If you’re young, good at managing money and ambitious, you may be on your way to a successful career as a certified financial planner—but only if you’re in the right place at the right time, according to SmartAsset, a New York City-based personal finance technology company.
Older workers remain a majority in the financial advice industry. People age 55 to 64 represent 29% of the workforce, while those age 35 and younger account for just 10%. But the U.S. Bureau of Labor Statistics projects a 4% growth in the employment rate of personal financial advisors over the next decade.
Financial advisors last year earned an average of almost $119,300—more than two times the average annual earnings for all U.S. workers.
A career as a financial advisor also offers certain perks that other jobs do not, including a flexible work schedule. Moreover, financial advisors are able to tailor their practices to their strengths or interests. It also helps if those smart, young professionals open up shop in one of the country’s top 10 best places to do business as a financial advisor, SmartAsset says.
SmartAsset compared 100 of the largest U.S. cities across five metrics: the average financial advisor earnings; rent as a percentage of the average financial advisor’s earnings; the percentage of households in the city earning $200,000 or more; the percentage of the city’s population nearing retirement (aged 45-64); and the financial advisor search volume, which relied on data from SmartAsset’s financial advisor matching tool. The resulting average was used to rank each city in the study from 0 to 100, with 100 being the best score possible.
Here, in ascending order, are the top 10 best cities for young financial advisors starting their careers.
10. Chesapeake, Virginia
Virginia is not just a great place for lovers. It's also a great place to start a career as a young financial advisor. The average financial advisor earns $154,500 in Chesapeake and the average rent accounts for just 9.72% of earnings. A quarter of the local populace (26.1%) is between the ages of 45 and 64 and nearing retirement. Total Score: 80.05.
9. Portland, Oregon
Unconventional Portland is famous for its youthful counterculture, but young advisors will find plenty of people nearing retirement: Nearly a quarter of residents (24.5%) are between the ages of 45 and 64. Financial advisors in Portland earn an average of $117,800 per year. The median monthly rent is nearly $1,300, or 13% of their earnings. Total Score: 81.31.
8. Fremont, California
Many upwardly mobile families and young professionals live in Fremont, close to Silicon Valley. While the city is relatively small, 31.1% of households earned $200,000 or more, and 27.4% of residents nearing the retirement years (from age 45 to 64), are in need of financial advice. Total Score: 83.33.
6. Virginia Beach, Virginia (Tie)
A hub of international commerce, more than half (54%) of the people working in Virginia Beach also live there. Financial advisors earn an average of $154,500, and the U.S. Census Bureau reports that 24.7% of the city's residents are between age 45 and 64 and nearing retirement. Total Score: 83.59.
6. Miami, Florida (Tie)
Nicknamed the capital of Latin America, Miami is an economic powerhouse offering young professionals nowhere to go but up. SmartAsset found that residents are looking for financial advisors 2.15 times more than in any other city in its study, and close to 27% of them are age 45 to 64. Total Score: 83.59.
5. Oakland, California
Once the haunt of writer Jack London and baseball greats Reggie Jackson and Catfish Hunter, Oakland these days is a bustling center of commerce and industry, as well as a major West Coast port city. Financial advisors in Oakland earn on average about $157,700 a year, and 15% of households earn in excess of $200,000 annually. Total Score: 83.84.
4. Charlotte, North Carolina
Charlotte is the second-largest banking center in the United States behind New York City, offering young professionals ample opportunity to make a good living. Financial advisors in Charlotte earn an average of $146,410 yearly, with rent costing them just 9% of their earnings. A quarter of the population (24%) is aged 45-64 and nearing retirement. Total Score: 91.41.
3. Chicago, Illinois
Chicago is an international hub of finance, commerce and industry, and a magnet for ambitious young professionals. Financial advisors earn an average of almost $150,000 a year there, while paying a modest median rent of $1,100 – less than 9% of their salary. Total Score: 91.92.
2. San Francisco, California
San Francisco workers earn some of the highest salaries in the world, while also paying some of the highest median rents. Financial advisors earn an average of more than $157,700 a year, but rents will set them back 14.30% of their salary. Total Score: 92.42.
1. New York, New York
Financial advisors who make it here can make it anywhere, with average yearly earnings of $165,800 - the highest in the study. And many equally high-earning residents need their services, with 11.4% of households earning $200,000 or more annually. Those residents are searching for financial advisors 11 times more than average. Total Score: 100.
