How To Become A Financial Planner
Aiming for a career in as a financial planner can be a smart move today if you have what it takes. This is projected to be one of the fastest growing careers in the following decade, with an impressive predicted increase of 37%. The demand for financial advisors will soar as the number of retiring baby boomers increases. This hub will show you how to become a financial planner.
How Much Does A Financial Planner Earn?
Financial planners earned $66,000/year on average in 2006.
. . . had a median salary range is between $50,000 to $90,000 a year.
The highest paid financial analysts earned above $130,000 per year.
The “poorest” financial analysts earned $40,000 give or take.
. . . had a median salary range of $44,000 to $90,000 a year.
The bottom 10% “only” earned $32,000 annually.
The top 10% earned above $145,000 every year.
To sweeten the deal, financial planners also get commisions and bonuses.
If you are seriously considering a career in financial planning, you must at least have a bachelor's degree related to finance such as business administration, accounting, statistics, or economics. And it doesn't end there. Most companies will require that you have a firm grasp of corporate budgets, financial analysis and accounting policies and procedures.
The job market being very attractive, it is also very competitive. Getting an MBA is a good idea to get a better chance of getting hired as a financial planner.
If you're targeting a particular firm, you can get more information from their Human Resources Department. Ask them what they look for in prospective employees.
Internships are also a good way to get valuable experience that will help make your resume more attractive to prospective employers. Check with your college if there are available internships. If you can't find one, you can ask the help of the alumni association to introduce you to alumni who are now working as financial planners.
On top of formal education, you must have a number of licenses to work as a financial planner. Several of these licenses will come from the Financial Regulatory Authority (FINRA). Financial analysts must have an employer who will sponsor most of the required licenses. You won't have to be worried about these licenses until after you get hired.
For financial advisors, Series 7, 66 and 67 licenses are probably what you'll need to hold to practice this profession. You will also need to have a sponsor company to get a Series 7 license.
“Financial analysts assess the economic performance of companies and industries for firms and institutions with money to invest” while “Personal financial advisors assess the financial needs of individuals.”
Here's a very good advice from careertoolkits.com:
When looking over your class options, it’s also a good idea to take extra courses that focus on taxes, legal issues, and risk management. These are some of the issues you'll need to deal with every day when working with clients and directing their money to potential investments. Remember, this isn't something that you can just dive into and feel your way out of – the risks can be extremely high since you're working with other people's money. If you don’t understand what you’re doing, or if you’re at all confused about something, you could get into legal trouble if you misrepresent your understanding and ability level to your clients and end up losing their money.
Yes it will take a lot hard work on your part before you become a financial planner. However, the rewards are very well worth it.
- Financial Planning Association
Financial planners, CFPs, investment advisers and associated professionals get comprehensive financial planning information to help them develop their practice, attend conferences, network with colleagues and connect with consumers on finances.
- Certified Financial Planner Board of Standards Inc.
Certified Financial Planner Board of Standards, fostering professional standards in personal financial planning.
- Financial Planner Career Center
Financial planners help individuals and businesses make smart investments with their money.
- Home Page - NAPFA - The National Association of Personal Financial Advisors