When you think of Hawaii, you might imagine a tranquil paradise – living on the beach, surfing in the Pacific Ocean, and basking in the sun. Of course, reality is never as luxurious as we imagine, but Hawaii is still a beautiful, unique place to live, even if you don’t get to the beach as often as you would in your dreams. The most recent territory to join the United States, the island chain of Hawaii is split into four counties: Hawaii, Honolulu, Maui, and Kauai. It’s the only state in the U.S. with a tropical rainforest, and there are even active volcanoes like Haleakala and Kilauea.<!- mfunc feat_school ->
With less than 1.5 million residents, Hawaii is one of the least populous states in the union; but, no matter where you live, there’s always demand for financial planners. There are only 297 Certified Financial Planners in the Aloha state according to the CFP Board. Like 31 other states and the District of Columbia, Hawaii uses a graduated-rate income tax system. That means that depending on your annual income – from $2,400 to more than $200,000 – you’ll be taxed between 1.4% and 11%. The largest tax bracket falls between $48,001 and $150,000, where income tax is 8.25%. Nationally, this falls on the higher side – but, you may decide this higher tax rate is worth the benefit of living in paradise.<!- mfunc search_btn -> <!- /mfunc search_btn ->
When you set up your business, it’s important to decide what services you hope to provide, and how you’ll charge clients for your services. Some financial advisors charge a fee for their work, regardless of whether they effectively manage the money of their clients. Many advisors offer their expertise on commission – if your client makes money, you take home a portion of their profit, too. Plus, as a CFP, you must be a fiduciary, meaning that you’ll always act according to your client’s best interests, not your own.
In 2019, Hawaii residents’ median income was $81,275, which is higher than the national figure of $62,843. In Hawaii County specifically, the median income was on par with the rest of the country at $62,409. But, the majority of Hawaiians live in urban Honolulu on Oahu Island. Keep reading to learn more about the salaries of different professions in the financial services sector in Hawaii.
Financial Advisor Salary in Hawaii
TheBureau of Labor Statistics divides salary info in Hawaii according to three regions: the Kauai nonmetropolitan area, the Lahaina region in Maui County, and the primary metropolitan area, urban Honolulu. Interestingly, the annual mean wage was lowest in Urban Honolulu, at $79,250, while the highest annual mean salary was $112,610 in Lahaina – but, across each region, the hourly and annual median wages were about the same, at $30 per hour and about $60,000 per year respectively. Since there are fewer than 700 financial advisors in Hawaii, the data is more prone to volatility when calculating an average, so the median numbers are likely more reliable in this case.
Stockbroker Salary in Hawaii
As of 2019, there were 730 stockbrokers in Urban Honolulu, yet only 40 stockbrokers each in Kauai and Lahaina. The annual median wage was slightly higher in Lahaina than Honolulu, at $59,900 compared to $52,120. However, in each region, stockbrokers in the top percentiles have earned six-figure salaries.
Life/Annuity Producer Salary in Hawaii
For insurance sales agents, it seems that those who work in more populous regions have a greater potential for higher earnings. Life/annuity producers in Honolulu earned a median salary of $51,790, while this rate dropped to $36,870 in Kauai. However, cost of living is likely higher in an urban region like Honolulu, so these salaries likely yield a similar standard of living.
(Salary and job growth data reported by the U.S. Bureau of Labor Statistics in May 2019 for personal financial advisors; securities, commodities and financial services sales agents; and insurance sales agents. Figures represent national data, not school-specific information. Conditions in your area may vary. Information accessed February 2021.)