Financial Planner as a Career

Description of the Job

Financial planners work with individuals, families, and businesses to help their clients understand their financial circumstances and how to reach their short-term and long-term financial objectives. Financial planners present realistic, meaningful recommendations based on their clients' financial situations and goals. Financial planners discuss many personal finance topics with their clients, including debt management, savings objectives and strategies, and personal and family budgeting. Prospecting, which is the process of finding new clients, is also a substantial part of a financial planner's job. 

 

Other terms may include Financial Advisor, Wealth Manager, Wealth Advisor, and Financial Consultant.

Fast Facts

  • Number of hours per weekVaries. More busy when building client base
  • Average starting pay$55k nationally, $62k for Bay Area
  • Amount of travel requiredLittle to none, depends on where your clients are
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Roles & Responsibilities

  • Providing financial planning, retirement planning, insurance solutions and investment management to clients.
  • Helping clients gather, organize and consolidate investment accounts and financial information. 
  • Cultivating and maintaining client relationships through review meetings, and providing news / information about tax, economic and lifestyle changes that may affect them.
  • Acting as a liaison between clients and other professionals and providing referral resources to needed expertise such as attorneys, CPAs (Certified Public Accountants), mortgage lenders, realtors, bankers.
  • Assisting clients with estate planning, tax issues, budgeting, retirement plans, tax advantaged solutions.

Skills Needed

  • Analytical and problem-solving skills: Ability to listen to client concerns and be able to provide solutions that are in the clients’ best interest, as well as understanding economic and market conditions.
  • Strong understanding of Financial Markets: Clients trust Financial Planners with their money and financial matters, so Planners must stay on top of current financial conditions, strategies and planning concepts.
  • Communication and interpersonal skills: Ability to solicit new business, network with associates, and manage relationships with clients.
  • Organized and detail-oriented: Properly allocate the time necessary to manage each client's finances and risks, and check details to ensure accuracy.
  • Empathy: Ability to empathize with clients and listen.  Clients can become worried about finances when their investments lose value or when there are economic downturns.  Part of a Financial Planner’s job is to reassure clients and help them think long-term with money management.
  • Presentation skills: Financial Planners often present to current or prospective clients about solutions, strategies, and what value the advisor can add for the client.

Steps to Enter The Field

  • Bachelor's degree is generally required, ideally in finance, accounting, or a related field.
  • There are multiple designations you can receive that will help you become a Financial Planner. Some of them include: 
  • CFP (Certified Financial Planner): This is probably the best one to have as a Financial Planner and covers a wide range of topics important for advising clients. 
  • CLU (Chartered Life Underwriter): Courses cover everything from the fundamentals of life insurance certification to highly specialized knowledge.
  • (ChFC) Chartered Financial Consultant: covers a must-have list of requirements for financial advisors, from knowledge on tax and retirement planning to special needs advising, wealth management, insurance, and more.
  • (CFS) Certified Fund Specialist: Focused on mutual funds; it can help you allocate your portfolio to minimize risk.
  • Certain licenses may be required to provide advice and implement specific securities or insurance-related transactions. Some of them include FINRA Series 7 and state insurance licenses.

Landscape of the Field & Companies in the Field

  • There are 5 main types of financial planning firms: 
  • Brokerage houses: licensed to buy and sell stocks or securities. Examples include Merrill Lynch and Edward Jones.
  • Insurance companies: provides a range of insurance policies to protect individuals and businesses against the risk of financial losses in return for regular payments of premiums. Examples include Northwestern Mutual and Metlife. 
  • Money Management firms: Provide a plethora of financial services, including investment banking, asset management, financial planning, and much more. Examples include Goldman Sachs and JPMorgan.
  • Banks: accepts deposits from the public and creates a demand deposit while simultaneously making loans. Examples include Wells Fargo and Citi.
  • Independent firms: Smaller firms that either work on their own as RIAs (Registered Investment Advisors – governed by the SEC) or are aligned with a broker dealer such as LPL and Independent Financial Group (governed by FINRA).

External Resources to Learn More & Develop Skills

Related Careers

Informational Interviews

Mark Ealy

Company Name: Wealth Management Group

Title: Professional Wealth Advisor

Years of Experience: 30

Biography

Mark Ealy is a Certified Financial Planner (CFP), Certified Public Accountant (CPA), and Pension Plan Consultant (PPC). He started his career as a CPA at BDO, then switched careers to become a CFP. He founded his own company, Wealth Management Group, in 2003, where he provides wealth management and investment consulting services to business owners, retirement plans, retirees and families.

Overview
Steps took to enter field
Challenges & Favorite Parts
Advice

Raymond Regala

Company Name: Comerica Securities

Title: Financial Consultant

Years of Experience: ~ 25

Biography

Raymond Regala has been a Financial Consultant at Comerica Securities for 23 years. He graduated from San Jose State University in 1994 with a degree in Business Administration - Finance.

Overview
Steps to Enter Field
Challenges & Favorite Parts
Advice