Why Bank on a Career as a Financial Planner?

Published on: February 8, 2023

Have you always been intrigued by stocks, bonds and investments? Do you enjoy experimenting with your personal finance and watching your money grow based on decisions you've made? If so, you may find a career as a financial planner to be highly rewarding. You'll need education and specialized job training to make this future a reality.

What Does a Financial Planner Do?

A financial planner is someone who develops plans to help clients manage their money. This could include individuals, corporations or families. Often, a financial planner will specialize in a single area of finance, such as investing or retirement, and will work with these types of clients exclusively. Their ultimate responsibility is to help clients reach their financial goals, which usually involves long-term saving or investing.

Financial planners have a lot of responsibility, which is why they must have a keen understanding in areas including tax law, risk management, estate planning, asset allocation and more. They must be able to assist clients with all aspects of their finances, such as:

• Budgeting
• Saving
• Investing
• Tax planning
• Retirement
• Insurance

If this sounds like a career you would enjoy, earning your bachelor's degree in financial planning could be right for you. 

Financial Planner Vs. Financial Advisor: What's the Difference?

Financial planning and financial advising are closely related, but there are some differences. For instance, a planner plans. That's to say, they devise strategies clients can use to reach their short- and long-term financial goals. Advisors, conversely, operate differently. Clients pay them a fee to perform specific money-related tasks. These could include selecting investments or buying and selling stocks. 

Anyone can call themselves a financial planner or advisor, but before choosing someone to help them manage their money, savvy clients will choose to work with professionals with college degrees, certifications and licenses. 

Where Do Financial Planners Work?

Many financial planners work in financial institutions, such as banks and credit unions. Others may work for insurance companies, commodities brokers or investment firms. Often, financial planners work for themselves, out of a private office. 

To be successful in this role, you'll need good communication skills, and it may help to be outgoing. This is a good career for extroverts because it usually involves meeting with different clients on a daily basis.

How Long Does It Take to Become a Financial Planner?

Usually, you'll need at least a four-year college degree to become employed as a financial planner. This means you'll need to earn your Bachelor of Science in Financial Planning or a related field. You may also decide to pursue certification after earning your degree. This will enable you to become a CFP, or certified financial planner.

As a certified financial planner, you'll be considered a designated expert in the field. To earn this designation, you must pass the exam administered by the Certified Financial Planner Board of Standards. You must also commit to ongoing educational classes to keep your certification up to date.

Many financial planners pursue certification because it makes them seem more trustworthy and employable, but it's not a requirement to work in the field of financial planning. 

Financial Planner Education Requirements

Financial planners usually need a minimum of four years of college following high school. This is equivalent to a bachelor's degree. You'll want to earn your degree in financial planning or a related field such as accounting or business. If you plan to pursue certification after graduation, you must complete specific coursework required by the Board. This coursework includes classes in: 

• Income, savings and tax planning
• Investment planning
• Risk management and insurance planning
• Retirement and estate planning

There may be other classes you're required to take to become certified, so check with the Certified Financial Planner Board of Standards before choosing your college major and minors. Or talk with an advisor from your school's financial planning program. 

Steps to Becoming a Financial Planner

Does financial planning sound like a career you would enjoy? If you're ready to begin your journey to this rewarding and fulfilling profession, you must complete a step-by-step process to help get you there. It will look something like this: 

1. Earn a Degree

Initially, you must earn your bachelor’s degree. This involves a four-year commitment to the college or university of your choice. As you work toward your degree, you'll take coursework that's designed to help you master the financial topics that planners need. You may also take board-approved coursework if you plan to pursue certification after graduating. Depending upon your financial specialty, you may also need to obtain a license to work in your state.

2. Obtain Licenses and Certifications

Who needs a license to become a financial planner? Anyone who wants to sell products such as mutual funds, insurance premiums or variable annuities. To do this, you must take and pass the Series 6 exam (Investment Company and Variable Contracts Products Representative exam, or IR) that's offered by the Financial Industry Regulatory Authority (FINRA). If you plan to sell stocks and bonds, you must pass the Series 7 (General Securities Representative or GS) exam. 

Other licensing exams have been developed by the North American Securities Administration Association (NASAA). They include exams for Series 65 and Series 66 licenses. You may need these if you plan to advise clients on specific investments or if you plan to work for a firm that specializes in investment advice.

3. Find a Job

Once you've earned your degree, it will be time to begin searching for that ideal job. Though you can begin preparing long before graduation. Seeking an internship during your junior or senior year of college is a great way to learn the ins and outs of financial planning. It may give you an idea of where you'd like to specialize and may even lead to employment, though there's no guarantee. 

Networking is another ideal method for finding work as a financial planner. Get to know your classmates and school alumni. Talk with your instructors to get tips on where to search for work and harvest information from family and friends. Whom do they see for financial planning? Do they know anyone who could use a financial planner? 

Lastly, polish up your resume and decide where you want to work. Even if your ultimate goal is to work for yourself in your own consulting firm, getting a few years of experience in an established financial institution or insurance agency can't hurt.

4. Pursue Graduate School

Possibly, you may decide to continue your education and earn your master's degree in financial planning. A master's degree may make you a more marketable candidate for a large corporation or may help you land more high-profile private clients. Many graduates who hold master's degrees make more money over the course of a lifetime than those with bachelor's degrees, which is an important consideration for someone interested in wealth management.

Is Financial Planning a Good Career for You?

Is a career as a financial planner right for you? Only you can answer this question. However, if you've always been good with numbers, enjoy giving people advice and have always been a whiz with money, it could be a great choice. You'll need an education, sound ethics and a positive outlook to do well in this industry. You'll constantly be in touch with clients, usually more than several in a day, so communication skills are a must, too. Sales ability will help, and so will keeping current on changing financial trends.

Earn Your Bachelor's Degree at Husson University

Husson University's College of Business is a top-rated school in New England and is accredited by the New England Commission of Higher Education. Apply for admission or request more information today.

Sources

https://www.cfp.net/about-cfp-board

https://www.investopedia.com/articles/financialcareers/06/financialplanningquiz.asp

https://www.finra.org/registration-exams-ce/qualification-exams/series6

https://www.thestreet.com/how-to/how-to-become-a-financial-advisor-14650926

https://admissions.husson.edu/apply/