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Salary, Wages, Pay: Financial Analysts and Personal Financial Advisors




Median annual earnings of financial analysts were $57,100 in 2002. The middle 50 percent earned between $43,660 and $76,620. The lowest 10 percent earned less than $34,570, and the highest 10 percent earned more than $108,060. Median annual earnings in the industries employing the largest numbers of financial analysts in 2002 were as follows:

Other financial investment activities $74,860
Management of companies and enterprises 60,670
Securities and commodity contracts intermediation and brokerage 58,540
Nondepository credit intermediation 51,700
Depository credit intermediation 51,570

Median annual earnings of personal financial advisors were $56,680 in 2002. The middle 50 percent earned between $36,180 and $100,540. Median annual earnings in the industries employing the largest number of personal financial advisors in 2002 were as follows:

Other financial investment activities $74,260
Securities and commodity contracts intermediation and brokerage 68,110
Depository credit intermediation 51,030

Many financial analysts receive a bonus in addition to their salary, and the bonus can add substantially to their earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment. Personal financial advisors who work for financial services firms are generally paid a salary plus bonus. Advisors who work for financial-planning firms or who are self-employed either charge hourly fees for their services or charge one set fee for a comprehensive plan, based on its complexity. Advisors who manage a client’s assets usually charge a percentage of those assets. A majority of advisors receive commissions for financial products they sell, in addition to charging a fee.