Indiana is known as the Crossroads of America, and it’s for good reason – there are more miles of interstate roads in Indiana than any other state. But Indiana isn’t just a convenient place to drive through. In fact, it’s quite the exciting place to drive in, as Indiana is home to the Indianapolis 500 race, one of the largest annual Indy Car racing tournaments. But for those who don’t have a need for speed, there’s still plenty to love about Indiana, like the waterside Indiana Dunes National Park.
Indiana has a flat tax rate of 3.23%, meaning that all workers’ income is taxed at the same rate no matter how much you earn. Compared with other states, this rate is quite low, which is an incentive to start a financial planning business in the Hoosier State. Plus, the flat tax rate is more convenient when you file taxes than a graduated-rate income tax structure, which requires people to pay different percentages of income tax depending on their annual income. However, Indiana is one of 17 states as of 2019 that imposes local income taxes. These supplemental taxes range from 0.35% and 3.38% in Indiana; but, combined with the low state income tax of 3.23%, these rates are relatively average nationwide.
New financial planners in Indiana must also consider how they plan to provide their services. Most financial planners opt for one of two business structures. Some people charge a set fee for their work, which clients will pay regardless of what happens while you’re managing their money. But for stockbrokers who are navigating the ups and downs of the stock market, many opt to charge a commission; so, if your client makes money, so do you.
There are 1,574 certified financial planners in Indiana, accounting for 1.8% of CFPs nationwide, according to the CFP Board. Indiana is the 17th most-populous state in the U.S., so it makes sense that the state ranks 21st when it comes to the number of financial planners. The median household income in Indiana is $56,303 per year, falling below the nationwide average of $62,843; however, this discrepancy likely stems from the fact that the cost of living is lower in Indiana than in more populous, metropolitan areas across the nation.
Keep reading to learn more about your potential annual income as a financial planner in Indiana.
Financial Advisor Salary in Indiana
Oftentimes in the United States, the cost of living tends to be higher in urban areas, and thus, salaries increase, too. Indiana follows this trend – the two most profitable cities in which you can work as a financial advisor are Indianapolis and Fort Wayne, which are also the two most populated cities in the Hoosier state. In Indianapolis and Fort Wayne, you can earn an annual median salary of $103,600 and $99,190, respectively. On the lower end of the salary range are smaller cities like West Lafayette, where the median annual salary is $58,780. Still, this is on par with the statewide median.
Keep in mind that the hourly rates listed by the Bureau of Labor Statistics (BLS) are estimates. These figures are not indicative of what financial advisors in Indiana charge their clients.
Stockbroker Salary in Indiana
Out of the more than 4,500 stockbrokers in the state of Indiana, 3,060 live in Indianapolis, the capital. While the average annual salary for stockbrokers in Indianapolis is $93,710, the median is just $62,780, suggesting a wide range of fluctuation in the salaries of stockbrokers. However, in the 75th percentile and above, stockbrokers in half of Indiana’s regions can take home a six-figure salary.
Life/Annuity Producer Salary in Indiana
For insurance sales agents in Indiana, the annual average wage ranges between $39,510 in Bloomington and $81,600 in Evansville. But, in urban areas like Indianapolis and Fort Wayne, life/annuity producers in the 90th percentile can earn more than $100,000 each year. Like other jobs in the financial services sector, this indicates the potential for growth over time.
(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.)