How to Become a Personal Finance Adviser

Personal finance advisers help protect financial futures.

Personal finance advisers help clients meet financial goals by offering advice about savings money, portfolio management and investment selections. They may manage the financial resources of their clients, provide financial guidance, conduct investment analyses and perform research on a company's financial condition in order to help clients grow their funds. According to the U.S. Bureau of Labor Statistics, in 2009 approximately 29 of personal finance advisers worked for themselves. The personal finance advising industry is competitive because of the potential to earn high wages.

Instructions

1. Go to college. To become a personal finance adviser, you at least need a bachelor's degree. It is important to take classes that assist with the fine-tuning of your interpersonal, math and analytical skills. The Certified Financial Planner (CFP) Board of Standards states that your bachelor's degree may be in any major, but it must be from a university or college accredited by the U.S. Department of Education. Some good degrees for a personal finance adviser include accounting, law, financial analysis and financial consulting.

2. Complete the CFP Board-Registered Education Program. There are about 100 financial topics you must learn about and master in order to become a personal finance adviser. Topics include retirement planning, estate planning, risk management, insurance and investment planning.

3. Gain professional experience. Work experience must be in the financial planning process, such as preparing financial plans for a client, supporting individuals who are personal finance advisers or teaching about the personal finance planning.

4. Pass the CFP certification exam. Divided into three sections, the CFP exam takes 10 hours to complete. The questions are all multiple-choice and test your ability to apply the financial planning knowledge you learned to realistic situations. The CFP administers tests three times a year throughout the U.S.---in March, July and November.

5. Pass a background check and meet the fitness standards for candidates and registrants. Fitness standards include not having any bankruptcies in the previous five years. You will receive a license to work as a personal finance adviser after agreeing to the CFP code of ethics, rules of conduct and practice standards.

Tips & Warnings

• You do not need a bachelor's degree to sit for the CFP Certification Examination. However, you must earn a bachelor's degree within five years of passing the exam in order to meet your educational requirements to receive a license to work as a personal finance adviser.

• If you have certain degrees or credentials, you do not need to complete a CFP Board-Registered Education Program. Instead, you can request a "challenge status." Such credentials and degrees include the following: chartered financial analyst, Doctorate of Business Administration, Ph.D. in business or economics, chartered life underwriter, chartered financial consultant, licensed attorney and Certified Public Accountant.

• Starting in 2012, aspiring personal finance advisers must complete a "capstone course" even if they have a challenge status.

References

• U.S. Bureau of Labor Statistics; Personal Financial Advisors; December 2009
• Certified Financial Planner Board of Standards; Steps to Initial CFP Certification; 2011
• Certified Financial Planner Board of Standards; The Education Requirement; 2011