As a Texan, you know that everything’s bigger in Texas. As the second-largest state in the nation by area (following Alaska) with the second-largest population (after California), the state is home to a huge swath of the southern United States.
According to the U.S. Census Bureau, the population increased 15.3% from 2010 to 2019, which is nine percentage points higher than the national growth rate of 6.3%. The median household income in 2019 was about $1K lower than the national median income at $61,874 in Texas vs. $62,843 in the U.S., but the Texas gross rent and mortgage costs were right on par with those nationally so we can compare cost of living rates effectively. Another great thing is that Texans don’t pay personal income tax, so you’ll get to keep that 3%-13% income tax that other Americans have to pay.
Unemployment is higher in Texas than it is nationwide at 7.2% in December 2020, compared with 6.7% across the U.S. However, that number is down from 8.1 percent in November 2020, according to the U.S. Bureau of Labor Statistics (BLS).
If you’re considering a move to Texas to pursue a career in finance or financial planning, keep reading to see which regions pay the most in the state. Additionally, you want to consider whether you’ll pursue employment as a fee-based advisor, which means that clients will pay you based on the amount of assets you’re managing, or a commission-based advisor, which means you’ll be paid based on commission when you buy or sell products for clients.
Texas has the second-highest number of Certified Financial Planners in the U.S., following only California, with 6,170 CFPs, 7% of the overall number of CFPs across the country, according to the CFP Board, which tracks state data. One thing to know about CFPs is that they have a fiduciary duty to their clients, which means they must act in the client’s best interest whether it aligns with their own business interest.
Texas salary data for financial advisors, stockbrokers and insurance agents is broken out for the following regions by the BLS: Abilene, Amarillo, Austin-Round Rock, Beaumont-Port Arthur, Coastal Plains Region of Texas nonmetropolitan area, College Station-Bryan, Dallas-Fort Worth-Arlington, El Paso, Hill Country Region of Texas nonmetropolitan area, Houston-The Woodlands-Sugar Land, Laredo, Lubbock, McAllen-Edinburg-Mission, San Antonio-New Braunfels, Sherman-Denison, Texarkana, Tyler, Victoria and Waco.
Financial Advisor Salary in Texas
The highest annual mean salaries in the state for financial advisors are in the border city of El Paso at $112,540, which is somewhat surprising given that Dallas/Fort Worth and Houston are the state’s largest cities of commerce, followed by San Antonio and Austin. The lowest salaries for advisors are in Laredo at an annual mean wage of $55,280.
Senior advisors with years of experience can earn salaries in the triple digits for all the regions that reported data other than Laredo, which reported the lowest 90th-percentile salary at $89,940 per year.
Stockbroker Salary in Texas
The annual mean salaries for stockbrokers in Texas vary widely across the state, from the low salary of $55,820 in Abilene to the highest salary of $110,760 in coastal Beaumont-Port Arthur. For brokers in the 75th percentile of their peers, salaries range from the mid $50K in El Paso to nearly $180K in Beaumont-Port Arthur.
Life/Annuity Producer Salary in Texas
The Dallas/Fort Worth metropolitan area employs the most insurance agents at 11,150, followed by Houston metro at 6,240. Dallas also is the highest-paying region at an annual mean salary of $89,330, followed by the home of Texas A&M University, Bryan/College Station with an annual salary of $71,760. The lowest-paying region was Beaumont-Port Arthur metro with an annual wage of $43,130, which is the opposite of the stockbroker salary reaching the top of the salaries in the state.
For experienced agents in the 90th percentile of the salary range, the Dallas metro ranks first again with a salary of nearly $200K, but it’s only $5K higher than the South Texas region of McAllen-Edinburg-Mission.
(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.)