Nestled between the Missouri and Mississippi rivers is the state of Iowa, a picturesque midwestern state. Each year at the Iowa State Fair, you can encounter a 600-pound cow sculpture made of butter – but aside from that novelty, Iowans have natural wonders like the Crystal Lake Cave, Pikes Peak State Park, and cascading waterfalls at Dunnings Spring Park right in their backyards. Additionally, Iowa is home to large universities such as the University of Iowa and Iowa State University, bringing in a constant influx of young, educated professionals.
Like most states, Iowa’s state income tax varies depending on your annual income. These rates range between 0.33% and 8.53%, with the largest tax bracket ranging from $49,140 to $73,710 at 7.44%. According to the Certified Financial Planner (CFP) Board, there are 775 certified financial planners in Iowa, ranking 29th out of all states and territories in the U.S. But this makes sense, given that Iowa is the 32nd most-populous state. Still, these figures show that there is a demand for financial planners in Iowa – no matter where you live, financial services will always be needed.
Before starting a financial planning business in Iowa, there are many factors to consider: what line of work do you wish to pursue? Do you wish to charge clients on a commission basis or at a fixed rate? Some financial advisors charge fees for their services, even if they are ultimately unsuccessful in meeting clients’ needs. In other cases, advisors offer their service on a commission basis – if your client makes money, you earn a percentage of their earnings, too. It’s also important to note that when you work as a CFP, you are a fiduciary. That means you must prioritize the financial success of your client above your own.
According to the United States Census Bureau, there are more than 3 million residents of Iowa, who earned a median income of $60,523 in 2019. This is just below the national average of $62,843. However, Iowans likely have a lower cost of living than people living in densely populated, metropolitan cities like New York City, New York or Los Angeles, California.
Read on to learn more about your potential earnings while working in Iowa’s financial sector.
Financial Advisor Salary in Iowa
Based on data from the Bureau of Labor Statistics, more than 1,500 people are employed as personal financial advisors in Iowa. These professionals are spread out across the many nonmetropolitan areas in this largely rural state, but the highest number of financial advisors reside in urban areas like the capital of Des Moines, the historic city of Dubuque, Cedar Rapids or Iowa City, home to the University of Iowa. The city with the highest annual median wage for financial advisors is Dubuque, where the median salary is $91,290. While Davenport and Sioux City are next highest, with $78,940 and $75,770, respectively.
Stockbroker Salary in Iowa
From state to state, the salary for stockbrokers can vary wildly. If stockbrokers work on a commission basis, much of their profits from year to year can depend on their ability to predict the stock market. So, in most cities in Iowa, the annual mean salaries are higher than the medians for each city. Oftentimes, salaries are higher in urban cities, since the cost of living may be higher in places like Des Moines, as opposed to rural towns in the Iowa plains. But the salaries of stockbrokers in Iowa are a bit more inconsistent, as the highest average salaries appear in nonmetropolitan areas. Most financial planners working as stockbrokers reside in Des Moines, where the average annual salary is $62,640, which is approximately the national average per household.
Life/Annuity Producer Salary in Iowa
In Iowa, median salaries for insurance sales agents range from about $42K to $57K. However, the highest-earning life/annuity producers in the 90th percentile can earn up to $145K per year.
(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.)