How to Start a Small Business As a Financial Adviser
Financial advisers help individuals and households make personal finance decisions, including what amount of earnings to divert to investing, what investments to choose (stocks, bonds, bank term deposits), and how to save money for retirement. Starting a small business as a financial adviser primarily requires extensive knowledge of financial and investment products and some formal education, including certification.
- Difficulty:
- Moderately Challenging
Instructions
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Earn a bachelor's or more advanced degree from a well-respected university. Choose a major in Finance or Economics. While studying, keep abreast of what's going on in the real-life financial world by regularly reading publications such as The Wall Street Journal or The Financial Times. Also follow the stock market, bond market and the real estate market. Access business news agencies such as Reuters or Bloomberg to help in this regard.
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Become certified. You can acquire a financial planner's certificate from the Certified Financial Planner Board of Standards, Inc. To qualify, you must have a bachelor's degree and pass a 10-hour examination on approximately 100 different finance-related topics.
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Decide on the type of financial advisory firm you want to establish and become registered. If you will provide only advice--without selling any particular investment products, then a state registration of a proprietorship or a small company will do. If, however, you want to sell securities directly to the client, you will need to register as a broker-dealer at the Securities and Exchange Commission.
Another option for you is to join an existing financial advisory firm and build your customer base. Whatever option you choose, always remember that the most important thing for a financial adviser is his reputation.
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References
- Photo Credit financial section image by Chad McDermott from Fotolia.com
