Investment Adviser Representatives earn a median of $91,987 with significant upside potential. Entry-level roles start around $50,000, while experienced IARs earn $110,000+. The field is growing 10% through 2034 with 24,100 annual openings. The Series 65 exam is your entry point with no prerequisites required.
What Is an Investment Adviser Representative?
An Investment Adviser Representative (IAR) is a licensed professional who provides investment advice for compensation. IARs work for Registered Investment Advisers (RIAs) and are legally bound by a fiduciary duty to act in their clients’ best interests.
Unlike broker-dealer representatives who earn commissions on product sales, IARs typically charge fees based on assets under management (AUM), hourly rates, or flat fees. This fee-based model aligns the advisor’s incentives with client outcomes.
IARs (Series 65) provide investment advice for a fee under a fiduciary standard. Registered Representatives (Series 7) sell securities products under a suitability standard. Many advisors hold both licenses to offer comprehensive services.
IAR Salary by Experience Level
Compensation varies significantly based on experience, client base, and compensation structure. Here’s what IARs earn at different career stages:
| Experience Level | Median Total Compensation | Typical Range |
|---|---|---|
| Entry Level (<1 year) | $49,961 | $40,000 - $60,000 |
| Early Career (1-4 years) | $68,719 | $55,000 - $85,000 |
| Mid-Career (5-9 years) | $83,616 | $70,000 - $120,000 |
| Experienced (10-19 years) | $111,499 | $90,000 - $175,000 |
| Late Career (20+ years) | $105,172 | $85,000 - $200,000+ |
Source: PayScale, March 2025
The Bureau of Labor Statistics reports a median annual wage of $102,140 for personal financial advisors (May 2024). This figure includes all compensation types and represents the broader category that encompasses IARs.
Compensation Components
IAR compensation typically includes multiple components that vary by firm and experience level:
Base Salary
Median base salary is $81,681/year. Provides income stability, especially important for newer advisors building their client base. Some firms offer guaranteed salaries for the first 1-2 years.
Bonuses
Median bonus is $10,584/year. Often tied to AUM growth targets, client acquisition goals, or revenue milestones. Bonus potential increases significantly with seniority.
Commissions/Fees
Median commission is $22,296/year. Fee-based advisors earn a percentage of AUM (typically 0.5%-1.5%). As your book grows, this becomes the largest compensation component.
High Earners: What Top IARs Make
The salary ceiling for IARs is high for those who build substantial books of business:
| Role/Level | Typical Compensation | Key Factor |
|---|---|---|
| Senior Advisor (5-10 years) | $125,000 - $262,000 | Established client relationships |
| Lead Advisor/Team Lead | $150,000 - $300,000 | Managing advisor teams |
| Partner/Principal | $247,000+ | Equity stake in firm |
| RIA Firm Owner | $300,000 - $1M+ | Firm profitability and AUM |
The unlimited upside comes from AUM-based fees. An advisor managing $50 million at a 1% fee earns $500,000 in annual revenue before expenses.
Job Outlook: 10% Growth Through 2034
The employment outlook for IARs is strong, significantly outpacing average job growth.
10% Projected Growth
Employment of personal financial advisors is projected to grow 10% from 2024 to 2034. This is more than three times the average growth rate (3%) for all occupations.
24,100 Annual Openings
About 24,100 openings are projected each year. Many result from advisors retiring, creating opportunities for new entrants to inherit client relationships.
Why the Strong Outlook?
Several factors drive continued demand for investment advisers:
- Aging population: Baby boomers need retirement planning and income distribution strategies
- Longer lifespans: Extended retirements require more sophisticated financial planning
- Pension decline: The shift from defined-benefit pensions to 401(k)s and IRAs means individuals need guidance
- Wealth transfer: $84 trillion is transferring between generations over the next two decades
- Complexity: Tax law changes, investment options, and regulations create demand for professional guidance
Advisors are increasingly moving from wirehouses and broker-dealers to RIA firms. Cerulli Associates projects independent RIAs will grow at a 4% compound annual rate through 2028, far exceeding other channels.
Enter a Growing Field Fast
The IAR profession is growing 10% through 2034 with strong compensation. Most candidates pass the Series 65 in 4-8 weeks of focused study. Learn how long you'll need based on your background.
See Your TimelineDay-to-Day Responsibilities
The IAR role blends client service, analytical work, and business development. Here’s what a typical day looks like:
Client Advisory and Financial Planning
The core of the job is helping clients achieve their financial goals:
- Discovery meetings: Discuss clients’ goals, risk tolerance, and financial situation
- Plan development: Create comprehensive financial plans covering investments, retirement, taxes, and estate planning
- Portfolio reviews: Analyze existing investments and recommend adjustments
- Ongoing guidance: Provide advice on major financial decisions (home purchases, job changes, inheritance)
Portfolio Management
For discretionary accounts, IARs handle investment decisions:
- Asset allocation: Determine appropriate mix of stocks, bonds, and alternatives
- Security selection: Choose specific investments aligned with client objectives
- Rebalancing: Adjust portfolios when market movements cause drift from targets
- Tax management: Implement tax-loss harvesting and asset location strategies
Research and Analysis
Staying informed is essential:
- Market research: Monitor economic conditions, market trends, and investment opportunities
- Due diligence: Evaluate funds, managers, and investment products
- Continuing education: Stay current on regulations, tax laws, and financial planning strategies
Business Development
Growing your practice is critical, especially early in your career:
- Prospecting: Network, ask for referrals, and identify potential clients
- Seminars and events: Host educational workshops to attract prospects
- Centers of influence: Build relationships with CPAs, attorneys, and other professionals who can refer clients
- Digital presence: Maintain website, social media, and thought leadership content
Compliance and Administration
Regulatory requirements are part of the job:
- Documentation: Maintain detailed records of client interactions and recommendations
- Disclosure: Provide required disclosures (Form ADV, fee schedules)
- Reporting: Generate performance reports and account statements
- Continuing education: Complete any state-required IAR CE credits
Successful IARs typically spend 40-50% of their time on client-facing activities, 20-30% on business development, and 20-30% on research and administration. The mix shifts toward client service as your book grows.
Career Progression Path
The IAR career ladder offers clear advancement opportunities with corresponding compensation increases:
Stage 1: Entry Level (Years 0-2)
Titles: Analyst, Associate Advisor, Client Service Associate
Compensation: $45,000 - $65,000
Focus: Learn the business, support senior advisors, obtain licenses, develop technical skills. Many firms provide training programs and mentorship during this phase.
Stage 2: Associate Advisor (Years 2-5)
Titles: Associate Advisor, Paraplanner, Financial Planner
Compensation: $60,000 - $85,000
Focus: Take on client relationships, prepare financial plans, begin building your own book. May pursue CFP designation during this stage.
Stage 3: Advisor (Years 5-10)
Titles: Financial Advisor, Wealth Advisor, Senior Planner
Compensation: $100,000 - $175,000
Focus: Manage significant client relationships, develop specialization, mentor junior staff. Compensation increasingly tied to AUM and production.
Stage 4: Senior Advisor (Years 10+)
Titles: Senior Advisor, Lead Advisor, Managing Director
Compensation: $150,000 - $300,000+
Focus: Manage complex client situations, lead teams, drive firm strategy. May have path to partnership or consider independence.
Stage 5: Partner/Owner
Titles: Partner, Principal, Founder
Compensation: $250,000 - $1M+
Focus: Equity ownership in firm, strategic leadership, business development. Compensation tied to firm profitability and eventual sale value.
Top Employers of Investment Advisers
IARs work across various firm types, each with different cultures and compensation structures:
Large Broker-Dealers
These firms offer extensive training programs and resources:
- LPL Financial: 32,000+ advisors, largest independent broker-dealer
- Raymond James: Strong culture and advisor support
- Edward Jones: Branch office model, strong training program
- Ameriprise: Comprehensive platform and brand recognition
Top Fee-Only RIA Firms
Pure fee-only firms focusing on fiduciary advice:
| Firm | Assets Under Management | Headquarters |
|---|---|---|
| Moneta Group | $42.8 billion | St. Louis, MO |
| Chevy Chase Trust | $40.3 billion | Bethesda, MD |
| EP Wealth Advisors | $35.6 billion | Torrance, CA |
| CAPTRUST | $800+ billion (total) | Raleigh, NC |
Source: Financial Planning RIA Leaders 2025
Wirehouse Firms
Large Wall Street firms with extensive resources:
- Morgan Stanley Wealth Management
- Bank of America/Merrill Lynch
- UBS Wealth Management
- Wells Fargo Advisors
Independent Path
Many IARs eventually start their own RIA firms:
- Full control over business decisions
- Keep larger share of revenue
- Choose your own clients and service model
- Build equity value for eventual sale
The RIA channel is growing fastest. Many experienced advisors are leaving wirehouses for independence, attracted by higher payout rates (70-90% vs. 40-50%) and greater flexibility.
How to Become an IAR
The path to becoming an Investment Adviser Representative is straightforward:
Step 1: Pass the Series 65
The Series 65 (Uniform Investment Adviser Law Exam) is required for IAR registration. No prerequisites, no sponsor required. 130 scored questions, 180 minutes, 71% to pass.
Step 2: Register with Your State
Complete Form U4 and register as an IAR in your state(s) of practice. Registration fees vary by state ($25-$200 annually). Background check required.
Step 3: Join or Start an RIA
Work for an existing RIA firm or register your own. State registration for RIAs managing under $110 million; SEC registration for larger firms.
Step 4: Build Your Practice
Develop client relationships, grow your AUM, and advance your career. Consider additional credentials like CFP or CFA as you progress.
Most candidates study 10-15 hours per week for 4-8 weeks. Choose a timeline based on your background: finance professionals need 4 weeks, those with some experience need 6 weeks, and career changers should plan for 8 weeks. Our study schedule guide provides week-by-week breakdowns for all three timelines with daily topic assignments and practice exam milestones.
If you already hold Series 7, you can take the Series 66 instead of Series 65. The Series 66 combines Series 63 and Series 65 content. If you hold CFP, CFA, ChFC, or certain other designations, you may be eligible for a Series 65 exam waiver.
Skills for Success
Beyond passing the Series 65, successful IARs develop these competencies:
Communication
Explain complex financial concepts clearly. Listen actively to understand client concerns. Build trust through transparent, honest communication.
Relationship Building
Develop deep client relationships. Maintain regular contact. Remember personal details and life events. Make clients feel valued and understood.
Business Development
Network effectively. Ask for referrals. Present your value proposition. Convert prospects into clients. These skills determine long-term success.
Analytical Thinking
Construct appropriate portfolios. Analyze client situations. Make data-driven recommendations. Understand market dynamics and economic factors.
About one in three candidates fail the Series 65 on their first attempt, often due to preventable mistakes like underestimating the exam, poor time management, or memorizing without understanding. These failures delay your entry into a high-growth field. Our common mistakes guide identifies the 10 traps that cause failures and shows you how to avoid them, so you pass on your first try and start earning sooner.
Is the IAR Career Worth It?
The IAR profession offers compelling advantages for the right candidates:
Pros:
- Strong earnings potential that grows with experience
- Meaningful work helping clients achieve financial security
- Flexibility (many roles allow remote work and flexible hours)
- Clear career progression with multiple paths
- Growing industry with strong job security
- Low barrier to entry (Series 65 requires weeks, not years)
Cons:
- Early years can be challenging financially
- Business development pressure, especially at some firms
- Regulatory burden and compliance requirements
- Fiduciary responsibility is serious
- Income variability tied to market performance
For those who enjoy working with people, have analytical skills, and are comfortable with sales and relationship-building, the IAR career offers an excellent combination of earnings potential and job satisfaction.
Median Salary: $91,987 (PayScale) / $102,140 (BLS)
Salary Range: $50,000 entry-level to $300,000+ senior/partner level
Job Growth: 10% projected 2024-2034 (3x average)
Annual Openings: 24,100 per year
Entry Requirement: Series 65 exam (no prerequisites, 4-8 weeks prep)
Career Path: Associate → Advisor → Senior Advisor → Partner/Owner
Top Employers: LPL Financial, Moneta Group, CAPTRUST, major wirehouses, or your own RIA
Bottom Line: The IAR profession offers strong earnings potential, job security, and meaningful work. The Series 65 provides an accessible entry point, with compensation growing substantially as you build experience and your client base.