How a financial advisor makes money

Sources

• The Jones Financial Companies, L.L.L.P. (Edward Jones), Form 10-K for the fiscal year 2025 · The Jones Financial Companies, L.L.L.P. (filed with the SEC), 2025
• LPL Financial Holdings Inc., Form 10-K for the fiscal year 2025 · LPL Financial Holdings Inc. (filed with the SEC), 2025
• Occupational Outlook Handbook: Personal Financial Advisors (jobs in 2025, pay in May 2025, projections 2025-35) · U.S. Bureau of Labor Statistics, 2025
• The Growth Fund of America, prospectus dated November 1, 2026 (Form 485BPOS) · Capital Group (filed with the SEC), 2026
• The Jones Financial Companies, L.L.L.P. (Edward Jones), Form 10-K for the fiscal year 2022 · The Jones Financial Companies, L.L.L.P. (filed with the SEC), 2022
• Investment Adviser Rulemaking (amendments to Chapter 460-24A WAC, effective November 21, 2026) · Washington State Department of Financial Institutions, 2026
• 15 U.S.C. 80b-5: Investment advisory contracts (Investment Advisers Act of 1940, section 205) · U.S. Government Publishing Office (govinfo), 2023
• WAC 460-24A-220: Unethical business practices of investment advisers (Washington Administrative Code) · Washington State Legislature, 2026
• FINRA Rule 2341: Investment Company Securities · FINRA, 2026

Every number

• 1.14%sec.gov ·2025 · Worked out from Edward Jones's 2025 annual report: advisory programs fees divided by average advisory programs assets. An average over all its advisory accounts, large and small.
• 1%sec.gov ·2025 · LPL Financial's advisory revenue on its own (corporate) advisory platform as a share of the assets in it, 2025 (the report says approximately this much).
• $1Mexample (example number: Simplified example: an account of a million dollars.) · Simplified example: an account of a million dollars.
• $11,400/yearexample (example number: Simplified example: Edward Jones's average fee rate applied to an account of a million dollars, rounded to the hundred dollars. Big accounts often pay a little less.) · Simplified example: Edward Jones's average fee rate applied to an account of a million dollars, rounded to the hundred dollars. Big accounts often pay a little less.
• 20,425 financial advisorssec.gov ·2025 · Edward Jones's financial advisors at the end of 2025.
• 79%sec.gov ·2025 · Edward Jones's asset-based fee revenue as a share of its total revenue, 2025: advisory programs fees plus service fees from fund companies and fees on client cash, all tied to the value of clients' money.
• $1.9Bsec.gov ·2025 · LPL Financial's trailing commission revenue, 2025.
• $4.5Bsec.gov ·2025 · LPL Financial's commission revenue, sales-based and trailing together, 2025.
• 87.44%sec.gov ·2025 · LPL Financial's production payout, 2025: the share of advisory fees and commissions paid out to its advisors, on average across all of them.
• 12.56%sec.gov ·2025 · Worked out from LPL Financial's production payout, 2025: what's left for the firm out of each dollar of fees and commissions, on average.
• 80–100%sec.gov ·2025 · The share of advisory fees and commissions an independent advisor typically receives, as LPL's annual report describes the industry, 2025.
• 30–50%sec.gov ·2025 · The share of advisory fees and commissions an advisor at a captive (employee) firm typically receives, as LPL's annual report describes the industry, 2025.
• $105,070/yearbls.gov ·2025 · Median yearly wage of personal financial advisors, May 2025 (employees; commissions and production bonuses included).
• $50,190/yearbls.gov ·2025 · The lowest-paid tenth of personal financial advisors earned less than this, May 2025.
• $357,020/yearbls.gov ·2025 · The highest-paid tenth of personal financial advisors earned more than this, May 2025.
• 10%bls.gov ·2025 · Share of personal financial advisors' jobs held by self-employed workers, 2025.
• $500,000example (example number: Simplified example: the money one client has with the advisor.) · Simplified example: the money one client has with the advisor.
• $5,000/yearexample (example number: Simplified example: one client's yearly fee: the client's money times the fee rate.) · Simplified example: one client's yearly fee: the client's money times the fee rate.
• $628example (example number: Simplified example: the firm's average share applied to one client's yearly fee.) · Simplified example: the firm's average share applied to one client's yearly fee.
• $1,416.67example (example number: Simplified example: one client's part of the practice's office rent and an assistant's pay.) · Simplified example: one client's part of the practice's office rent and an assistant's pay.
• $250example (example number: Simplified example: one client's part of the practice's software and market data.) · Simplified example: one client's part of the practice's software and market data.
• $200example (example number: Simplified example: one client's part of compliance help and liability insurance.) · Simplified example: one client's part of compliance help and liability insurance.
• $2,505.33example (example number: Simplified example: what's left of one client's fee for the owner, before taxes.) · Simplified example: what's left of one client's fee for the owner, before taxes.
• $4,000/yearexample (example number: Simplified example: one client's yearly fee for planning and advice. No official source publishes flat-fee prices.) · Simplified example: one client's yearly fee for planning and advice. No official source publishes flat-fee prices.
• $1,080example (example number: Simplified example: one client's part of the practice's office rent and part-time help.) · Simplified example: one client's part of the practice's office rent and part-time help.
• $160example (example number: Simplified example: one client's part of the planning software.) · Simplified example: one client's part of the planning software.
• $200example (example number: Simplified example: one client's part of compliance help and liability insurance.) · Simplified example: one client's part of compliance help and liability insurance.
• $2,560example (example number: Simplified example: what's left of one client's fee for the owner, before taxes.) · Simplified example: what's left of one client's fee for the owner, before taxes.
• $50,000example (example number: Simplified example: one client's purchase of a fund with a sales charge.) · Simplified example: one client's purchase of a fund with a sales charge.
• 4.5%sec.gov ·2026 · The Growth Fund of America, Class A shares: the sales charge on a mid-size purchase (the fifty-thousand to hundred-thousand dollar step), as a share of the offering price.
• 3.75%sec.gov ·2026 · The Growth Fund of America, Class A shares: the dealer commission on a mid-size purchase (the fifty-thousand to hundred-thousand dollar step), as a share of the offering price.
• $2,250example (example number: Simplified example: the fund's sales charge on the example purchase.) · Simplified example: the fund's sales charge on the example purchase.
• $1,875example (example number: Simplified example: the dealer commission on the example purchase.) · Simplified example: the dealer commission on the example purchase.
• $375example (example number: Simplified example: what's left of the sales charge for the fund's distributor.) · Simplified example: what's left of the sales charge for the fund's distributor.
• $235.50example (example number: Simplified example: the firm's average share of the dealer commission.) · Simplified example: the firm's average share of the dealer commission.
• $1,639.50example (example number: Simplified example: the advisor's share of the dealer commission, at the firm's average payout.) · Simplified example: the advisor's share of the dealer commission, at the firm's average payout.
• 0.25%sec.gov ·2026 · The Growth Fund of America, Class A shares: the most of the yearly distribution and service fee that may be paid to dealers as service fees, a share of the money invested each year.
• 13 monthssec.gov ·2026 · The Growth Fund of America: how long a statement of intention lets a buyer add up planned purchases for a lower sales charge.
• $30Mexample (example number: Simplified example: the money one practice manages for its clients.) · Simplified example: the money one practice manages for its clients.
• $75,000example (example number: Simplified example: a quarter of a year's fee on the example practice's money.) · Simplified example: a quarter of a year's fee on the example practice's money.
• 50 clientsexample (example number: Simplified example: the clients of one planner's practice.) · Simplified example: the clients of one planner's practice.
• $50,000example (example number: Simplified example: a quarter of the example planner's yearly fees.) · Simplified example: a quarter of the example planner's yearly fees.
• $800,000example (example number: Simplified example: the money clients put into funds with a sales charge in one quarter.) · Simplified example: the money clients put into funds with a sales charge in one quarter.
• $30,000example (example number: Simplified example: the dealer commission on the quarter's purchases, before the firm's share.) · Simplified example: the dealer commission on the quarter's purchases, before the firm's share.
• 17.9%sec.gov ·2025 · How much the S&P five hundred index of big US companies rose during 2025, as LPL Financial's annual report says.
• 17.9%sec.gov ·2025 · The S&P five hundred index's rise during 2025, as LPL Financial's annual report says, used as one year's market move.
• 19%sec.gov ·2022 · How much the S&P five hundred index of big US companies fell in 2022, year end to year end (Edward Jones's 2022 annual report).
• −19%sec.gov ·2022 · The S&P five hundred index's fall in 2022, year end to year end (Edward Jones's 2022 annual report), used as one year's market move.
• 0%example (example number: Simplified example: no market move, to start.) · Simplified example: no market move, to start.
• $112,000example (example number: Simplified example: a year of the example practice's costs: office, an assistant, software, compliance and insurance.) · Simplified example: a year of the example practice's costs: office, an assistant, software, compliance and insurance.
• $72,000example (example number: Simplified example: a year of the example planner's costs: office, part-time help, software, compliance and insurance.) · Simplified example: a year of the example planner's costs: office, part-time help, software, compliance and insurance.
• $400,000example (example number: Simplified example: the money in one of the planner's clients' accounts.) · Simplified example: the money in one of the planner's clients' accounts.
• $3Mexample (example number: Simplified example: the new money clients invest through the advisor in a year.) · Simplified example: the new money clients invest through the advisor in a year.
• $15Mexample (example number: Simplified example: the money clients hold in funds that pay the advisor's firm a trail.) · Simplified example: the money clients hold in funds that pay the advisor's firm a trail.
• $2,000example (example number: Simplified example: the price of a written financial plan.) · Simplified example: the price of a written financial plan.
• $30,000example (example number: Simplified example: a year's office rent for a small practice.) · Simplified example: a year's office rent for a small practice.
• $55,000example (example number: Simplified example: a year's pay for one assistant, before payroll taxes.) · Simplified example: a year's pay for one assistant, before payroll taxes.
• $15,000example (example number: Simplified example: a year of planning, client and market-data software.) · Simplified example: a year of planning, client and market-data software.
• $12,000example (example number: Simplified example: a year of compliance help, registration fees and liability insurance.) · Simplified example: a year of compliance help, registration fees and liability insurance.
• $24,000example (example number: Simplified example: a year's office rent for a small planning practice.) · Simplified example: a year's office rent for a small planning practice.
• $30,000example (example number: Simplified example: a year's pay for part-time help, before payroll taxes.) · Simplified example: a year's pay for part-time help, before payroll taxes.
• $8,000example (example number: Simplified example: a year of planning software.) · Simplified example: a year of planning software.
• $10,000example (example number: Simplified example: a year of compliance help, registration fees and liability insurance.) · Simplified example: a year of compliance help, registration fees and liability insurance.
• 0%example (example number: Simplified example: a planner who works on their own, with no firm taking a share.) · Simplified example: a planner who works on their own, with no firm taking a share.
• 60 clientsexample (example number: Simplified example: the clients of one advisor's practice.) · Simplified example: the clients of one advisor's practice.