Wealth Management is an area of finance that focuses on helping individuals, companies, or other entities manage their investment portfolios. Many different roles fall under the wealth management umbrella, each with their own salaries, responsibilities, and amount of client interaction. Though roles may differ from firm to firm, if you’re considering working in wealth management, a general understanding of some of the key roles may help you compare your options.

Types of Wealth Management Roles

Wealth management positions can loosely be considered within three categories – roles focused on financial analysis, roles focused on client relationships and advice, and roles that support the other two. Some overlap may occur between these three categories, especially at smaller firms, but the core responsibilities typically fall within one of the three. Compare positions and salaries within each category can help create a better understanding of the industry.

Financial Analyst

There are different types of financial analysts, but what they all have in common is making recommendations, typically regarding investments, based off an analysis of financial information. Though there may be some client interaction, the focus of the position is financial data.

The compensation for financial analysts is higher than compensation in many other industries. According to the U.S. Bureau of Labor Statistics, the median salary for a financial analyst is $86,000 and the top ten percent of financial analysts earn almost double that – $167,000. Though this is more than three times than the annual mean salary in the United States ($51,960), it is lower than the compensation for some of the higher paying roles within wealth management. Though not the most highly compensated wealth management role, a financial analyst position may act as a stepping stone to other areas within wealth management.

Compliance Officer

As with any field, wealth management has many supporting and administrative roles. One example is the role of a compliance officer. Compliance officers typically work internally to ensure that firms comply with all relevant rules and regulations. There is rarely much client interaction in this position.

The median salary for a compliance officer is $69,000 and the top ten percent can expect to make $110,000. Compared to other wealth management roles, the window of compensation for a compliance officer is relatively small and caps out relatively low.

Financial Advisor

Financial advisors typically have a higher level of client interaction, since their main responsibility is maintaining client relationships and providing financial advice. At smaller firms, financial advisors may also be involved in financial analysis. At larger firms, they may be supported by a team who provides them with financial data and analysis.

Financial advisors are typically compensated more highly than those in other wealth management roles. According to the U.S Bureau of Labor Statistics, the median salary for a financial advisor is $89,000. The top ten percent of financial advisors can expect to make over $200,000. The higher compensation is at least, in part, due to the high level of financial knowledge and experience in this role.

As with any occupation, experience, location, and education play a huge role in determining salary. Titles and responsibilities may also differ based on the employer. Overall, a career in wealth management has the potential for compensation considerably higher than the average

Related Courses: 

Online Professional Certificate in Wealth Management
Learn the components of client profiling, asset management techniques, estate, and tax planning, and examine solutions at a high level.

Online Professional Certificate in Asset Management
Learn investment and management best practices, get an edge on your professional competition, and become a practitioner of the distinct discipline of asset management. Take part in this integrated and dynamic curriculum of fiscal integrity, depth, and vision offered to financial professionals seeking to hone the art and science of optimizing asset value and delivering first-rate wealth management.

About The New York Institute of Finance

The New York Institute of Finance (NYIF) is a global leader in professional training for financial services and related industries. NYIF courses cover everything from investment banking, asset pricing, insurance and market structure to financial modeling, treasury operations, and accounting. The New York Institute of Finance has a faculty of industry leaders and offers a range of program delivery options, including self-study, online courses, and in-person classes. Founded by the New York Stock Exchange in 1922, NYIF has trained over 250,000 professionals online and in-class, in over 120 countries.

See all of NYIF’s training and qualifications here.