Q&A: How Much Do Financial Advisors Earn in the Philippines?

My question is, how much do financial advisors earn, and do you think a person like me with a little financial background can also become a successful financial advisor?

Thanks for answering my question and more power.

Sincerely,

Jay

 Dear Jay,

Thank you for reaching out to us to clarify about this issue.

With regard to your question as to how much financial advisors earn, there seems to be no definite answer. In the Philippines, financial advisors earn commissions and variable income. They do not earn a fixed income. This differs from financial advisors in developed countries, where they charge their clients a specific consultancy fee or management fee. Unfortunately, in the Philippines, that setup may not happen in the near future.

I started my career as a financial advisor when I was age 21, right after college. I started as a part-time advisor to increase my income from employment and also for the learnings. I wanted to know more about insurance, investments, growing my wealth, and how to invest in the stock market.

When I first started as a part-time advisor while working as an accountant in one of the big four accounting firms in Makati, I usually met my clients after work or on Saturdays. At that time, I was earning an average of P15,000 to P20,000 per month in sales as a financial advisor.

In my 2nd year as an advisor, I started to become less shy and started to be more confident in my job. Also, since financial advisors usually earn not just the first year’s commission but usually up to 3 years’ worth of commissions, I eventually started to earn P20,000 to P50,000 per month. The key here is to take care of your existing clients and continually serve them so you will have repeat business.

Globally, there is an international organization called the Million Dollar Round Table or MDRT, one of the best honors a financial advisor can achieve. Unlike certification courses such as the Registered Financial Planner (RFP) or the Certified Wealth Planner (CWP) where you study and take an exam to be certified, the MDRT designation can only be achieved if you reach a certain level of income/premium every year. This means you can be an MDRT this year, and you are not the next year.

The income requirements to be part of this organization can be found on the website of MDRT at https://www.mdrt.org/join/member-requirements/?countryCode=PH#. Currently, the income requirement for 2024 to be part of MDRT is Php 2,191,500. This means that if you earn at least Php 2,191,500, you are eligible to apply as a member of MDRT. This amount changes every year to adjust for inflation.

MDRT financial advisors represent only 5% of the total financial advisors all over the world. Most MDRT financial advisors take time to build up their skills, confidence, and client base to achieve MDRT status. But that does not mean it cannot be done. I have been an MDRT member for ten years now and counting, so it can be done. As they say, if there is a will, there is a way.

As to your second question, if you need to have financial background to be a financial advisor, the answer is no. In fact, some of the top financial advisors I know did not take any finance classes in college. The key here is to attend regular training and have a mentor who is also an MDRT.

If you wish to read more about the career, visit www.aetosfph.com/careers.

Hopefully, I answered all your questions.

P.S. If you are considering becoming a financial advisor, give it a try – maybe start part-time. Being a financial advisor now is easier since everything is digital, so wherever you are in the Philippines, you can become a financial advisor as long as you have an internet connection for training and generating proposals and around 5 hours of extra time per week for the job. Who knows, this might be your calling in life. The first step to becoming a financial advisor is knowing if you are fit to become one. We would be glad to have you on our team.