Years ago, only the very wealthy had financial advisers who showed them ways to preserve and grow their assets. Then, with fixed-benefit pension plans disappearing, it was up to the individual to grow his estate and plan for retirement. This led to the creation of an entirely new profession, financial advisers, to care for the financial needs of the individual.
Education
While it is not necessary to have a college degree, having one will give you a distinct advantage in building credibility with your clientele. Furthermore, if you take courses in finance, investments, statistics, business or law, you will be that much more ahead of someone who concentrated in other fields. And you'll find it necessary to continue learning more about finance since it is such a fluid subject. If you are constrained by your job, you might explore opportunities to study at night or online.
Experience
You can have all the targeted education available, but to be a successful financial planner, you'll need to work in an allied field for some time to form business relationships that you can look to for clients. Many would-be financial planners begin their careers selling insurance, as a stock broker or as a lawyer or accountant before embarking on financial planning. Real-world financial experience, coupled with targeted education, will build financial planning skills as well as give you confidence.
Certified Financial Planner Designation
To further enhance your qualifications as a financial planner, consider acquiring the designation Certified Financial Planner, or CFP, from the Certified Financial Planner Board of Standards. The Board of Standards has developed a rigorous curriculum of courses that includes investment and estate planning, taxation, retirement planning, employee benefits, statistics, and debt management. Once you have completed them, you will need to pass a comprehensive examination before you receive your designation.
Chartered Financial Consultant Designation
This course of study is administered by The American College in Pennsylvania, and requires you to take eight courses followed by a qualifying examination. In addition, students must keep up with their profession through continuing education. In most cases, it is better to obtain your CFP designation before taking this course.
Avoid Conflicts of Interest
Many financial planners represent companies that have products they use to implement the plans they have recommended. Those sales yield more income than they receive from the planning process. Those financial planners face a conflict of interest since they, however unwittingly, make recommendations that call for those products. In the long run, it may be a better strategy to avoid such corporate alliances and remain an objective adviser.
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