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.
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Steps to a Financial Planner Career
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1
Earn a Bachelor's Degree
A financial planner typically must earn a bachelor's degree or higher in any subject. Enrollees can gain applicable knowledge by completing relevant coursework in finance, business administration, and/or accounting. -
2
[Optional] Gain Experience Through an Internship
Internships allow prospective financial planners to better understand the field and determine the suitability of this career path. Interns may assist with data entry, client meetings, and basic financial planning ideas. -
3
[Optional] Earn a Certification
Financial roles may not require a certification, but certified candidates may have additional job and advancement opportunities. Financial planners often pursue the certified financial planner (CFP) credential. This certification requires specific education, exam, experience, and ethics requirements. -
4
Obtain Licensure
A financial planner's services determine whether they require licensure. Full-service professionals who assist with insurance, mutual funds, or options may require specific licenses. -
5
Continue Education
CFP holders must complete continuing professional education (CPE) courses. Licensees may require CPE courses depending upon their license and state requirements. -
6
Find a Job
You can pursue financial planner roles by applying online and networking. Positions with top financial institutions can be competitive, and networking can demonstrate your perseverance and strength. -
7
Gain Clients
Companies may require financial planners to find clients and meet assets under management thresholds. An individual's compensation may rely on the amount of funds being managed.
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.
Read More About Degree Programs
Bachelor's degrees in finance
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Master's degrees in finance
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:
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Education
- Bachelor's degree in any subject
- 12-18 months of CFP Board-approved coursework
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Exam
- 170 multiple-choice questions across two three-hour sections
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Experience
- Experience may occur before or after the exam
- 6,000 hours of experience related to financial planning or 4,000 hours of apprenticeship experience
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Ethics
- Background check
- Ethics declaration
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.
Learn how to earn a CFP certification
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.
- Create a positive impact on people's lives
- High compensation for successful planners
- Flexibility after establishing a client base
- Creativity in investment advice and networking opportunities
- Helping with retirement planning, taxes, and investment advice
- Transferable skills can apply to other financial careers
- Career can be stressful
- Finding clients can be time-consuming
- Weathering economic downturns
- Discovering which licenses are necessary to deal with certain investments
- CFP credentials require further experience and education
- Completing CPE courses as needed
- Renewing licenses and certifications on time
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.
Get Tips on Job Searching
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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
How do I start being a financial planner?
Prospective financial planners can start their career journey by studying financial topics, networking, and setting personal goals. Although corporations may hire financial planners without relevant educational or work experience, candidates can use past work experience and education to stand out among their peers.
Is it hard to be a financial planner?
These financial professionals require a deep understanding of accounting, investments, and budgeting. Though their high-stakes work can be stressful, many financial planners find the profession fulfilling.
Can you get a CFP without a degree?
A CFP candidate must have a degree. The CFP Board of Standards requires at least a bachelor's degree in any subject. Additionally, the CFP requires each applicant to complete a set of courses, which may take 12-18 months.
Which is better: CFP or CFA?
The CFP and CFA can teach essential financial skills, but neither certification offers inherent advantages. CFPs focus on the skills necessary to help individuals and small businesses manage and grow funds. CFAs may learn broad financial skills that can apply to large firms and banks.
