In today’s era, it is essential to manage your finances well. Recently we were struck by the COVID 19 pandemic, and all the businesses were shut down at that moment. Those who are well off manage their living costs quite well and are not impacted much by the pandemic. But as usual, the middle class suffered the most. Thus, we should all manage our finances while keeping the future in mind. Those who know the same can manage it properly. But for those who are not, here comes the role of Financial Advisor. This piece of writing will cover information about Financial advisors.
Additionally, how much does a Financial Advisor make? This article will also help those students trying to be future Financial advisors. So, without any further ado. Let’s dive into the reading.
Who is a Financial Advisor?
This must be the very question that crossed your mind. Thus, to the reader’s knowledge, a financial advisor guides where, how, and when to invest. Or in different terms, we can express that financial advisors work closely with individuals, families, and businesses in formulating long-term yet sustainable fortune-building strategies. Advisors guide them and help them to achieve their financial goals. This whole procedure is done with a rigorous assessment of the party’s financial status, including analysis of investment opportunities and wandering the capital extension chances to source any funding or loan.
Why is there a need for a Financial Advisor?
You must be thinking about why to spend extra money to hire a financial advisor when you can get access to all the information from the internet. You may be right that there is plenty of information available on the internet, but how can you manage to get experience in the field? Moreover, advisors are specialized in providing financial advice to their customers based on your requirement and their skill or expertise. Additionally, you may be engaged in some other work which may or may not hamper the decision about any kind of investment. Thus, these financial advisors will work in your place and
- Understand your need and come up with the plan
- Moreover, before making any final plan, he will ask you about the purpose and need of the investment along with your future goals.
- He will bring financial expertise along with him.
- He will lay down the goals that are measurable, realistic, specific, time-bound, and achievable.
- A financial advisor helps you to choose the correct path that fits you financially.
- He will keep track of your investment performance and make amendments if needed.
Now, you have well understood the role of the financial advisor. It’s time to see how much a financial advisor makes. This section will give ideas about the salary on different levels. Moreover, you can easily make a decision whether you want to be a financial advisor in the future or not. Thus, read the next section carefully!!
How much does a Financial Advisor make?
To the reader’s knowledge, the salary of the advisor depends on various factors such as experience level, geographic location, skill set, etc. According to the report of PayScale, the annual compensation that a financial advisor gets on average is ₹627,776 /year ( Indian Residents). But, there is a sheer rise in the number when one advances his skill set along with experience. You can also expect bonuses and profit-sharing as a part of the job. Thus we can say
- An entry-level who has an experience of less than a year can earn ₹229,428/year( average)
- While a person with an experience of up to 4 years can make an average of ₹507,524/year
- Advisors whose experience range lies between 5-9 years can earn ₹828,164 per year.
- And a person whose experience is more than 10 years can expect ₹1,017,365 annually.
Note: These numbers are the base salaries of the financial advisors. You can expect that after adding allowances, bonuses, commission, income earned from profit-sharing, overtime, etc., one can make up to ₹2 million or 20 lakh per year.
I hope this piece of writing solved the confusion of your mind. Now, you can easily make a decision whether to become a financial advisor or not. But still, if you have any question that remains unanswered. Please let us know in the statement box. Till then, keep surfing for scholarly articles on our website!!