients with specific financial needs. Here are the key specializations in financial advising:

• Investment Management: Focuses on managing clients' investment portfolios and providing guidance on asset allocation and diversification.
• Retirement Planning: Helps clients plan for retirement by developing strategies to accumulate funds and manage withdrawals.
• Tax Advising: Provides advice on tax-efficient investment strategies and tax liability minimization.
• Estate Planning: Assists clients in organizing their affairs to ensure assets are distributed according to their wishes after death.
• Insurance Planning: Evaluates clients' insurance needs and recommends appropriate coverage for life, health, and property.
• Education Planning: Helps clients save and invest for educational expenses, including tuition and related costs.
• Real Estate Planning: Offers expertise in property investments, guiding clients through real estate transactions and portfolio management. Pursuing a real estate bachelor’s degree can advance this specialization, providing deeper knowledge of market trends and property valuation.
• Financial Planning: Provides comprehensive services to integrate various financial aspects and create holistic financial plans.

What are the costs associated with becoming a financial advisor?

​Becoming a financial advisor in the United States involves several financial commitments, including educational expenses, licensing fees, and ongoing professional development costs. A bachelor's degree is typically required, with tuition varying by institution. Tuition fees vary widely depending on the institution, with annual costs ranging from $10,000 to $50,000. Aspiring advisors must obtain licenses such as the Series 7 and Series 66, which together can cost between $1,100 and $1,800, covering study materials, exam fees, and state registration fees. ​

Additional costs include purchasing financial planning software, which may range from $100 to $300 per month after an initial complimentary period, and technology fees between $30 and $150 monthly. Professional certifications require coursework and examinations, with costs starting at $925 if prior financial designations are held. Overall, initial expenses can total approximately $15,000 to $60,000, with ongoing monthly costs for software and technology.

Can an online business degree enhance a financial advising career?

A comprehensive business education can complement technical financial skills and offer a broader perspective on management, strategy, and entrepreneurship. This background reinforces analytical and decision-making abilities while fostering leadership and operational insights crucial for client and firm growth. Finance professionals who supplement their qualifications with advanced business studies often gain a competitive edge in understanding market dynamics and running efficient practices. For those seeking a cost-effective option, consider pursuing an affordable online business administration degree to further enhance their career trajectory.

Can pursuing advanced education propel my financial advising career?

Advanced education can provide financial advisors with deeper analytical skills, specialized financial modeling techniques, and strategic decision-making abilities that complement on-the-job experience. Enrolling in flexible online programs, such as a masters of science in finance online, can broaden expertise while accommodating professional schedules. This targeted education not only enhances industry credibility but also positions advisors to leverage emerging financial technologies and regulatory changes for improved client outcomes and competitive compensation.

What emerging trends are shaping the future of financial advising?

The financial advising profession is evolving as digital transformation and technological advancements reshape service delivery and client interactions. Enhanced data analytics, artificial intelligence, and cloud-based platforms are enabling advisors to offer more personalized strategies and streamline operational processes while ensuring robust cybersecurity measures. Additionally, staying updated on evolving regulatory standards and compliance requirements is essential for mitigating risks and maintaining trust. Continuous professional development, including pursuing advanced education options like DBA programs online, positions financial advisors to leverage these trends competitively and adapt to a swiftly changing marketplace.

What challenges do financial advisors face and how can they overcome them?

Financial advisors encounter multifaceted challenges including adapting to evolving regulatory standards, differentiating their services in a crowded market, and integrating new technologies for enhanced service delivery. Addressing these issues requires proactive measures such as investing in continuous education, seeking targeted mentorship, and leveraging digital tools that streamline client communication and portfolio management. Pursuing advanced qualifications, like an online MBA 1 year, can further equip advisors with strategic business and leadership competencies necessary to navigate market uncertainties and sustain long-term growth.

Can an online MBA enhance my financial advising career?

Advanced business education can equip financial advisors with strategic management and leadership competencies that complement technical expertise. An online MBA expands skills in organizational strategy, operational efficiency, and data-driven decision-making, enabling advisors to evaluate market trends and implement innovative business solutions. Moreover, these advanced studies foster a comprehensive understanding of risk management and regulatory frameworks, which are critical for sustained client trust and competitive positioning. For candidates considering cost-effective programs, investing in an affordable AACSB online MBA degree programs can serve as a valuable asset in advancing their advisory careers.

How can project management skills benefit my financial advisory career?

Financial advisory roles increasingly demand structured project management to enhance operational efficiency and streamline client service delivery. Integrating project management techniques helps advisors coordinate complex financial plans, manage client portfolios during market volatility, and execute multi-step strategies with precision. Moreover, advisors equipped with project management expertise can better mitigate risks, allocate resources, and maintain quality control across client projects. For financial professionals seeking to expand their competencies in this area, exploring the quickest bachelor's degree in project management online can be a strategic move to further bolster their advisory skills.

What are the essential skills required to be a financial advisor?

Becoming a successful financial advisor requires a combination of technical expertise and strong interpersonal skills. These skills help ensure advisors can provide valuable financial advice and build lasting relationships with clients.

Technical Skills Required for a Financial Advisor

Financial advisors must possess a strong technical skill set to make informed decisions and provide valuable guidance to clients. Here are the key technical skills needed in the field:

• Financial Analysis: Advisors need to analyze financial data, such as income statements and balance sheets, to assess a client's financial health and make informed decisions.
• Investment Knowledge: A strong grasp of investment vehicles like stocks, bonds, and mutual funds is crucial for advising clients on where to allocate their funds.
• Tax Planning: Advisors help clients understand tax implications and develop strategies to minimize tax burdens while growing wealth.
• Risk Management: Financial advisors assess the risks associated with investments and insurance to ensure clients’ portfolios remain balanced and protected.
• Regulatory Knowledge: Advisors must stay updated on financial laws and regulations to ensure compliance and safeguard their clients’ interests.

General Skills Required for a Financial Advisor

In addition to technical expertise, financial advisors must also possess strong general skills to engage with clients effectively. These are essential for building trust and delivering personalized advice:

• Communication: Clear and concise communication is essential to explaining complex financial concepts in a way that clients can easily understand.
• Problem-Solving: Advisors must quickly identify problems in clients' financial situations and propose effective solutions to help them meet their goals.
• Empathy: Showing empathy allows financial advisors to understand their clients' unique financial concerns and build stronger, more trusting relationships.
• Sales and Negotiation: Financial advisors often need to sell products or services, making negotiation and persuasion skills key to meeting clients' needs.
• Time Management: Advisors manage multiple clients and tasks, requiring strong time management skills to stay organized and efficient.

What certifications and training programs are available for financial advisors?

Specializations in financial advising allow professionals to advance their careers by focusing on specific financial needs and offering expert advice in those areas. Here are six notable certifications and training programs:​

• Certified Financial Planner (CFP®): Offered by the CFP Board, this certification requires passing a comprehensive exam, completing financial planning coursework, and gaining industry experience.
• Chartered Financial Analyst (CFA): Administered by the CFA Institute, this credential focuses on investment management. Candidates must pass three exam levels covering ethics, investment analysis, and portfolio management, plus accumulate four years of relevant experience.
• Chartered Financial Consultant (ChFC®): Offered by The American College of Financial Services, this certification covers risk management, estate planning, and retirement planning, requiring coursework and professional experience.
• Accredited Investment Fiduciary (AIF®): Provided by Fi360, the AIF® focuses on fiduciary responsibility and investment management. Candidates must complete formal training, pass an exam, and adhere to ethical standards.
• Chartered Alternative Investment Analyst (CAIA): Offered by the CAIA Association, this program specializes in alternative investments like hedge funds and private equity, requiring two exam levels and membership compliance.
• Certified Public Accountant (CPA): It requires a bachelor's degree, the Uniform CPA Exam, and state-specific experience. CPAs offer tax planning and can specialize in accounting specializations like auditing and forensic accounting.

What is the job outlook for financial advisors?

The employment for financial advisors is projected to grow 17% from 2023 to 2033, significantly higher than the average for all occupations. This growth is driven by an increasing need for financial planning services, with about 27,000 openings expected annually during this period. The market for financial advisory services is predicted to reach $146.8 billion by 2032, with a steady growth rate of 6% from 2023 to 2029.

Additionally, the global robo-advisory market is expected to grow at a CAGR of 30.5% between 2024 and 2030. Robo-advisors offer virtual and simplified wealth management services, which are gaining popularity due to their cost-effectiveness and accessibility. However, only about 40% of investors rely on robo-advisors for dependable advice, showing that traditional financial advisors still hold a significant role in the market.

Here’s What Graduates Have to Say About Becoming a Financial Advisor

Transitioning from a corporate job to financial advising was the right decision for me. The earning potential is high, but what truly excites me is the ability to educate clients and guide them toward financial independence. Seeing my hard work translate into their success is what keeps me motivated. — Jason

I was nervous about starting in finance with no prior experience, but the right training and mentorship made all the difference. The career offers stability, independence, and the chance to constantly learn in a growing industry. Now, I can confidently say that becoming a financial advisor was worth the effort. — Marine

Starting my career as a financial advisor wasn’t easy, but the growth opportunities and income potential made it all worthwhile. The first year was all about learning, building client trust, understanding markets, and refining my financial planning skills. Now, I help people secure their futures while enjoying a flexible career with unlimited earning potential. — Richard

Key Findings

• As of 2025, there are 272,190 financial advisors working in the United States, with the majority (61%) employed by private companies rather than public firms.
• The average annual salary for a financial advisor in 2025 is $78,815, with total compensation including bonuses and commissions ranging from $123,000 to $229,000 per year.
• Approximately 27,000 job openings for financial advisors are anticipated annually from 2023 to 2033, reflecting growing demand in the industry.
• The costs associated with becoming a financial advisor can total between $15,000 to $60,000, including tuition for a relevant bachelor’s degree, licensing fees, and exam costs for certifications.
• The financial advisory services market is projected to reach $146.8 billion by 2032, with a steady growth rate of 6% from 2023 to 2029.

Other Things You Should Know About Becoming a Financial Advisor

What is the difference between a financial advisor and a financial planner?

A financial advisor offers investment advice and may include services like insurance or banking, while a financial planner provides comprehensive strategies for long-term financial goals, including budgeting and retirement planning. Not all financial advisors are financial planners, the latter often hold certifications like the certified financial planner (CFP) designation, indicating a higher level of expertise in holistic financial planning. ​

How long does it take to get licensed as a financial advisor?

The time to become a licensed financial advisor varies based on the certifications pursued. For instance, completing the coursework typically takes 12 to 18 months. After coursework, candidates must pass the specific exam, which is a comprehensive test of financial planning knowledge. Additionally, obtaining other licenses, such as the Series 65, requires passing specific exams, which may necessitate additional study time. 

Can you become a financial advisor without a finance background?

Yes, it's possible to become a financial advisor without a finance background. While many advisors have degrees in finance, business, or economics, others enter the field by obtaining relevant certifications and licenses. For example, passing the Series 65 exam allows individuals to act as investment advisors, and some firms offer training programs for those new to the industry. However, building a client base may be more challenging without a finance-related background.​

Can financial advisors work remotely?

Yes, many financial advisors can work remotely, utilizing technology to serve clients effectively. Remote positions are available, with companies offering virtual financial advisor roles. Working from home as an independent financial advisor has benefits, including greater control over time and workspace, and the ability to serve clients via phone or video conferencing. However, the feasibility of remote work depends on the employer's policies and the advisor's client base.​

References:

• Bureau of Labor Statistics. (n.d.). Occupational employment and wages, May 2023: Financial analysts (13-2052). Retrieved from BLS.
• Financial Industry Regulatory Authority. (n.d.). Series 6 qualification exam. Retrieved from FINRA.
• Financial Industry Regulatory Authority. (n.d.). Series 7 qualification exam. Retrieved from FINRA.
• Financial Industry Regulatory Authority. (n.d.). Series 63 qualification exam. Retrieved from FINRA.
• Financial Industry Regulatory Authority. (n.d.). Series 65 qualification exam. Retrieved from FINRA.
• Financial Industry Regulatory Authority. (n.d.). Series 66 qualification exam. Retrieved from FINRA.
• Glassdoor. (n.d.). Financial advisor salary. Retrieved from Glassdoor.
• Grand View Research. (2025). Robo advisory market report. Retrieved from Grand View Research.
• GM Insights. (2025). Financial advisory services market. Retrieved from GM Insights.
• Mordor Intelligence. (2025). Financial advisory services market. Retrieved from Mordor Intelligence.
• ZipRecruiter. (n.d.). Certified public accountant salary. Retrieved from ZipRecruiter.
• ZipRecruiter. (n.d.). Compliance officer salary. Retrieved from ZipRecruiter.
• ZipRecruiter. (n.d.). Investment banker salary. Retrieved from ZipRecruiter.
• ZipRecruiter. (n.d.). Wealth manager salary. Retrieved from ZipRecruiter.
• ZipRecruiter. (n.d.). Financial analyst salary. Retrieved from ZipRecruiter.
• ZipRecruiter. (n.d.). What is the average financial advisor salary by state. Retrieved from ZipRecruiter.
• Zippia. (n.d.). What does a finance advisor do? Retrieved from Zippia.