When selecting a Financial Advisor Company, there are several important factors to consider. These factors include a recurring revenue model, size and training capabilities, and room for growth. Financial advisor companies have a wide range of fees, so you should determine how each one will work for you. Fee-only financial advisors are the most unbiased and objective advisors, while fee-based advisors may still be biased towards their employer, which may affect their advice and recommendations.
The first factor to consider is the level of advice you need from a financial planner. Some firms are purely investment-focused, while others focus on other aspects of a person’s financial life. For instance, a financial planning firm might focus on insurance needs, or even how much to save in order to avoid debt.
Another important factor to consider is the level of compensation. Financial advisors at Morgan Stanley, for example, earn an average of $69,113 per year. Their benefits package includes health insurance, paid holidays, tuition assistance, and employee assistance programs. While some employees report a lack of work-life balance, most praise the firm’s friendly work environment and growth opportunities.
While smaller advisory firms may have less revenue, they can still be lucrative. A small financial advisor who works at a firm with $50 million in assets can earn $30k in revenue, and even hire a part-time intern to help them. But the largest firms tend to pay slightly higher wages and are able to recruit the best and brightest.