When it comes to financial advice, many individuals seek the guidance of a FA(financial advisor). From planning for retirement to managing investments, financial advisors provide a range of services that help clients make informed decisions about their money.
As individuals and businesses strive to secure their financial futures, the demand for financial advisors has surged. We now have more insurance products than ever catered, they are:
- Life Insurance
- Accident Insurance
- Wealth Preservation
- Term Insurance
- Travel Insurance
- Car Insurance
- Housing Insurance
With that many products and demand for them. Surely, you might start to question how much financial advisors make in Singapore.
What do Financial Advisors actually do?
When we think of financial advisors, we may think of someone sitting at a coffee shop giving financial tips and advice to clients.
Well, that’s true somewhat.😅
The job of financial advisors is to help individuals and businesses manage their finances effectively. They provide:
- valuable insights
- protect their clients
- recommend investment strategies
- guide to help clients achieve their financial goals.
In essence, a high-earning financial advisor is someone who can not only solve financial issues with clients but also have the heart to serve them. There are many little details that go behind the scenes of a happy agent happy client, and it all comes from the heart.
How Much Do Financial Advisors Make?
Financial advisors in Singapore typically earn a competitive income that reflects their expertise and the value they bring to their clients. A financial advisor’s income can be simplified into one simple formula:
Financial Advisor’s Income = Number of Clients x Quality per Lead x Opportunity to Serve
What Affects an FA’s Income?
The answer to “How much does a financial advisor make?” isn’t as simple as placing a price tag on it. The income has largely depended on these number of factors such as:
Credentials, Certifications, and Experience
As with many professions, experience, and education can play a significant role in a financial advisor’s earnings. While the profession may be based on commissions, clients are still wary of what the FA has to offer as a basic requirement to trust their service. A person with a finance degree is able to showcase more professionalism when it comes to providing correct informative value to the customer.
Additionally, obtaining certain certifications or licenses can also impact earning potential. For example, financial advisors who hold a Certified Financial Planner (CFP) designation may be seen as more qualified and knowledgeable, potentially leading to higher compensation.
If you want to know more about what certificate to potentially look out for, here are some global certificate the finance sector are looking out for. If you are looking to become an FA in Singapore, here are the certificates you need to have based on MAS guidelines.
Ultimately, clients are always looking out for experienced individuals in the business. They are looking for agents with a proper financial portfolio to showcase their values, awards received, and years of experience in the business. An agent with a year of experience will definitely not be able to compete against his more experienced folks with 20+ years in the business.
Type of Employer
Knowing the type of employer for an insurance agent is important because it affects their compensation, resources, reputation, and scope of work.
Different employers may offer different benefits and support for their agents and may have different levels of credibility.
This information can help clients make informed decisions when choosing an insurance agent to work with since they are more likely to package everything in one company.
In Singapore, although many of the insurance products are somewhat similar, you need to find the one you are most comfortable working with. You aren’t buying just the product, you are buying an insurance agent who will be there for you in times of uncertainty and a better future.
Type of Policy
It’s worth noting that insurance agents in Singapore often have to meet certain sales targets or performance metrics to earn higher commissions or bonuses.
The commission rates may also be subject to adjustment by the insurance company based on factors such as market conditions, product profitability, or regulatory changes so this illustration may be outdated.
Client Base
Probably one of the most overlooked important skills that can greatly determine an FA’s income is the people they work with.
Advisors who work with high-net-worth individuals or manage large investment portfolios may be able to earn more than those who work with smaller clients or focus on financial planning for the average person.
After years of managing a large number of clients, FA has the ability to link with other businesses to help one another. This is a major plus point when it comes to networking with the right people.
How Much Does a Financial Advisor Make?
According to different job sources online, statistically financial advisors make an average of $3,000 based on Glassdoor and $3,699 based on Indeed in Singapore. If you are able to climb to the top 10% of the financial industry, you would be looking at between $200,000 or more. However, The numbers may not be as accurate as it seems.
With a high turnover rate and figures typically pulled up by the top 10% of FA in the business. The job of a financial advisor isn’t as easy as it seems. A portion of the income needed to go into marketing some of which needs to be delegated to building relationships with customers. Starting out as an FA is tough.
While this may point out some negative starting points of being an FA. The job can also be a rewarding one.
Why should I join the financial industry?
With the growing need for financial guidance and investment management, the financial industry is booming, and there has never been a better time to join it as an advisor. According to the Life Insurance Association of Singapore’s most recent statistics, the FA channel is expanding in Singapore, accounting for close to 25% of all weighted premiums for life insurance products, up from 22% and 19% in 2018 and 2017, respectively.
Older FAs always remind their younger folks to start early in the business to “chope” their friends or get known in the business early. Since the FA industry is largely based on experience, starting early is a huge bonus!
Booming Financial Industry
Singapore’s financial industry is growing rapidly, with numerous multinational corporations, banks, and financial institutions headquartered in the country. The government’s pro-business policies and initiatives have created a favorable environment for the financial sector, attracting investment and fostering innovation. These businesses are also constantly on the lookout for corporate insurance, where many insurance agents can actually work to close some of these deals.
With probably tens of hundreds of employees working in a company, any financial industry will want to close a corporate company to earn such a huge commission.
High Earning Potential
Financial advisors in Singapore have the potential to earn a lucrative income. According to Payscale, the average salary for a financial advisor in Singapore is S$81,766 per year, with the top earners making over S$190,000 per year. Yes, the number here can vary a lot with different online channels sharing different amounts.
But ultimately, if you are looking to make over 6 figures in earnings and don’t mind the tough work, the FA industry can be one of the most rewarding places for that.
Opportunities for Growth and Advancement
The financial industry in Singapore offers numerous opportunities for growth and advancement. Financial advisors can specialize in different areas, such as investment management, wealth management, or retirement planning, and can advance to leadership positions in their firms.
Diverse Client Base
Singapore’s multicultural society creates a diverse client base for financial advisors. Financial advisors can work with clients from different backgrounds and nationalities, providing them with customized financial advice that meets their unique needs and preferences.
Ability to help others
Saving the best for last. As a financial advisor, you have the opportunity to make a positive impact on people’s lives. You can help your clients manage their finances, plan for their future, and achieve their financial goals. This sense of purpose can be incredibly rewarding and fulfilling.
Sharing the importance of health insurance and understanding financial literacy better has definitely helped the people around me. By showing cases of how my services have impacted the lives of others, I am proud of what I am doing and love to keep doing it.
Tips for Aspiring Financial Advisors
If you’re considering a career in finance and want to maximize your earning potential, here are some tips to keep in mind:
- Pursue education and certifications: Obtaining advanced degrees or certifications, such as a CFP designation, can help you stand out in the field and potentially command higher fees or salaries.
- Consider working for a larger firm: While smaller, independent firms may offer more flexibility, working for a larger financial firm can provide more opportunities for growth and higher compensation.
- Focus on building a diverse and loyal client base: By cultivating relationships with a range of clients, you can increase your earning potential and ensure a steady stream of income.
- Stay up-to-date with industry trends and regulations: The financial industry is constantly evolving, and staying informed can help you provide better service to your clients and potentially increase your earnings.
- Consider specializing in a specific area: Focusing on a niche area, such as retirement planning or estate planning, can help you stand out in the field and potentially command higher fees or salaries.
- Be prepared to work hard: Building a successful career in finance takes time and effort. Be prepared to work long hours and take on challenging projects to achieve your goals.
There’s a lot to learn in the financial industry space both soft and hard skills. Even if you are an extrovert or introvert, there’s definitely a way for you to sell the product to your customers.
FAQs: Confirm have!
Is it possible to earn a six-figure income as a financial advisor?
Yes, financial advisors can earn six-figure even seven-figure incomes, especially those with significant experience, advanced degrees, or large, high-net-worth clients. It takes a while to build but the income will compound over time.
How much do financial advisors make on average?
According to 197 surveyed individuals on GlassDoor, The average salary for a Financial Advisor is $3,000 per month in Singapore. The average additional cash compensation for a Financial Advisor in Singapore is $20,000, with a range from $2,400 – $67,200. This number may be inaccurate since the earliest advisor a year in the business does not actually make over $20,000 a month.
Do financial advisors make more money if they work for larger firms?
In some cases, yes. Financial advisors who work for larger financial firms may be able to command higher salaries or bonuses than those who work for smaller, independent firms.
Can financial advisors make money through commissions?
Yes, some financial advisors work on a commission basis, earning a percentage of the assets they manage or the products they sell. The higher your authority in the company, the more you are able to earn a cut of that commission.
Questions to ask a financial advisor
Surely there are more questions you want to know more about. You can check out our insurance category page to find out more or contact me here.
It’s Tough
The answer to “How much does a financial advisor make?” is not straightforward and can vary depending on a variety of factors since earnings are largely commission-based. However, with experience, education, and a diverse client base, financial advisors have the potential to earn significant incomes and build successful careers in the finance industry.
If you’re considering a career in finance, it’s important to stay informed about industry trends and regulations, pursue education and certifications, and be prepared to work hard to achieve your goals. With dedication and hard work, you too can succeed as a financial advisor and potentially earn a comfortable living doing what you love.
If you still have any more questions, feel free to reach out to me at [email protected] or check out my Instagram page!
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