Be a Financial Planner

A financial planner helps individuals and businesses meet their financial goals. It’s a great career if you are passionate about helping people and enjoy the ins and outs of finance. To become a financial planner, get proper training and education, then seek out relevant work experience. Depending on your situation, you may want to become certified.

Steps

Getting Proper Training

  1. Earn an appropriate undergraduate degree. You don’t need an undergraduate degree in financial planning. However, you should study in a field related to business or finance.[1] Many financial planners earn degrees in the following fields:[2]
    • Accounting
    • Business
    • Computer science
    • Finance
    • Marketing
    • Math
  2. Practice public speaking. Financial planners need experience communicating ideas orally. The best practice is to give speeches to small and large groups while in college.[3] You can give speeches on any topic you want. The key is to become comfortable talking to strangers.
    • Always practice answering questions as well. It takes practice to learn how to think on your feet.
  3. Strengthen your writing skills. Financial planners also need to communicate well in writing. While in college, take writing-intensive courses and volunteer for the campus newspaper. Learn how to write with brevity and clarity.[4]
  4. Improve your listening skills. A successful financial planner must be able to listen to what clients want.[5] In college, you can improve your listening skills by working for a crisis hotline. You’ll learn how to listen to people who need help and sharpen your ability to ask penetrating questions.
  5. Work in a small business. Small business experience is helpful if you eventually want to start your own firm. It doesn’t matter what business you work in. However, give it your all and try to work as closely as possible with the boss. You’ll absorb their methods of running a business, which will serve you well in the future.[6]
    • In college, you can work during the summer or part-time during the year. Pick something you enjoy—it doesn’t have to be finance related.

Gaining Work Experience

  1. Find an internship while in school. You’ll need real, hands on experience to make you an attractive candidate for jobs, and you can get this experience in an internship. Look for opportunities at fee-only financial planning firms. Compile a list of fee-only firms in your area and contact each firm on the list. Send a cover letter and a copy of your resume.
    • Other financial planning firms sell products, such as securities or mutual funds. There’s nothing wrong with that kind of work. However, most internships at these firms are really glorified sales jobs. You’ll be on the phone all day trying to sell products to consumers while learning little about financial planning.
    • If you’re having trouble finding fee-only firms, check the NAPFA and Financial Planning Association websites.
  2. Consider starting as a tax preparer. Investment planners need to be up-to-date on tax law, so getting a few years under your belt as a tax preparer can be a big advantage. Stop into H&R Block or another company and take their tax preparer exam.[7]
    • While working, focus on building relationships. You won’t be able to sell financial planning services while you work as a tax preparer. However, after you leave, you can rekindle those relationships and offer your clients financial planning services.
  3. Join the Financial Planning Association (FPA). You might have to network to find your first financial planning job. Meet current practitioners by joining your local FPA and attending events. Introduce yourself and always emphasize that you are looking for work.[8] The FPA also has a job board you can access.
  4. Search for an entry-level job. If you worked an internship, reach out and check whether the firm is hiring anyone after you graduate college. If not, you should check the job boards at your college or university. You can also send your resume to any investment company and ask if they are hiring.
    • Some firms have elaborate training programs that can last up to a year. During that time, you’ll work and at the same time train for your certifications.
    • Smaller firms might throw you into the pool and expect you to swim. However, you’ll get hands-on experience planning for clients, which is invaluable.
  5. Start your own business. At some point, many financial planners start their own firms. Starting your own financial planning firm is a lot of work, but you have more control over your business. When you start out on your own, try to partner with an attorney or a certified public accountant who can mentor you.[9]
    • Also research the costs of errors and omissions insurance, which protects you against malpractice suits. Your current employer is probably paying for it, but you’ll be responsible for paying the premiums when you become your own boss.

Becoming Certified

  1. Identify the certifications available. Financial planners might hold a variety of certifications. Some are required, depending on the work you do, and others are optional.[10] Common certifications in the U.S. include the following:
    • Certified Financial Planner (CFP). This credential is not required to work as a financial planner. However, it will improve your credibility with the public and help you move up the career ladder.
    • Series 66 license. Some financial planners sell mutual funds and other securities as part of their financial planning. If so, you need this license.[11]
    • Registered Investment Adviser (RIA). An RIA is someone who is paid for giving advice about which securities to invest in. You do not need to register as an RIA if you give general financial planning advice.
  2. Obtain the necessary work experience to become a CFP. You’ll need at least three to five years of full-time financial planning experience to qualify for the CFP.[12] If you take the exam before you have enough work experience, you’ll need to wait before you can hold yourself out as a CFP.[13]
  3. Complete a CFP program. Almost 300 colleges and universities offer programs in financial planning. These programs all cover the same material but differ considerably in duration and delivery method. For example, some programs consist of online courses while others are full university degrees. Find programs on the CFP Board website: http://www.cfp.net/become-a-cfp-professional/find-an-education-program.
  4. Pass the CFP exam. The CFP exam is seven hours long and consists of 170 multiple-choice questions. It covers investment, insurance, tax, retirement, and estate planning. The exam is offered three times a year and only about 50% of exam takers pass.[14]
    • Because the exam is so hard, you should prepare as best as you can. You might benefit by signing up for a review course that will help you digest all of the material.[15]
  5. Obtain continuing education for your CFP. Every two years, you must get 30 hours of continuing education in order to maintain your CFP credential. Your training must be in the following areas:[16]
    • Investment management
    • Insurance
    • Employee benefits
    • Tax planning
    • Retirement planning
    • Estate planning
  6. Earn a Series 66 license. In the U.S., this license will qualify you as an investment advisor representative. You must pass the Series 66 exam and the FINRA Series 7 exam, in either order. The Series 66 exam is a 100 question multiple-choice exam that covers financial reporting, risk, client investment strategies, and securities regulation.[17]
    • The FINRA Series 7 exam tests whether you have the knowledge necessary to work as a general securities representative. It covers topic such as the sales of corporate securities, variable annuities, municipal securities, and government securities. The exam has 250 scored questions.[18]
  7. Become a Registered Investment Advisor. You’ll need to pass the Series 65 exams, which covers federal securities law in the U.S. It has 140 multiple choice questions and takes three hours. You must then register with the applicable securities commission. If you manage more than $100 million in assets, you will register with the Securities and Exchange Commission (SEC). If you manage less, you register with your state’s securities regulator.[19]
    • If you act as an investment advisor to any investment company, you must register with the SEC regardless of how much you manage in assets.


Tips

  • A financial planner is a specific type of financial advisor, but there are other kinds of financial advisors, such as brokers or those who work in insurance. Consider all your options before choosing to become a financial planner.

Related Articles

References

  1. ↑ [v161594_b01]. 14 October 2020.
  2. ↑ https://wealthpilgrim.com/how-to-become-a-financial-planner/
  3. ↑ https://wealthpilgrim.com/financial-advisor-training-real-world-advice-from-a-successful-cfpr/
  4. ↑ https://wealthpilgrim.com/financial-advisor-training-real-world-advice-from-a-successful-cfpr/
  5. ↑ https://wealthpilgrim.com/how-to-become-a-financial-planner/
  6. ↑ https://wealthpilgrim.com/financial-advisor-training-real-world-advice-from-a-successful-cfpr/
  7. ↑ https://wealthpilgrim.com/the-fastest-path-to-great-financial-planner-jobs/
  8. ↑ http://time.com/money/4089475/get-started-financial-planner/
  9. ↑ http://www.investopedia.com/articles/financialcareers/07/start-your-own-firm.asp
  10. ↑ [v161493_b01]. 30 July 2020.
  11. ↑ https://www.forbes.com/2010/09/21/financial-advisor-jobs-employment-leadership-careers-career-change-10-advice.html
  12. ↑ https://www.onefpa.org/about/Pages/About-the-Profession.aspx
  13. ↑ [v161493_b01]. 30 July 2020.
  14. ↑ http://www.investopedia.com/articles/professionaleducation/07/cfp_exam.asp
  15. ↑ [v161493_b01]. 30 July 2020.
  16. ↑ https://www.onefpa.org/about/Pages/About-the-Profession.aspx
  17. ↑ http://www.investopedia.com/terms/s/series66.asp
  18. ↑ http://www.finra.org/industry/series7
  19. ↑ http://www.investopedia.com/articles/professionals/041013/becoming-registered-investment-advisor.asp
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