When it comes to finding a high-paying career as a financial advisor, big cities don’t always fulfill big dreams, according to a new ranking by SmartAsset.
The New York City-based financial technology company compared 50 of the largest metropolitan areas nationwide across four metrics: average financial advisor earnings; two-year change in financial advisor pay; financial advisor pay relative to average pay; and housing costs as a percentage of average financial advisor pay.
SmartAsset gave equal weight to all four metrics used to rank each city in the study, then used that average to determine a final score. The metro area with the highest average ranking received a score of 100, while the one with the lowest received a score of 0.
Although financial advisors working in New York City earned the study’s highest average salary of $169,850, equally high-priced housing costs were responsible for shutting America’s largest city out of the study’s top 10. Although financial advisors nationwide typically earn more than double what the average worker in other fields earns, that is not the case in some of the largest cities on the West Coast, such as Los Angeles and San Jose, Calif., locking them out of the study’s top 10, too.
Here, in ascending order, are SmartAsset's top 10 best-paying places for financial advisors.
10. Indianapolis-Carmel-Anderson, Ind.
Indianapolis is the state's most populous city, giving advisors plenty of opportunities to prosper. In 2020, advisors working in the area earned an average pay of $125,550—4.06% higher than what they earned in 2018—and paid the sixth-lowest housing costs as a percentage of average advisor earnings (9.41%).
8. Cincinnati, Ohio-Ky.-Ind. (tie)
Cincinnati is Ohio’s largest metropolitan area and a magnet for financial advisors in search of a highly-paid position. The average financial advisor pay rose 17.95% between 2018 and 2020, increasing average annual earnings to $121,150, the 15th highest of the study. Housing will cost an advisor almost 10% of their paycheck.
8. Charlotte-Concord-Gastonia, N.C.-S.C. (tie)
The Charlotte metro area is one of the largest financial hubs in the nation. On average, financial advisors working there earn $146,650, while housing will cost them 9.01% of their paycheck, the fifth-lowest of the study. The average advisor pay is 2.65 times higher than the average worker’s salary.
7. Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
The Chicago metropolitan area, known as Chicagoland, is home to hundreds of corporate C-suite execs looking for advisors. With an average pay of $145,890, advisors earn 2.42 times the average worker’s salary, and housing costs make up less than 11% of their average annual salary.
6. New Orleans-Metairie, La.
Greater New Orleans is a major hub of oil and gas production. From 2018 to 2020, average advisor earnings grew 45.92%, while housing costs will only set you back an average of 8.24% of your pay.
5. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
The city is America’s fourth-largest banking center. In 2020, advisors earned an average salary of $161,020, an increase of more than 60% over 2018’s $100,400. That goes along with the low cost of housing, at 9.77% of the average advisor pay.
4. Virginia Beach-Norfolk-Newport News, Va.-N.C.
Known as Hampton Roads, this metropolitan area has numerous U.S. military installations staffed with highly-paid federal employees looking for a good wealth manager. Advisors earn an average salary of $158,860, an 25.76% higher than 2018, and 3.05 times higher than the average worker earns. Housing will set you back 9.59% of average pay.
3. Birmingham-Hoover, Ala.
With a diversified economy, this metropolitan area boasts major employers in banking and finance, heavy industry, and higher education. The average advisor pay is $153,070—three times higher than the average earnings for all other workers—and you’ll pay an average housing cost of just 7.31% of pay.
1. Richmond, Va. (tie)
Financial advisors in Richmond earn an average of $160,670, 2.89 times greater than the average worker’s paycheck, and housing is a bargain at only 8.94% of your pay.
1. Pittsburgh, Pa. (tie)
Advisors in Pittsburgh earn an average pay of $160,350, up 20.93% over 2018. The average housing cost will take a modest bite of just 6.54% out of your pay. Total Score: 100.
The study can be viewed here.