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The differences between investment advisors and finance planners can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an investment advisor and a finance planner. Additionally, an investment advisor has an average salary of $105,377, which is higher than the $71,607 average annual salary of a finance planner.
The top three skills for an investment advisor include exceptional client, risk management and client relationships. The most important skills for a finance planner are financial aid, financial services, and client facing.
| Investment Advisor | Finance Planner | |
| Yearly salary | $105,377 | $71,607 |
| Hourly rate | $50.66 | $34.43 |
| Growth rate | 15% | 15% |
| Number of jobs | 63,438 | 91,557 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 73% |
| Average age | 45 | 45 |
| Years of experience | 4 | 4 |
An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.
A financial planner is responsible for handling client accounts and providing financial advice to determine the best investment options according to the clients' interests and risk appetite. Financial planners record the clients' living expenses as a part of their portfolio, identifying their long-term goals and objectives, and giving tax advice. They also educate clients with investment options and opportunities to improve the clients' account performance and sell financial products. A financial planner must have excellent analytical and communication skills to conduct data and statistical analysis, especially in researching financial instruments in the market.
Investment advisors and finance planners have different pay scales, as shown below.
| Investment Advisor | Finance Planner | |
| Average salary | $105,377 | $71,607 |
| Salary range | Between $60,000 And $184,000 | Between $42,000 And $120,000 |
| Highest paying City | New York, NY | Springfield, MA |
| Highest paying state | New York | Massachusetts |
| Best paying company | McKinsey & Company Inc | Northern Trust |
| Best paying industry | Telecommunication | Insurance |
There are a few differences between an investment advisor and a finance planner in terms of educational background:
| Investment Advisor | Finance Planner | |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 73% |
| Most common major | Business | Business |
| Most common college | University of Minnesota - Twin Cities | University of Pennsylvania |
Here are the differences between investment advisors' and finance planners' demographics:
| Investment Advisor | Finance Planner | |
| Average age | 45 | 45 |
| Gender ratio | Male, 72.3% Female, 27.7% | Male, 62.0% Female, 38.0% |
| Race ratio | Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1% | Black or African American, 5.7% Unknown, 4.4% Hispanic or Latino, 9.6% Asian, 8.4% White, 71.8% American Indian and Alaska Native, 0.1% |
| LGBT Percentage | 5% | 5% |