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Investment advisor vs wealth management advisor

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 vs wealth management advisor overview

Investment AdvisorWealth Management Advisor
Yearly salary$105,377$91,605
Hourly rate$50.66$44.04
Growth rate15%15%
Number of jobs63,438127,946
Job satisfaction-4
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 72%
Average age4545
Years of experience44

What does an investment advisor do?

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.

What does a wealth management advisor do?

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 advisor vs wealth management advisor salary

Investment advisors and wealth management advisors have different pay scales, as shown below.

Investment AdvisorWealth Management Advisor
Average salary$105,377$91,605
Salary rangeBetween $60,000 And $184,000Between $49,000 And $168,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkMassachusetts
Best paying companyMcKinsey & Company IncCapital Group
Best paying industryTelecommunicationFinance

Differences between investment advisor and wealth management advisor education

There are a few differences between an investment advisor and a wealth management advisor in terms of educational background:

Investment AdvisorWealth Management Advisor
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 72%
Most common majorBusinessBusiness
Most common collegeUniversity of Minnesota - Twin CitiesUniversity of Minnesota - Twin Cities

Investment advisor vs wealth management advisor demographics

Here are the differences between investment advisors' and wealth management advisors' demographics:

Investment AdvisorWealth Management Advisor
Average age4545
Gender ratioMale, 72.3% Female, 27.7%Male, 69.1% Female, 30.9%
Race ratioBlack 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 Percentage5%5%

Differences between investment advisor and wealth management advisor duties and responsibilities

Investment advisor example responsibilities.

  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Obtain skills with different financial programs and tools such as Morningstar and NetX360.
  • Advise and recommend insurance products including, fix and variable annuities, and term life.
  • Focus on macroeconomic fundamentals, high yield, distress debt, volatility and macro base cross-asset statistical strategies.
  • Communicate information to clients on various products offer such as equity funds, bond funds, annuities, and money markets.
  • Identify client- specific and regulatory reporting requirements, review purchase and redemption activity, securities settlements, and cash movements.
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Wealth management advisor example responsibilities.

  • Handle sales of permanent and term insurance, fix annuities, brokerage accounts, mutual funds, and manage money accounts.
  • Manage FINRA, NASD compliance, quality control and documentation for all stock, bond and option trades place by team.
  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Contribute MorningStar research reports for mutual fund portfolios.
  • Maintain and monitor files to ensure proper compliance procedures under FINRA.
  • Research and compare active vs. passive financial managers who utilize section rotation and ETFs to hedge risk and capture alpha.
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Investment advisor vs wealth management advisor skills

Common investment advisor skills
  • Exceptional Client, 12%
  • Risk Management, 10%
  • Client Relationships, 9%
  • Health Insurance, 8%
  • Business Development, 7%
  • FINRA, 5%
Common wealth management advisor skills
  • Customer Service, 11%
  • Insurance Products, 8%
  • Securities, 8%
  • Portfolio Management, 7%
  • Client Relationships, 7%
  • FINRA, 6%

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