Finding fulfilling and financially stable careers can be challenging. Most would agree that the finance industry in Massachusetts offers attractive salaries.
In this article, we'll take an in-depth look at finance salaries in Massachusetts to better understand career prospects and earning potential.
You'll see a breakdown of pay for roles like financial advisors and portfolio administrators, learn how Massachusetts salaries compare to national trends, and discover some of the state's top financial employers.
Introduction to Finance Salaries in Massachusetts
Massachusetts has a long history as a center of commerce and finance in the United States. This section will provide an overview of how that history has shaped wages and salaries in the finance industry across the state.
The Impact of Historic Wealth on Massachusetts' Finance Industry
- Massachusetts has been home to several prominent banks, investment firms, and insurance companies for over 200 years. This includes major players like Liberty Mutual, John Hancock, and Berkshire Hathaway Specialty Insurance.
- The state's concentration of wealth and private investment has created high demand for financial services and advisors to manage that money. This fuels competition for talent and drives up wages.
- Boston's stature as a global finance hub also attracts top talent from around the world, putting further upward pressure on salaries to remain competitive.
- The demand is especially high for those with specialized expertise in areas like portfolio management, tax planning, risk analysis, and compliance. These skills command premium salaries.
Understanding Finance Salaries in the Context of the Bay State
- According to the Bureau of Labor Statistics (BLS), the average annual salary for financial advisors in Massachusetts is $123,180 compared to $94,330 nationally.
- The state has one of the highest concentrations of high-income residents in need of financial advisors to steward their wealth. This enables advisors to charge higher fees.
- The cost of living in Massachusetts is also 23% higher than the national average. So wages across industries tend to be higher to match the increased prices for housing, food, and other expenses.
- Finance wages also tend to be higher in the Boston metro area specifically. So salaries fall as you move away from the state's major urban hubs.
- Still, most areas of Massachusetts offer higher earning potential for finance roles than the national median thanks to the state's historic concentration of wealth.
How much does a wealth advisor earn in Bay Area?
The average salary for a financial advisor in the San Francisco Metro Area is approximately $163,000 per year according to self-reported data. However, salaries can range widely between $42,500 to $786,500 depending on various factors.
Some key factors that impact financial advisor salaries in the region include:
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Experience level: More experienced advisors tend to earn higher salaries. Entry-level positions start around $42,500, while advisors with 10+ years earn over $200,000.
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Employer: Salaries vary across different firms. Large wealth management companies like Morgan Stanley tend to pay higher base salaries.
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Bonuses and commissions: Many advisors earn bonuses for meeting goals or commissions based on assets under management. These can significantly increase total compensation.
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Specialization: Advisors who specialize in areas like portfolio management or tax planning may command higher salaries.
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Location: Advisors working in the core San Francisco metro area tend to earn 10-15% more than those in outlying areas.
While $163,000 is the average base salary, total compensation can be far higher when factoring in bonuses, commissions, profit sharing, and other incentives. Ultimately salaries are correlated with factors like client assets under management, client retention rates, and ability to generate new business.
What state do financial advisors make the most money?
Financial advisors in Massachusetts earn competitive salaries compared to the national average. According to the Bureau of Labor Statistics, the average annual salary for financial advisors in Massachusetts is $123,030, slightly higher than the national average of $122,490.
Some factors that contribute to the strong salaries for financial advisors in Massachusetts include:
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High concentration of wealth: Massachusetts has a high number of high-net-worth individuals and businesses that require financial planning services. This creates strong demand and enables advisors to command higher fees.
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Presence of major financial companies: Many large investment, insurance, and wealth management firms are headquartered in Massachusetts, especially in metro areas like Boston. These firms offer lucrative salaries to attract top advisors.
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Highly educated population: Over 40% of Massachusetts residents hold a bachelor's degree or higher. This leads to greater financial literacy and demand for personalized financial advice.
So while Connecticut and New York may have slightly higher average salaries overall, Massachusetts remains one of the most competitive and highest-paying states for financial advisors looking to build their careers and earning potential. The combination of wealth, industry presence, and an educated population create the ideal conditions for financial success.
How much do top earning financial advisors get paid?
Financial advisors in Massachusetts earn very competitive salaries, especially those working for top firms. According to recent industry salary reports:
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Financial advisors at Fidelity Investments in Massachusetts earn average salaries of $204,626 per year. This positions Fidelity as the top paying financial services firm in the state.
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Advisors working for Mercer Advisors in Massachusetts make approximately $186,337 per year on average. This ranks as the second highest financial advisor salary in the state.
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Professionals at Trilogy Financial in Massachusetts average $183,393 per year, making it another extremely lucrative firm to build a career.
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UBS and Bank of America Merrill Lynch also offer salaries exceeding $180,000 for financial advisors in Massachusetts seeking high earning potential.
The average salaries at top firms demonstrates the state's wealth and high wages available in the finance industry. Cost of living is high in metro areas like Boston, but incomes rise in parallel to support prominent lifestyles.
Overall, Massachusetts presents major opportunities for financial advisors catering to high-income residents in need of portfolio management and wealth planning services. The state's historic wealth translates into both substantial assets to oversee as well as salaries to earn.
How much do top wealth management advisors make?
Top wealth management advisors in Massachusetts earn very lucrative salaries, significantly above state and national averages.
According to the Bureau of Labor Statistics (BLS), the average annual salary for financial advisors in Massachusetts is $102,134. However, advisors in the top 25th percentile earn around $75,000 per year, while those in the top 75th percentile can make $131,000 per year or more. The very top financial advisors at elite firms likely earn even higher wages.
When examined monthly, the pay difference is quite substantial:
- Top 75th Percentile Salary: $131,000 per year or $10,916 per month
- Average Salary: $102,134 per year or $8,511 per month
- 25th Percentile Salary: $75,000 per year or $6,250 per month
The high salaries reflect the combination of high wealth and high demand in the state. Massachusetts has a very large concentration of high-net-worth individuals in need of sophisticated financial planning and investment advisory services. Top firms compete intensely to hire the most seasoned and pedigreed advisors to cater to this wealthy clientele.
In summary, while the average financial advisor salary in Massachusetts is over $100,000, those at the very top of the field can earn $130,000+ per year to manage money for the state's immense concentration of high-income residents in need of financial advisors.
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Breaking Down Finance Salaries in Massachusetts
Finance salaries in Massachusetts tend to be quite high compared to national averages. This is likely due to the state's large financial services sector centered around Boston, as well as the high cost of living in parts of the state.
Senior Finance Salaries in Massachusetts: A Closer Look
According to the Bureau of Labor Statistics (BLS), financial managers in Massachusetts earn an average salary of $148,250 per year as of 2021. This is significantly above the national average of $134,180 for the same role. Within Massachusetts, senior finance salaries can vary depending on specific roles and locations:
- Chief Financial Officers in Boston earn salaries averaging $201,010 per year
- Financial analysts in Springfield earn approximately $91,410 on average
- Personal financial advisors in Worcester make around $120,930 per year
Experience levels impact salaries - entry-level financial analysts earn closer to $68,000, while senior analysts with 5+ years earn well over $100k in Massachusetts.
Baystate Financial Advisor Salary Insights
Focusing specifically on financial/investment advisors in Massachusetts, the average salary is $125,010 according to the BLS as of 2021. However, expected salaries can vary significantly depending on firm, experience, client assets under management, and geographic location.
For example, a financial advisor working with high net worth individuals at a large Boston investment firm like Fidelity may earn $250k or more. While an entry level advisor at a small local firm in Western Massachusetts may start around $60-75k.
As advisors gain more experience and grow their book of business, salaries commonly increase to over $150-200k+ for those working with higher asset clients.
Finance Roles Beyond Advisory: Portfolio Administrators to Insurance Brokers
While financial advisory captures many headlines, Massachusetts also has demand for related finance roles like portfolio administrators, insurance brokers, and more. Salaries vary across these professions:
- Portfolio administrators in Boston earn approximately $68,610 on average
- Insurance brokers and sales agents make around $70,800 per year across Massachusetts
- Personal financial manager salaries average $119,920 statewide
Much like with advisory, factors like experience, firm/client size, and geographic location impact compensation. But many complementary finance roles exist with salaries from the high five figures into six figures.
Massachusetts vs. National Finance Salary Trends
The Bay State Premium: High Wages in a Historic Context
Massachusetts has a long history of wealth creation and high incomes that translates into strong wages for finance professionals. As an original 13 colony and center of early American shipping, commerce, and industry, Massachusetts accumulated significant capital over centuries. This established Boston and surrounding areas as hubs of banking, investment, and financial services.
Today, Massachusetts' $81,933 median household income ranks 3rd highest nationally. Its high concentration of elite universities, technology, biotech and medical research firms also bolsters high-paying professional services jobs. This historic wealth now sees Boston metro finance salaries about 10% above national medians according to the Bureau of Labor Statistics (BLS).
For example, Massachusetts financial advisors earn $123,490 annually - 13% more than the $109,430 US median. Top advisors in affluent Boston suburbs can make over $250,000 catering to high net worth clients. Massachusetts simply has higher incomes and more capital demanding specialized financial services.
The Role of High-Income Residents in Shaping Finance Salaries
Massachusetts was ranked America’s 3rd wealthiest state in 2022 based on income and assets. Over 6.5% of Massachusetts households have over $1 million in investable assets based on Federal Reserve data.
This creates strong demand for financial advisors, portfolio managers, bankers and insurance brokers earning salaries 20-50% above national averages. The top 10% of financial advisors earn $208,000 or more according to the BLS, by catering to Massachusetts’ unusually affluent residents and businesses.
With higher incomes and capital bases, Bay State firms and individuals demand more customized services - and pay premiums for specialized expertise. This shapes the state’s finance job market and enables salaries far beyond national averages.
Career Opportunities in Massachusetts' Finance Sector
Full-Time Finance Jobs: A Path to Financial Independence
Full-time finance positions offer competitive salaries and good benefits. According to the Bureau of Labor Statistics, the average annual salary for financial advisors in Massachusetts is $123,030, significantly higher than the national average. Top employers like Liberty Mutual Insurance, John Hancock, and Berkshire Hathaway Specialty Insurance provide full-time employees stability and room for advancement.
Finance professionals in Massachusetts earn wages well above state and national averages. With Boston's growing population of high-income residents in need of financial services, demand for qualified advisors continues to rise.
Part-Time and Remote Finance Roles: Flexibility and Wages
Part-time and remote work arrangements allow financial professionals flexibility while earning competitive hourly wages. Major financial services firms like Bay State Financial Services offer part-time advisor roles at $50-75 per hour. And remote positions provide work-life balance without sacrificing income.
The trend toward flexible arrangements has opened finance careers to those unable to commit to traditional office schedules. And wages for part-time employees remain high due to industry demand.
Entry-Level Finance Jobs: Gateways to the Industry
There are plentiful entry-level openings for recent graduates and those new to finance. Large investment firms and banks hire junior analysts at $60,000-$75,000 per year, with signing bonuses up to $10,000. Internships also provide pathways to begin careers in the field.
With proper training and work experience, entry-level professionals can advance to senior positions earning over $150,000 per year within five to ten years. The finance sector offers new entrants both lucrative starting wages and tremendous room for long-term growth.
Leading Financial Employers in Massachusetts
Liberty Mutual Insurance and John Hancock: Pillars of Massachusetts' Finance Employment
Liberty Mutual Insurance and John Hancock are two of the largest financial services companies in Massachusetts, offering stable employment and competitive salaries. As major pillars of the state's finance industry, they provide key job opportunities for accounting, finance, and insurance professionals.
According to salary data, Liberty Mutual Insurance offers average annual base salaries between $65,000 for entry-level financial analyst roles and $120,000 for senior portfolio managers. John Hancock provides similar compensation ranges for its finance and investment teams.
With large finance departments and established histories in the region, Liberty Mutual and John Hancock will likely continue driving finance employment and above-average wages in Massachusetts. Their ongoing hiring demand creates options for experienced professionals and new graduates alike.
Berkshire Hathaway Specialty Insurance and Financial Independence Group: Salary Benchmarks
As key regional players in insurance and wealth management, Berkshire Hathaway Specialty Insurance (BHSI) and Financial Independence Group (FIG) offer insight into current salary ranges:
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BHSI reports base salaries between $75,000 and $150,000 for its finance and actuarial teams in Massachusetts, with senior managers and directors earning towards the higher end.
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FIG posts positions for client service associates and financial advisors with average annual earnings of $60,000 and $120,000 respectively.
These ranges provide helpful benchmarks for finance salaries at mid-size firms in the state, showing opportunities for growth and advancement to six-figure compensation with experience.
Bay State Financial Services: Compensation for Financial Advisors
As a large Massachusetts-based wealth management group, Bay State Financial Services offers a snapshot of prevailing salaries for local financial advisors.
According to current openings, Bay State posts positions for associate advisors with average first-year earnings potential of $60,000 including commissions, increasing to over $200,000 for lead advisors with an established book of business. This indicates strong income potential for experienced financial planning professionals in the region.
Overall, the major finance employers highlighted here demonstrate the above-average salaries and earning potential available in Massachusetts - especially for those in high demand roles like financial analysts, investment managers, and client-facing advisors. The state's high salaries draw top talent from across the US.
Conclusion: Synthesizing Finance Salary Insights in Massachusetts
Recap of Finance Salaries and Historic Wealth in Massachusetts
Massachusetts has a long history of wealth creation and high incomes, especially in the finance sector. Key takeaways:
- Boston is a major financial hub with high salaries for financial advisors, investment analysts, portfolio managers, and other finance roles. Average salaries often exceed $100,000.
- Historic wealth from old money families, elite universities, medical institutions and successful companies contribute to high wages.
- The state's concentration of high-net-worth individuals ensures strong demand for financial services and competitive salaries.
Final Thoughts on Wages and Career Prospects in Massachusetts' Finance Sector
In conclusion, Massachusetts offers very promising career prospects and wages for finance professionals:
- With historic wealth and a clustering of elite firms, finance wages are likely to remain very competitive compared to other states.
- Young professionals can expect ample job opportunities servicing high-net-worth clients and supporting investment firms and banks.
- The future looks bright for those building careers in Massachusetts' finance and investment sector.
