People and small business owners need help with retirement, investments, taxes, insurance and planning for big decisions. The Bureau of Labor Statistics counted about 326,000 personal financial advisors in 2024, with a median wage of $102,140 in May 2024, and projects 10% growth from 2024 to 2034, much faster than average.
Independent advisors build practices through trust, referrals and clear fee structures. Registration, compliance and fiduciary responsibilities are central to the business.
The workforce
| Occupation | Jobs (2024) | Median pay (May 2024) | Projected growth, 2024 to 2034 |
|---|---|---|---|
| Personal financial advisors | about 326,000 | $102,140 | +10% |
Source: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook.
Market data
| Measure | Value |
|---|---|
| Advisor jobs added, 2024-2034 | 31,200 |
Business models compared
The figures below are illustrative months from our step-by-step guides, not industry averages. They show how revenue and costs typically fit together; your market, prices and costs will differ.
| Business model | Startup costs | Example monthly revenue | Costs | Profit before owner pay | Margin |
|---|---|---|---|---|---|
| Fee-only planner (solo, flat-fee clients) | Low to moderate: registration, compliance, planning software, insurance | $15,000 | $3,350 | $11,650 | 78% |
| Small advisory practice (advisor plus 2 staff) | Moderate: staff, compliance, technology, office | $45,000 | $23,400 | $21,600 | 48% |
| Tax and planning for small business owners | Low: credentials, tax software, insurance | $18,000 | $5,200 | $12,800 | 71% |
Fixed and variable costs
For projections, the most useful split is between variable costs, which rise and fall with sales (materials, parts, hourly labor), and fixed costs, which you pay every month regardless (rent, salaried staff, insurance, loan payments).
| Business model | Variable costs (% of revenue) | Fixed costs per month | What it means |
|---|---|---|---|
| Fee-only planner (solo, flat-fee clients) | 0.0% | $3,350 | Low costs overall: time is the main constraint |
| Small advisory practice (advisor plus 2 staff) | 0.0% | $23,400 | Mostly fixed: slow start-up months are expensive |
| Tax and planning for small business owners | 13.9% | $2,700 | Low costs overall: time is the main constraint |
What the numbers say
Solo planners have low overhead, with high margins once client rosters are full; profits shown are before owner pay.
Practices add staff for capacity. Associates and client service staff raise fixed costs.
Business owner clients need combined help. Tax and planning services together create strong relationships.
The three models in brief
Fee-only planner. Flat or hourly fees for planning, without product commissions.
Small advisory practice. Ongoing advice and portfolio management for a client base.
Tax and planning for business owners. Combined tax preparation and planning. See small business taxes and bookkeeping.
Cost structure: small advisory practice (advisor plus 2 staff)
Each cost as a share of the example month’s revenue ($45,000):
| Cost | Monthly amount | Share of revenue | Type |
|---|---|---|---|
| Associate advisor | $8,500 | 18.9% | Fixed |
| Client service associate | $4,500 | 10.0% | Fixed |
| Payroll taxes and benefits | $2,600 | 5.8% | Fixed |
| Office | $2,500 | 5.6% | Fixed |
| Marketing | $2,000 | 4.4% | Fixed |
| Technology and data | $1,800 | 4.0% | Fixed |
| Compliance | $900 | 2.0% | Fixed |
| E&O insurance | $600 | 1.3% | Fixed |
| Profit before owner pay | $21,600 | 48% |
A first-year projection: small advisory practice (advisor plus 2 staff)
New businesses rarely start at full speed. This projection assumes revenue ramps from 35% of the example month in month 1 to 100% by month 12, variable costs move with revenue, and fixed costs stay the same every month. It’s a planning illustration, not a forecast.
| Month | Revenue | Variable costs | Fixed costs | Profit | Cumulative |
|---|---|---|---|---|---|
| 1 | $15,750 | $0 | $23,400 | -$7,650 | -$7,650 |
| 2 | $20,250 | $0 | $23,400 | -$3,150 | -$10,800 |
| 3 | $24,750 | $0 | $23,400 | $1,350 | -$9,450 |
| 4 | $27,900 | $0 | $23,400 | $4,500 | -$4,950 |
| 5 | $31,500 | $0 | $23,400 | $8,100 | $3,150 |
| 6 | $34,200 | $0 | $23,400 | $10,800 | $13,950 |
| 7 | $36,900 | $0 | $23,400 | $13,500 | $27,450 |
| 8 | $39,150 | $0 | $23,400 | $15,750 | $43,200 |
| 9 | $40,950 | $0 | $23,400 | $17,550 | $60,750 |
| 10 | $42,750 | $0 | $23,400 | $19,350 | $80,100 |
| 11 | $44,100 | $0 | $23,400 | $20,700 | $100,800 |
| 12 | $45,000 | $0 | $23,400 | $21,600 | $122,400 |
Year one: revenue $403,200, profit before owner pay $122,400. The first profitable month is month 3. Cumulative results bottom out at -$10,800, which is the minimum cash cushion this plan would need, before any startup costs.
Staff, technology and compliance costs come before the client base grows, so this practice illustration turns profitable in month 3, with a cumulative low of about $10,800. Building a full client roster usually takes longer.
How advisors charge
- Flat fees for plans.
- Hourly fees for advice.
- Percentage of assets under management.
- Retainer or subscription fees.
- Commissions on products (with appropriate licenses).
A startup checklist
- Register with the SEC or your state as an investment adviser, as required.
- Obtain securities licenses if selling products.
- Set up compliance: policies, recordkeeping, disclosures.
- Choose planning, CRM and custody platforms.
- Buy errors and omissions insurance.
Where the opportunities are
- Small business owners needing retirement and tax planning.
- Flat-fee planning for younger clients.
- Retirement income planning.
- Niche specialties such as contractors, medical professionals or families.
Key terms
| Term | Meaning |
|---|---|
| Fiduciary | Legally required to act in the client’s best interest |
| RIA | Registered investment adviser |
| AUM | Assets under management |
| Form ADV | Adviser disclosure document |
Trust is the business
Clear fees, honest advice and careful compliance build long relationships and referrals.
Marketing a planning practice
Referrals, educational workshops, partnerships with accountants and attorneys, and helpful content bring clients.
Document everything
Recordkeeping and disclosures protect clients and your practice.
How to use these numbers for your own plan
- Start with the closest model above and its cost structure.
- Replace every price and cost with local quotes: insurance, wages, vehicles, materials and your expected prices.
- Estimate your ramp: how many jobs you can realistically win each month in year one.
- Separate fixed and variable costs, then calculate your break-even point with our free break-even calculator.
- Map cash month by month with our cash flow forecast, including equipment and loan payments.
- Build the plan in our free Business Planner.
These figures will also feed a planned Advanton projection tool, so you’ll be able to start from an industry template and adjust it to your situation.
About this data
Workforce figures come from the U.S. Bureau of Labor Statistics (Occupational Outlook Handbook and Occupational Employment and Wage Statistics, May 2024 and the 2024 to 2034 projections). Market figures cite their sources in the list above. Business model figures are illustrative months built from typical prices and costs to show how revenue, fixed costs and variable costs fit together; they are not industry averages or guarantees. We review these profiles when new government data is released, at least once a year. The same figures are available in a structured format for Advanton’s upcoming business projection tool.
Licensing and rules
Investment advisers register with the SEC or their state depending on assets under management; securities licenses for selling products; Certified Financial Planner and other designations are voluntary but valued; fiduciary duties; tax preparation requires a PTIN. Requirements change; confirm with your state and local agencies before you start.
Frequently asked questions
What do financial advisors earn?
BLS reported a median of $102,140 in May 2024.
Do financial planners need to register?
Investment advisers register with the SEC or their state, depending on assets managed.
Is financial planning growing?
BLS projects 10% growth from 2024 to 2034.
How can I use these numbers?
Start with the closest financial planning model, then replace every figure with your local prices, wages and expected volume.
Keep learning
- Fee-only planner
- Tax and planning for small business owners
- Local SEO for contractors
- How to get more contractor leads
- Specialty trades industry data
Sources
Last reviewed October 30, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
