Individuals interested in careers working with money and finance often choose financial planners as a career choice. Like financial advisors or financial counselors, financial planners are trained professionals who help others plan for their financial future. They may work with different types of finances or choose to specialize in one specific areas, such as education funding or retirement planning. Here is an overview of financial planners, including what they do and how to become one.
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What They Are
Financial planners are trained professionals who help others manager their money. They do this by studying market and finance trends, stock markets, bonds and current interest rates. They may specialize in a certain area of financial planning, such as education funding, retirement planning or something similar. Financial planners develop a comprehensive plan aimed at helping clients reach their long-term goals. They assess the client’s current financial situation and make recommendations on how they can improve it. Their duties include:
- Explaining different financial investments
- Meeting with clients to discuss their finances and goals
- Monitoring client accounts and making recommendations
- Researching new financial investment possibilities
- Helping clients plan for specific events
- Examining financial statements
How to Become One
To become a finance planner, a candidate should have some sort of training. This may be in the form of an associate degree, a certificate program, a post-graduate program or a master’s degree. In most cases, a bachelor’s degree is the most common degree level for financial planners. The student may major in finance, accounting, economics or business. Course topics in these programs include estate planning, investments, accounting, taxes and risk management. After completion of the program, aspiring financial planners often complete an internship.
Candidates who want to specialize in financial planning generally obtain certification. The Certified Financial Planner (CFP) certification is obtained through the Certified Financial Planner Board of Standards. To be eligible for this certification, the individual must have at least a bachelor’s degree, must have three years of related work experience and must past the certification exam. Candidates must also meet the code of ethics requirements. The CFP exam covers the basics of financial planning, risk management, income taxes, insurance planning, real estate planning, retirement planning and debt management.
Career Outlook
The U.S. Bureau of Labor Statistics does not offer specific job growth numbers for financial planners but does offer it for financial advisers, and financial planners fall under this group. Financial advisers are expected to see a job growth of 7 percent during the 2018-2028 decade. As the aging population continues to require financial planning for retirement investments, financial planners will continue to be in demand. As of May 2018, these professionals earned a median annual wage of $88,890.
Financial Planners vs Financial Advisors
Although these two terms or job titles are very similar and are often used interchangeably, they’re actually two different professions. Whereas financial advisors help people manage their money, financial planners help people meet their financial goals. This may sound like the same thing, but they’re slightly different. However, financial planners are a type of financial advisors and typically specialize in a certain area of financial advising or planning. A true financial planner generally uses the CFP credential.
Being in a role where you can help others be financially successful and rewarding. According to CNN Money, financial planners is consistently ranked among the Best Jobs in America. It’s easy enough for interested individuals to be part of this by choosing to become financial planners.
