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A financial planner (also called a personal financial planner) is a professional who prepares financial plans for clients and covers many important aspects of personal finance. Some of these may include how to manage cash flow, planning for retirement, investment planning, risk management, tax planning, estate planning, education planning and insurance planning. Simply stated, financial planners financial planner are in the business of figuring out how to manage others people’s money by meeting with clients to get them on track to meet their financial goals.
Your Career as a Financial Planner
Financial Planning is expected to be one of the faster-growing occupations over the next decade, with a projected growth rate of 27 percent between 2012 and 2022, according to the Labor Department. That is an additional 60,300 new positions being added to the 175,470 jobs financial advisors held in 2012. Demand for advisory services is continue to rise partly because of the overwhelming numbers of retiring Baby Boomers. While many advisors start out working for larger financial services firms, about 20 percent work for themselves, often building up expertise in areas such as retirement planning or financial planning for small business owners.
Salaries for Financial Planners
According to the Department of Labor and Statistics, the median annual salary for financial advisors was $67,520 in 2012. With the lowest-paid planners earning less than $32,280 and the highest-paid earning upwards of $187,199, there is clearly room for career progression. Additionally, many personal financial planners earn substantial bonuses.
Education Needed to Become a FINANCIAL PLANNER
Earning the trust of clients begins by building and maintaining an in-depth level of financial expertise. Earning a Bachelor’s Degree is necessary, and getting a Master’s in Business Administration is a wise move as well. Earning and maintaining the Certified Financial Planner (CFP) designation is recommended along with obtaining membership in the Financial Planning Association or other industry groups. Many successful advisors earn securities licenses and earn substantial portions of income through investment fees. Many advisors also sell insurance products, but this requires state licensure and professional certification.
As it is a more recent profession, financial planning has spent much of the last four decades developing its own system of education and professional certification. There are two major accrediting agencies–the Association to Advance Collegiate Schools of Business (AACSB) and the Association of Collegiate Business Schools and Programs (ACBSP)–that accredit the best business school programs in the United States.
Although you can be a financial advisor without CFP certification, it helps to have it. To earn the certification you need to pass an examination. There are over 285 colleges and universities that can help you prepare for this exam. You also need to have three years’ of full-time work experience.
Taking the proper steps to have the best skill set to be a successful as a financial planner will open the door to a rewarding, fast-paced and financially secure future.
