15 cities where financial advisors boosted their incomes the most

Financial advisors are operating in every town or city across the country, and some boosted their income by double digits last year, according to a new study.

If that news comes as a surprise to those operating in or outside of the 15 metropolitan areas listed in the below rankings tracking the biggest increases in median annual income for personal financial advisors, they should take the data released last month by financial services referral firm SmartAsset with a grain of salt. 

The numbers came from the U.S. Department of Labor's Bureau of Labor Statistics, which is certainly a reliable source for data other than some of its numbers on financial advisors. The agency's latest count of 327,600 advisors has gotten closer to the most commonly cited industry number of 300,000, but the refined figure remains more inclusive of insurance agents or sales brokers than is usually captured in most estimates.

The SmartAsset report nonetheless uncovers some interesting details on the number of advisors and their compensation in certain areas. As an update to lists from years past on the cities with the highest concentration of advisors and the metropolitan areas with the highest and lowest compensation, the rankings could prompt some expansion ideas for growing acquirers or advisory practices seeking to move into areas that may be underserved by the industry. 

The study could also remind less-experienced wealth management professionals facing the "high barrier of entry" to a career as an advisor that they can hike up their business and compensation over time "by virtue of good markets and referrals," according to recruiter Mark Elzweig of the Mark Elzweig Company.

"What I've seen over the years is that, for advisors who are able to stay in the business, many times their business just grows," Elzweig said. "Even if they're not the most proactive in terms of asking for referrals, many of them just have their business grow if their clients are basically happy with the service they're providing."

Besides the data on rising median income, the study revealed: 

• The towns and cities that sustained the biggest drop from a year ago (1. McAllen-Edinburg-Mission, Texas, at 42%; 2. Muskegon, Michigan, at 41%; 3. Battle Creek, Michigan, at 36%) 
• The ones with the highest overall income (1. New York City at $167,600; 2. East Stroudsburg, Pennsylvania, at $141,560; 3. Pittsburgh, at $129,220; 4. Bridgeport-Stamford-Norwalk, Connecticut, at $129,150; 5. Barnstable Town, Massachusetts, at $128,620 
• The place with the most advisors per capita (Durham-Chapel Hill, North Carolina, at 5.5 per 1,000 working residents) 
• And the areas that saw the biggest year-over-year increases in the number of advisors (1. Winchester, Virginia-West Virginia, at 100%; 2. Portland-South Portland, Maine, at 80%; 3. Bismarck, North Dakota, at 78%; 4. Las Cruces, New Mexico, at 75%; 5. Pittsfield, Massachusetts, at 67%).       

To see which metropolitan areas are home to the financial advisors who netted the largest increases in median income last year, scroll down the slideshow. And find Financial Planning's analysis of other SmartAsset rankings here:

• These 20 cities have the highest concentration of financial advisors
• The 20 best-paying cities for financial advisors
• The 20 worst-paying cities for financial advisors
• These are the 10 RIAs with the largest average client account
• The 10 fastest-growing RIAs, excluding the M&A dealmakers

Note: The below rankings are based on a report by SmartAsset called "Where Financial Advisor Income Grew Most – 2024 Study." The study crunched the numbers for 295 towns and cities examined in the data on the "personal financial advisor" profession from the U.S. Bureau of Labor Statistics for the last two years and ranked each place by the percentage increase in median income between 2022 and 2023.