Financial Planners

There are several methods of compensation for financial planners, including:

• Fee-only, which means that compensation is earned entirely from fees from consultation, plan development, or investment management. These fees may be charged on an hourly or project basis, depending on clients' needs, or on a percentage of assets under management.
• Commission-only compensation, which is received from the sale of financial products that clients agree to purchase to implement financial planning recommendations. There is no charge for advice or preparation of the financial plan.
• Fee-offset, which means that compensation received in the form of commission from the sale of financial products is offset against fees charged for the planning process.
• Combination fee/commission is a fee charged for consultation, advice, and financial plan preparation on an hourly, project, or percentage basis. Planners might also receive commissions from recommended products targeted to achieve goals and objectives.
• Salary: Some planners work on a salary basis for financial services institutions such as banks, credit unions, and other related organizations.

The U.S. Department of Labor reports that financial planners earned a median annual salary of $99,580 in May 2023. The most experienced financial planners with the highest level of education earned more than $169,910, while the least experienced financial planners earned less than $48,730.

Firms might also provide beginning financial planners with a steady income by paying a draw, which is a minimum salary based on the commission and fees the planner can be expected to earn.

Some financial planners receive vacation days, sick days, and health insurance, but that depends on whether they work for financial institutions or on their own.