What It Takes to Be a Financial Planner
Financial planning is necessary for most families, but many don't know where to begin. This is where financial planners come in. They help people deal with making and implementing decisions for their financial futures, including things like managing cash flow, educational and retirement savings, investment planning and more. So what does it take to become a financial planner?
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Function
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While there is technically no specific degree required for financial planners, it's essentially necessary to have at least a bachelor's degree to break into the field. Although there's no preferred major, certain degrees can ease your way into the field. If you want to be a financial planner, consider majoring in something like economics or business--or at the very least, something logic- or math-based.
Types
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Financial planners can be self-employed or may work for a firm. They may work directly with individual clients or families, or they may work on behalf of a company. Other financial planners may also serve as trust administrators, which means they help to handle the estate of a client in the event that they become incapacitated or die. Financial planners can also serve as security or stock brokers for their clients. Some banks and credit unions also keep financial planners on staff to help their customers make decisions about their assets.
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Considerations
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There is technically no federally mandated professional certification required to become a financial planner, but some states do have regulations in place. Check your state's laws to be safe. However, most large firms won't hire a financial planner who has not received the Certified Financial Planner (CFP) certification. Even if you plan to start your own business, the CFP certification is a good idea, as clients are likely to ask for credentials. Obtaining your CFP will allow you to fully comprehend the scope of your profession and can put potential clients at ease. The CFP exam assesses a financial planner's ability to practically apply his knowledge to real-life situations. Plus, there's a strict code of ethics that must be adhered to by Certified Financial Planners.
Features
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Financial planners must be more than just good at math. In fact, a financial planner must have several qualities in order to be successful. First, she must be able to attract new clients, especially when starting out. This means she must have sharp sales skills. Plus, she must have the ability to listen effectively and make sensible financial suggestions based on her client's individual financial needs. She must also understand investment products and the market thoroughly in order to give her clients the best possible chance to secure their financial future.
Potential
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There is a lot of potential for growth in the financial planning field because Americans are becoming increasingly concerned with managing their money and securing their futures. This is especially important as people move toward retirement.
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Resources
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