If you’re interested in how to become a financial planner, then there are a few important decisions to make before embarking on this career. The U.S. Bureau of Labor Statistics estimates that financial planners will enjoy a steady to fast growth rate over the next decade. By 2022, the job availability will increase by 27 percent. Financial advisors earn an average of $67,520 per year with a bachelor’s degree and limited prior work experience. “Advisor” and “planner” may be used interchangeably to describe professionals who offer financial planning assistance, but a financial planner actually goes through additional training to become certified as discussed below.
Personal Life Experience
According to Forbes, financial planning is a great career for people who are changing jobs, because “it’s a job where having some life experience under your belt really helps.” From selling your home to investing in a new mutual fund opportunity, people make significant financial decisions on a regular basis. If you find that you have a keen sense about sound investments and effective savings strategies, then becoming a financial advisor will be an easier transition for you. Unlike other careers involving money, financial advising takes a more personal, one-on-one approach because you’re dealing with a sensitive area in people’s lives. Having the foreknowledge to help people effectively manage their money proves useful in this line of work.
Educational Training
Financial advisors need a bachelor’s degree to start, because most financial planning firms require a minimum amount of knowledge in areas such as economics, accounting, math and business. Some colleges offer specific programs for becoming a financial advisor, but you don’t need to major in this field to start working. If you have a strong history with personal finance and a bachelor’s degree in economics, for example, then firms will be more inclined to hire you in entry-level positions. A sales background may also come in useful as a financial advisor because part of the job requires selling certain investment funds to clients, but financial planning is not a career that focuses on sales.
Work Experience and Certification
You may be able to start work as a financial advisor with limited educational training in the field, but becoming a financial planner requires more work. To qualify as a Certified Financial Planner with the Certified Financial Planner Board, applicants must earn a bachelor’s degree, work in a planning firm for at least three years, pass the certification exam and confirm their commitment to a code of ethics. According to Forbes.com, more than 40 percent of applicants fail the test. Becoming a CFP isn’t easy, but the long-term benefits include a larger client base and more specialized knowledge in the field.
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Becoming a financial planner offers a good career option for those with life experience or those who are familiar with aspects related to the field such as money management, investment portfolios and savings accounts. You don’t need to start a career as a financial planner with vast knowledge of different financial scenarios, but relating to clients is much easier when you can empathize with their situations. If working with money and clients appeals to you as a profession, then find out how to become a financial planner by visiting the Certified Financial Planner Board of Standards website for detailed guidelines on this lucrative career.
