FINANCIAL PLANNER ASPIRANTS, TAKE NOTE OF THE BASICS

Just like all jobs, if you want a career in financial planning, you need to have a background of what it entails first. This profession will basically require you to coordinate directly with clients or entities to guide them in as they manage their funds. You are to give the best recommendation and at times, comprehensive strategies based on what you client needs. These individuals can either work independently or in large companies. Regardless of their preferred structure, all of them have similar job descriptions.

Task coverage

Consultants work with businesses, individuals, and families to help them understand the present state of their finances and assist them in meeting their objectives. Initially, the clients must provide the relevant financial information need, which may include annual income, debt, and savings. In return, these data are analyzed by the planner before giving his suggested resolutions.

The scope of this work is vast, as they can venture into personal finance or provide tax efficiency information as well. For those employed in businesses, they usually work on topics such as cash flow, revenue, and employee benefits. Since they will be dealing with a lot of factors that affect a certain entity, their role has a huge impact on how it will fare in the future.

There is also a so-called prospecting terminology in this field. It implies building relationships with other professionals, and developing your network in the process. You may work on this during social events to ensure healthy ties with your customers and maintain your retention rates.

Educational background

Although it does not require any formal higher education, a bachelor's degree is highly suggested. Those with further studies such as an MBA also have an edge.

Aside from this, the career also stipulates having licenses before being able to implement transactions related to insurance or securities. Some of these licenses include the Financial Industry Regulatory Authority (FINRA) Series 7 which comes along with continuing educational requirements and a good record from the regulatory body.

Certifications are also of big help in entering the industry such as the Certified Financial Planner designation. This title is highly regarded in the field, and also covers a two-day examination, a degree, and further studies.

Skills

Since connections are crucial in this job, the ability to build relationships is important as these will be your foundation in winning your client's confidence for a smooth flow of negotiations. Moreover, being well-versed in all aspects of finance is also a must, plus stong analyzation and retention capabilities.

Income

In the US, consultants earn an average of $71,000 annually, as stated in a 2014 study. Usually, their salary is based on a combined commissions and fee-based services. Those who are working for big companies typically have lesser compensation compared to manages his own firm.