How to Become a Financial Planner

Financial planners assist clients in managing their finances by developing financial strategies, offering investment advice, and creating tax plans. Planners review a client's assets, liabilities, and current income to offer customized guidance.

Certified personal financial advisors usually work with investments, numbers, and people. Individuals with math, networking, and logic skills may enjoy financial planner roles.

You can start on the path of becoming a financial advisor by obtaining a bachelor's degree, studying investment topics, and gaining relevant work experience. The following page offers in-depth steps on the profession, including education and licensure requirements.

Steps to a Financial Planner Career

Required Education for a Financial Planner

Companies may expect financial planners to possess bachelor's degrees, at minimum. Hiring managers may prefer an education in accounting, finance, or business management, but most backgrounds qualify. Individuals who study a relevant major may better understand essential financial planning topics, including budgeting, investments, and insurance.

Employers also welcome applicants with advanced degrees. Master's- and doctoral-level candidates can demonstrate their expertise through their prior education. Advanced degree graduates may have additional career opportunities through initial roles and promotions.

Corporations receive many applications for open job listings, but individuals with relevant advanced degrees can stand out among the competition. Clients may also feel comfortable choosing a financial planner with a strong educational history, potentially resulting in an increased salary and upward mobility potential.

Required Credentials for Financial Planners

Financial planners may require specific licensures depending on state regulations and services offered. The Financial Industry Regulatory Authority, a congressionally authorized organization, manages most investment licenses. The following list covers potential licenses for financial planners.

• Series 6: This license allows financial professionals to sell certain investments, including mutual funds, variable annuities, and specific municipal funds. Series 6 licensees cannot sell individual stocks or bonds. A licensure applicant must be sponsored by a company, pass an exam, and complete CPE credits.
• Series 7: The Series 7 license allows financial professionals to sell a wider range of investments than the Series 6, including individual stocks, bonds, and options. Prospective licensees must complete a Security Industry Essential exam, a Series 7 exam, and CPE courses.
• Series 66: This license allows you to provide investment advisory services. To obtain Series 66 licensure, you must complete a multiple-choice test, hold a Series 7 license, and complete CPE courses.

Optional Certifications and Degrees

Financial planners can pursue optional certifications, including certified public accountant, chartered financial analyst (CFA), and certified financial planner (CFP) designations. Financial planners may choose the CFP as it directly relates to their career. Corporations may prefer to hire CFPs, which increases job and salary prospects for certified individuals.

The CFP Board of Standards sets the requirements to receive CFP certification. Candidates must complete the following requirements:

Each CFP must renew their registration annually by submitting an online form and paying a fee. They must also complete 30 hours of CPE, including two hours of ethics courses, every two years.

Required Experience for a Financial Planner

Individuals can apply to financial planner positions without experience but may have additional opportunities with relevant work history or certifications. Corporations may accept advanced degrees in place of work experience and vice versa.

Companies may consider financial planning, investment planning, or accountancy work as acceptable experience. Entry-level roles that teach these skills include financial analyst, financial assistant, and bookkeeper.

Prospective financial planners can gain work experience through an accounting internship or full-time position. Employers may wish for applicants to meet the minimum CFP experience standard of 6,000 hours.

Should I Become a Financial Planner?

Successful financial planners can work one-on-one with clients to influence major financial decisions. However, this role can be stressful and include strict regulatory measures. The following list discusses the pros and cons of being a financial advisor.

The Job Hunt

Job-seekers can maximize the probability of finding suitable roles by combining strategies. Individuals can network by attending job fairs, finance-focused events, and conferences. Schools, local financial organizations, and CPE board websites may offer lists of upcoming events.

You can also apply for jobs online. Companies may post jobs on their home pages, job boards, or niche financial websites. Explore the following list of sites and resources as you research available roles.

• AccountingJobsToday.com: This website offers a job board focused on accounting roles and career resources. Applicants can search for jobs by industry, job function, or state.
• American Accounting Association: The AAA, founded in 1916, has the largest concentration of accountants in academia. Its job board provides listings for academic and non-academic accounting roles.
• LinkedIn: LinkedIn's job board offers customized searches, including remote work, experience level, and location. Applicants can review corporate pages and reach out to hiring managers.

Upward Mobility

Financial planners gain valuable insights, connections, and experience during their careers. These professionals can pursue more advanced positions, as detailed in the following section.

Portfolio Manager

Portfolio managers create investment strategies for individuals, corporations, and foundations. While financial planners focus on individuals, portfolio managers may control larger funds. Most corporations require at least a bachelor's degree to become a portfolio manager, but some companies require a master's degree.

Average Annual Salary (August 2024): $99,470

Chief Investment Officer

These professionals complete various financial tasks, including investment strategy development, budgeting, and communicating with internal and external advisors. A CIO often has at least a bachelor's degree in a relevant field and 10 years of business experience.

Average Annual Salary (July 2024): $186,480

Questions About the Financial Planner Career Path