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The differences between investment advisors and wealth management advisors 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 wealth management advisor. Additionally, an investment advisor has an average salary of $105,377, which is higher than the $91,605 average annual salary of a wealth management advisor.
The top three skills for an investment advisor include exceptional client, risk management and client relationships. The most important skills for a wealth management advisor are customer service, insurance products, and securities.
| Investment Advisor | Wealth Management Advisor | |
| Yearly salary | $105,377 | $91,605 |
| Hourly rate | $50.66 | $44.04 |
| Growth rate | 15% | 15% |
| Number of jobs | 63,438 | 127,946 |
| Job satisfaction | - | 4 |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 72% |
| 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.
As a wealth management advisor, you will be responsible for advising and guiding clients on financial plans using your knowledge and expertise on investment and tax strategies, pension plans, insurance, real estate, and securities. You will be regularly checking clients to re-evaluate their situation and future financial goals. Additionally, you are responsible for assessing clients' tolerance for risk and providing an investment strategy to help them reach these goals. Other duties and responsibilities may include coordinating with your lawyers or accountants to minimize the tax owed by their clients and assisting clients with estate planning strategies.
Investment advisors and wealth management advisors have different pay scales, as shown below.
| Investment Advisor | Wealth Management Advisor | |
| Average salary | $105,377 | $91,605 |
| Salary range | Between $60,000 And $184,000 | Between $49,000 And $168,000 |
| Highest paying City | New York, NY | New York, NY |
| Highest paying state | New York | Massachusetts |
| Best paying company | McKinsey & Company Inc | Capital Group |
| Best paying industry | Telecommunication | Finance |
There are a few differences between an investment advisor and a wealth management advisor in terms of educational background:
| Investment Advisor | Wealth Management Advisor | |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 72% |
| Most common major | Business | Business |
| Most common college | University of Minnesota - Twin Cities | University of Minnesota - Twin Cities |
Here are the differences between investment advisors' and wealth management advisors' demographics:
| Investment Advisor | Wealth Management Advisor | |
| Average age | 45 | 45 |
| Gender ratio | Male, 72.3% Female, 27.7% | Male, 69.1% Female, 30.9% |
| 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, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.3% White, 72.2% American Indian and Alaska Native, 0.1% |
| LGBT Percentage | 5% | 5% |