financial advisor salary ohio: 10 Things I Wish I’d Known Earlier
My sister is a financial advisor in Ohio. She makes $87K in that state. If you’re in the same industry, you’re probably going to be making more.
She spends most of her time in a cubicle and usually does not have to interact with the public. She uses a lot of stock options to invest for her clients.
While she may not be able to get the full salary she wants, it is not unrealistic to imagine that in today’s financial environment, an advisor could make more than you, even with all of the stock options that she has. Even if she has to work her ass off just to make ends meet. She also gets a little free stock at the end of the year, which helps her out with that $500k.
It’s a common misconception that advisors are paid by the hour. That is not, in fact, true. In the USA, they are paid on the basis of a salary and the value of their stock options, with no added bonuses. In the very best cases, an adviser can make more than your salary, but that only happens in very rare circumstances.
The bottom line is that the advisors’ salary is what they make. And since most advisors have options, their stock options help them out with that bill.
In Ohio, the advisor’s salary is $62,000 a year (about $22k/month). The stock options are valued between $10,000 and $75,000. So the advisor only makes $1,000 more than your salary.
Some might argue that this is the wrong way to look at it, but since it’s a tax-free, employer-paid salary, it’s not like there’s a lot of incentive to work for less than that. And since they don’t have to pay anything for the stock options (only a 10% tax on the transaction), they can easily make more than the advisor does.
To be fair the advisor, does earn his salary though. The stock options are not earned, just put in the contract and can be exercised. As for the stock, its the same as getting it from the board of directors of the company. They can buy it back at any time, and it can be exercised, but the process is not the same.
The advisor has a lot of leverage because he has all the stock options. But he only has to deliver 10% of his compensation to the company. That means he has an incentive to use his stock options to earn a living. In an ideal world, everyone would be paid the same amount of stock options, which would make everyone share in the same pool of income.
Well, if you could pay everyone the same amount of stock options, then you would have a much more equal distribution of money in the company. But even if you could pay everyone the same amount, you would still have a lot of people who would receive a lot more than others. And the more people receive, the more of their income would be diluted.