If you’ve ever considered becoming a financial advisor, you’ve come to the right place. Whether you’ve always dreamed of a career in finance or you’re the one who asks your friends about your budget, you’re probably wondering if this might be the right career path for you. To help you better understand what a financial advisor does and what it’s worth, we’ve compiled a handy guide to answer some of the most common questions people have about the field.
What are the educational requirements to become a financial advisor?
As with any potential career, it’s good to know what employers expect from candidates. We used real-time job analysis software to examine over 42,000 personal financial advisor job postings. 1 According to the data, 82% of respondents said they want job candidates to have a bachelor’s degree or higher. Candidates in business, accounting, or finance are preferred.
Do financial advisors need to be certified outside of college?
Another important factor to consider is whether you need or wish to earn additional professional certifications to enhance your financial advisor recovery. Here are the top certifications employers are seeking, according to our analysis of financial advisor job postings:
These certifications may require additional work experience before you can qualify for them, so be sure to do your research ahead of time so you know exactly what you need.
What is the income potential of a financial advisor?
According to the Bureau of Labor and Statistics (BLS), the annual salary for personal financial advisors in 2016 was $90,530. 2 Higher than the 2016 period wage for all workers, which was $37,040. That doesn’t mean you’ll be walking into a new job every year, but it does show the potential for massive payoffs down the road.
What is the job outlook for a financial advisor?
Of course, if you’re going to put your time and energy into earning a finance degree and certification, you’ll want to make sure the job market for financial advisors is strong. The good news is that the BLS program will increase the employment of personal financial advisors by 14% from 2016 to 2026. This is the double average projected increase in employment across all occupations. While nothing is guaranteed, there are many reasons why financial advisors can have an optimistic job outlook.
What does a financial advisor do?
Financial advisors make prudent decisions by presenting financial goals through prudent decisions. Financial advisors regularly meet with clients to understand what their financial goals are and what investment strategies they may need to pursue. This includes assessing the client’s current financial situation and advising them on how to achieve their goals.
Financial advisors rely on their focus area with the clients they occupy — some have a strong focus on retirement planning, while others are well known in areas like tax law. With this area of focus, various client types – financial advisors work with individuals and organizations.
In addition to retirement and tax law, financial advisors may specialize in areas such as insurance, mortgages, investments, and more. Certified Financial Planners are generalists and work with all of the above to address many of the individual needs.
The day-to-day work of a financial advisor US Department of Labor includes:
- Interview clients to determine their current income, expenses, insurance coverage, tax status, financial goals, risk tolerance, or other information needed to develop a financial plan
- Answer client questions about investment strategy details
- Review client accounts during major life changes such as marriage, child, or employment transfer
- Recruit and maintain client base
- Monitor financial market trends
- Research investment opportunities on behalf of clients
Where and when do financial advisors work?
Financial advisors have a variety of options for their work settings. Many are employed by large organizations, while others can choose to work in small companies or independently as their bosses. Financial advisors to small or independent firms may spend more time as salespeople as they need to recruit clients and markets to stay afloat. This push to build a client base often results in financial advisors spending a lot of time attending networking events and giving presentations to potential clients – which can mean working nights and weekends.
What are the characteristics of the best financial advisors?
Temperament, attitude, and abilities all play a big role in how well you do your job. People with the following characteristics and characteristics may be a good fit as a financial advisors:
Teaching ability
Financial management and retirement planning are beautifully complex topics for most people. Add that clients are making potentially stressful decisions that affect their livelihoods, and you’ll start to see exactly why teaching abilities come easy. People need reassurance that they’re making the right choice. Financial advisors need to possess strong communication skills and the ability to explain the services and strategies they provide. Advisors do well if they can understand and affirm clients and communicate details of how and why they can help clients.
Morality
Having your client’s needs front and center are critical to success as a financial advisor. You’ll do well if you can gain and maintain your customers’ trust while using something personal and valuable as their finances. Putting their needs above your own and being transparent is the ethical core of this industry. Put yourself in your customer’s shoes – would you rather hear an honest assessment of your financial planning or thin sales promotion efforts? Trust provides for loyal customers.
Organization
It’s important to stay organized between researching investments and accounts and meeting with clients. Not only time management but orderly and clear paperwork saves time and hassle and provides a better experience for you and your clients
Delve into Finance
Now, you have a wealth of valuable information on how to become a financial advisor. But that’s just the fur. If you want insider tips from industry insiders, you’ll want to check out our article. ” What I wish I knew before working in finance .”
