Fledgling financial advisors have a lot to choose from when considering where to start their careerrs, according to a new report.
While the U.S. Bureau of Labor Statistics (BLS) reports that almost one in 10 financial advisors are based in the New York-Newark-Jersey City Metropolitan Statistical Area (MSA), finance website SmartAsset has issued a report that shows that there are other options for young financial professionals besides the Big Apple.
In the 2021 edition of its annual study, the New York City-based company compared 100 of the largest U.S. cities across five metrics: average financial advisor earnings; rent as a percentage of average financial advisor earnings; advisor search volume relative to population, as calculated by SmartAsset's financial advisor matching tool; percentage of households earning $200,000 or more; and the percentage of the population nearing retirement between ages 45-64.
Each city included in the study was ranked in every metric, and that city’s average ranking was used to calculate a final score of 0 to 100, with 100 being the best ranking and 0 being the worst.
Here, in ascending order, are SmartAsset's top 10 best cities for young financial advisors starting their career in 2021.
9. Fremont, Calif. (tie)
Fremont, a stone’s throw from Silicon Valley, is home to tech tycoons in need of young advisors. Financial advisors earn an average annual salary of $155,960, but pay nearly a fifth of it (19.77%) on rent. Nearly a third of all households (31%) earn an average of $200,000 or more a year, and 27.5% of them are nearing retirement. Total Score: 93.33.
9. St. Paul, Minn. (tie)
Financial advisors earn an average annual salary of $161,020 and pay just 7.46% of it on rent. While a scant 6.7% of all households earn an average of $200,000 or more, 21.5% of them are nearing retirement. Total Score: 93.33.
8. Spokane, Wash.
Financial advisors earn an average annual salary of $138,570, and their rent costs just 7.73% of it. Online search rates are 1.17 times higher than the average, but only 4.7% of all households earn $200,000 or more per year. However, nearly a quarter of them (24.8%) are nearing retirement. Total Score: 94.04.
6. Virginia Beach, Va. (tie)
Virginia Beach is a hub of international commerce located in the Hampton Roads MSA, where CEOs need wealth management services. Financial advisors earn an average annual salary of $158,860, and pay just 10.30% of it on rent. Although just 7.6% of all households earn $200,000 or more per year, 24.5% of them are nearing retirement. Total Score: 94.39.
6. San Francisco (tie)
San Francisco is the cultural, commercial and financial heartbeat of Northern California. Financial advisors earn an average annual salary of $155,960, but pay 15.07% of it on rent. Almost a third (30.7%) of all households earn $200,000 or more per year, and 24.3% of them are nearing retirement. Financial advisors are searched 1.11 times more often than the average across all cities in the study. Total Score: 94.39.
5. Minneapolis
The Twin Cities are the second-largest economic center in the Midwest, and a magnet for fledgling advisors. Financial advisors earn an average salary of $161,020, and rent costs only 8% of it. Financial advisors are in demand; as Internet searches for them are 2.18 times higher than elsewhere. Just 8.9% of all households earn $200,000 or more per year, but 19.6% of them are nearing retirement. Total Score: 95.09.
4. Portland, Ore.
Young advisors looking for new business can find it in Portland’s Silicon Forest, where tech execs helm the more than 1,200 companies clustered there. Financial advisors earn an average annual salary of $127,980, and rent will cost them 12.30% of it. Only 11% of all households earn $200,000 or more per year, but 24.1% of them are nearing retirement. Residents search for financial advisors 1.40 times more often than elsewhere. Total Score: 95.44.
3. New Orleans
Financial advisors earn an average annual salary of $141,630, and pay a nominal 9.56% of it in rent. While just 7.7% of all households earn $200,000 or more per year, 24.8% of them are nearing retirement. Total Score: 96.49.
2. Richmond, Va.
Financial advisors earn an average annual salary of $160,670, and they pay only 8.05% of it on rent. Although just 7.1% of all households earn $200,000 or more per year, 22.6% of them are nearing retirement. Total Score: 97.89.
1. Chesapeake, Va.
Chesapeake’s biggest employers are municipal and school government. Financial advisors earn an average annual salary of $158,860, and rent will cost them 9.25% of it. Only 7.1% of all households earn $200,000 or more per year, but 26.2% of them are nearing retirement. Total Score: 100.
The full report can be viewed here.
