Introduction
Thinking about becoming a financial advisor at 40? You’re not alone and you’re not too late. In fact, your life and career experience may give you an advantage. Many professionals successfully change careers in their 40s, often seeking more meaningful work, greater flexibility, or increased earning potential. At this stage in life, you likely have stronger communication skills, a valuable professional network, and real-world financial experience that can help you relate to clients.
Financial advising is a high-demand field with strong projected growth over the next decade. With people living longer and needing more help planning for retirement, the need for trusted financial professionals is on the rise. If you’re ready to make a career shift, becoming a financial advisor offers a path that’s both rewarding and sustainable.
What Education Do You Need to Become a Financial Advisor?
While a degree in finance, accounting, economics, or business can be helpful, it’s not strictly required to become a financial advisor. Many successful advisors come from non-financial backgrounds. However, you will need to become licensed. The most common requirements include:
- FINRA Series 7 and Series 66 (or Series 63/65): Required for selling securities.
- Certified Financial Planner (CFP®): Optional but highly respected and often leads to better job opportunities and higher earnings.
- State insurance license (if selling insurance products).
You can often study for and pass these exams within 6–12 months, especially if you already have a bachelor’s degree.
Is It Hard to Get a Job as a Financial Advisor at 40?
Breaking into the field can be challenging at first, but not impossible. Also, at this age, there are a lot of reasons why someone might want a career change. Many firms prefer career changers because they bring maturity, credibility, and a strong network. However, expect the initial phase to be competitive and demanding.
Entry routes include:
- Joining a firm as a trainee advisor (some offer training and support to new entrants).
- Becoming an associate or paraplanner to gain experience before advising clients.
- Starting independently and building your client base through networking and referrals.
To stand out, get certified, join industry associations, and consider working under an experienced advisor or firm with a training program.
Salary vs. Commission: How Do Financial Advisors Get Paid?
Financial advisors are paid in one or more of the following ways:
- Commission-based: Common for those selling investment products or insurance.
- Fee-only: Clients pay for advice, not products. More common in fiduciary firms.
- Salary + bonus: Some banks or larger firms offer salaried roles with performance bonuses.
Most advisors start in commission-based or hybrid roles. While income can be inconsistent early on, it becomes more stable and lucrative as your client base grows.
Earning Potential: Year 1 to Year 3
Here’s a realistic look at earning potential:
- Year 1: $30,000–$60,000 (including commissions or stipends). You’re building your book of business.
- Year 2: $50,000–$90,000 as you retain clients and build referrals.
- Year 3: $80,000–$150,000+ for high performers with a growing client base.
Income varies significantly depending on your location, specialization, firm, and ability to generate leads.
Is Financial Advising In-Demand?
Yes. According to the U.S. Bureau of Labor Statistics, employment for personal financial advisors is projected to grow 13% from 2022 to 2032, much faster than average. The aging population, the complexity of retirement planning, and growing wealth all contribute to rising demand.
However, it’s also competitive. Firms want advisors who can develop strong client relationships and demonstrate trustworthiness. The key to success lies in relationship-building, persistence, and specialization.
Tips for Becoming a Financial Advisor at 40
- Get licensed as soon as possible (Series 7, 66, or CFP®).
- Leverage your network and your existing relationships can become your first clients. This includes posting on Linkedin consistently and letting people in your circle know about your new career. You would be surprised how many people will show interest. Look into the step by step Guide for Becoming a Consultant when posting on Linkedin.
- Join a reputable firm offering training or mentorship.
- Focus on a niche like retirement planning, small business owners, or women investors.
- Stay persistent and understand that the first year is the hardest, but with consistency, rewards follow.
Final Thoughts
Becoming a financial advisor at 40 can be a smart and fulfilling career move. While the early years may be tough, the combination of high demand, flexible income potential, and the ability to make a real impact on people’s lives makes it well worth the effort. If you’re motivated, personable, and passionate about finances, this could be the perfect second-act career.
