Key Takeaways:
- Most financial advisors have a bachelor’s degree in finance, economics, business, or a related field. Some may also have degrees in areas like accounting or law. While a master’s degree is not a necessity, it can help advance your career.
- Start in entry-level positions like financial analyst, junior financial advisor, or in a related field such as banking, insurance, or sales. Internships in financial firms can provide valuable hands-on experience and networking opportunities.
- The CFP designation is one of the most recognized certifications for financial advisors. It requires completing coursework, passing an exam, and having relevant work experience.
- To sell financial products like securities, you need to pass exams such as the Series 7 (General Securities Representative) and Series 66 or Series 65 (Uniform Investment Advisor Law Exam).
- Associations like the Financial Planning Association (FPA) offer networking opportunities and resources.
In today’s fast paced marketplace, many individuals and entities need help with their finances, and those seeking to work in the filed may inquire about how to become a financial advisor.
Financial advisors are business professionals who provides guidance to clients on various financial topics. They offer a variety of different services, including estate planning, investment management, retirement planning, and income tax preparation. They gather many different types of information to assist clients, such as the clients’ goals and comfort with risky decisions, economic trends, and regulatory changes.
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Financial advisors establish a trustworthy relationship with clients and respond to their questions regarding many different financial topics. They work in many different settings. Many work for large companies and focus on a particular area, like investments or insurance, others work for small firms. Some are self-employed and market their services to potential clients.
There are certain steps on how to pursue this position, including earning a bachelor’s degree, completing the Series 65 license, and obtaining professional certification.
Earning a Degree and Training
Earning a minimum of a bachelor’s degree in finance, accounting, business, or other related field. Students typically take classes in investments, estate planning, taxes, and risk management. Many individuals complete internship experiences to apply what they learned in the classroom in the real world.
Many colleges and universities have strong relationships with financial firms and other companies that offer training opportunities for students seeking employment in the field. Some professionals complete MBA degrees to remain competitive in the profession. Some large companies offer complete training programs that help employees gain the necessary work experience to prepare for licensing and certification examinations.
Become Licensed or Certified
A professional license or certification is required to work in many positions, especially those dealing with investments. A variety of certifications are available for these financial professionals, and many pursue them after they have gained at least three years of working in the field. Certification usually requires specialized training, a comprehensive examination and continuing education on a yearly basis.
The National Association of Personal Financial Advisors offers the following certifications: Certified Financial Planner, Chartered Financial Consultant, Chartered Financial Analyst, and Personal Financial Specialist. The Financial Industry Regulatory Authority offers a variety of qualifying examinations for securities professionals to engage in certain areas of business. Common examinations for financial advising professionals include the Series 7 General Securities Representative Examination, Series 65 Uniform Investment Adviser Law Examination, and the Series 66 Uniform Combined State Law Examination.
Additional Requirements
Additional skills are needed for individuals seeking to enter the profession. Excellent communication skills are essential to help people evaluate their finances and available options. These professionals must have the ability to communicate and explain complex ideas and word them in simple terms for complete understanding. Patience and stamina are also needed as these professionals often work long hours. Good sales skills are also helpful to gain new clients and convince them to invest their money in various products and services.
Working as a financial advisor is a great choice for individuals seeking to help individuals with wisely managing their money. It is a lucrative and fast growing career, with an estimated growth of 27 percent by the year 2022. This dynamic and quick paced career is ideal for those seeking employment in the financial advising field.
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