How to Become a Financial Planner

Financial planners help individuals and families create strategies to manage money and prepare for retirement. Becoming a financial planner involves developing strong client relationships and providing comprehensive, long-term financial advice. Many financial planners earn the certified financial planner (CFP) credential to increase their earning potential and advance their careers.

Financial planners need strong communication, analytical skills, and integrity to succeed. There’s no single route to becoming one, with some individuals starting in banking or insurance, while others begin in accounting.

While there’s no formal degree requirement to work as a financial planner, most employers prefer at least a bachelor’s degree in a related field, such as finance, economics, business administration, or accounting. A four-year degree provides essential knowledge in investments, markets, and client services that will help you succeed.

Although a degree isn’t strictly required, it can affect your career opportunities. A degree in finance or economics may position you for roles with higher responsibility, such as portfolio management or investment strategy. Specialized concentrations in areas such as tax planning or estate planning can also make you more competitive in niche markets.

Unlike professions such as law or medicine, financial planners are not required to hold a specific national license to use the job title. That said, if you want to sell securities or insurance products, you must obtain appropriate licenses, which vary by state and product type.

Common examples include the FINRA Series 7 and Series 65 exams for securities, or a state-issued insurance license for selling life or health insurance. While credentials may not be legally required for all planning roles, employers and clients often view them as a benchmark of professionalism. We look at optional credentials in the next section.

Although not necessary, many financial planners pursue advanced credentials to strengthen their expertise and career prospects. The most prominent is the CFP designation, offered by the Certified Financial Planner Board of Standards, Inc. The CFP requires a bachelor’s degree, completion of board-approved coursework, passing a rigorous exam, and several years of professional experience.

Other respected designations (e.g., ChFC and CFA) also require extensive coursework and exams in areas such as portfolio management, investment strategy, and advanced planning. Graduate degrees like an MBA or a master’s in finance are also optional, but can open doors to leadership roles.

Financial planners may pursue certifications and advanced degrees to enhance credibility, improve job security, and often command higher salaries — especially with employers in investment firms, wealth management, and estate planning.

Before becoming a financial planner, you will likely need to gain some on-the-job experience in an entry-level role such as a financial analyst, insurance associate, or client services representative. Most financial planners have 1-3 years of experience and familiarity with financial products, compliance standards, and direct client interaction.

A strong educational background is essential, but experience demonstrates the ability to apply theory in real-world settings. Some programs combine both, allowing you to complete coursework while earning supervised hours through internships and practicums.

Becoming a financial planner can be highly rewarding, but it’s not without challenges. Many enter the field after working in banking, accounting, or insurance, and the transition requires persistence, networking, and often advanced credentials.

Early years can bring long hours, pressure to build a client base, and the need to continually prove your expertise. Still, the career offers strong long-term potential. Financial planners enjoy the opportunity to work closely with clients, guide important life decisions, and often achieve flexibility in schedules or self-employment. Compensation also tends to increase with experience, certifications, and specialization.

If you value solving problems, building relationships, and learning across your career, financial planning could open doors to leadership roles in wealth management, estate planning, or independent practice — all worthy endeavors.

Finding a financial planner job often involves a mix of networking and traditional applications. Attend career fairs, seek guidance from mentors, and connect with professional organizations such as the Financial Planning Association and the National Association of Personal Financial Advisors. Annual conferences provide networking opportunities, while online job boards make openings accessible nationwide. Some boards to review include:

Working as a financial planner can pave the way to leadership and strategic roles with broader oversight, higher salaries, and greater responsibility. Two common advancement paths include: