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How to Become a Personal Financial Advisor
As a personal financial advisor, you can earn a median annual salary of $89,330. To get started, earn your bachelor’s degree and pass the necessary licensing exams. Then, you can start working for a small or midsize financial firm. You can also pursue a master’s degree in finance or business administration for further training.
Earn a Median Annual Salary of $89,330 as a Personal Financial Advisor
A career as a personal financial advisor can be gratifying. This career can offer a flexible schedule and high earnings.
As of the United States Bureau of Labor Statistics (BLS), the median annual salary for a personal financial advisor was $89,330 in 2020. However, wages can be higher if you specialize in specific sectors, such as commodities or securities.
The median annual salary for a personal financial advisor was $89,330 in 2010, and the occupation will grow faster than the overall economy through 2020. According to the Bureau of Labor Statistics, the job outlook for this career is remarkably favorable.
According to the BLS, there will be a 4 percent job growth from 2010 to 2020, considered a fast rate. Additionally, as the population continues to grow older, the demand for personal financial advisors is expected to grow.
As a personal financial advisor, you will help people manage their money and prepare for their future.
This career typically works in the insurance and finance industries. The BLS estimates that the demand for this career will grow by 5% from 2020 to 2030. As a personal financial advisor, you’ll need a high degree of math and critical thinking skills.
While salaries for personal financial advisors vary, the average salary will be significantly higher if you have experience or an advanced degree in the field. The average salary for a financial planner varies according to the level of expertise and location.
Those who are more experienced and tenured will earn more than those who are just starting. In addition, you can earn more if you go to business school and obtain a business administration degree.
Personal financial advisors can specialize in retirement planning, risk financial management, or risk financial management. Their specialized knowledge helps clients with their specific needs and sets them apart from their competitors. As the population ages, there is a greater need for personal financial planners.
As baby boomers retire, they move from traditional pension plans to individual ones. This means that companies will no longer provide defined pension payments throughout retirement. This means that people will need personal financial advisors to assist them in saving for retirement.
Get a Bachelor’s Degree
As a financial advisor, you’ll advise clients and help them manage their finances. In addition to general financial advice, you can specialize in a specific field, such as retirement planning or risk financial management.
Specialization will help you meet specific client needs and set you apart from the competition. According to the Bureau of Labor Statistics, jobs in financial planning are expected to grow by 5% through 2030. While this growth rate is slower than the average for all occupations, it should be stable and steady.
Regardless of the type of advisor you want to become, you will need a bachelor’s degree in a relevant field. For example, you may want to consider a degree in accounting, business, or finance. In addition, a financial advisor must possess solid analytical and critical thinking skills.
Personal financial advisors need analytical skills and a passion for managing people’s money. They also need to be trustworthy and have good communication skills. These skills can be developed in a finance degree program. Personal financial advisors must build rapport with their clients and be confident in making risky decisions.
Financial advisors can specialize in different fields, including estate planning, investments, or tax planning. If you’re looking to work as a financial advisor, you’ll need a bachelor’s degree and some industry certifications.
Typically, you’ll need a bachelor’s degree to become a personal financial advisor, but if you’d like to be even more successful, you’ll need a master’s degree or higher.
You can also pursue a degree in finance online. This degree will help you complete your studies quickly and affordably. It can take as little as 18 months to complete. The program also includes an Accelerated Master’s Pathway, which can save you time and money.
A bachelor’s degree in finance or economics can give you a solid foundation for becoming a financial advisor. It will give you a solid understanding of macroeconomic and critical microeconomic topics. With this knowledge, you’ll be able to help your clients navigate the market cycles more effectively.
Pass Required Licensing Exams
If you’re interested in working as a personal financial advisor, there are a few steps that you must take to get started. First, you’ll need to pass the required licensing exams.
Depending on which types of financial products and services you plan to sell, you’ll likely have to pass the FINRA Series 7 exam.
Alternatively, you can take the Certified Financial Planner (CFP) exam. A CFP credential shows that you’ve had extensive training and experience in the financial industry.
In addition to the Series 7 exam, you’ll need to pass the General Securities License exam. This exam will test your knowledge of the securities industry and allow you to sell stocks, bonds, options, futures, and other products.
Typically, it takes about three hours to complete the exam. To qualify, you’ll also need to complete continuing education courses every three years.
If you’d like to become a personal financial advisor, you should have a bachelor’s degree and the necessary industry licenses and certifications. It may also help to complete an internship. This will give you experience working as an advisor. Internships at broker-dealers, banks with financial advisor arms, and smaller independent firms can be helpful.
You may need a different license depending on which financial products you want to sell. Those who wish to sell commodities or real estate will need a Series 3 license.
You can learn more about each of these licenses on the FINRA website. You’ll also need to pass a series 63 exam if you wish to sell insurance. The exam is composed of sixty multiple-choice questions.
The Series 66 exam is a requirement for investment advisers in all but Wyoming. To become a financial advisor, you’ll need to pass this exam, also called the Uniform Investment Adviser Law Examination (UNISAP).
Passing this exam requires a specific score of up to 73 percent. It costs around $165 and takes about two hours. Afterward, you can retake the exam up to three times. If you fail the third time, you’ll need to wait 180 days to retake it.
Before becoming a financial advisor, you’ll need to learn about the industry and pass the required licensing exams. This license is essential because it allows you to sell products, so you must understand the laws surrounding selling them. Unlike hairdressers, financial advisors are required to follow specific laws that govern the sale of financial products.
Work for a Small or Midsize Firm
To become a personal financial advisor, you must master the art of networking while integrating strategic follow-up. Schedule open blocks of time for meetings and phone calls.
Every hour you spend without a prospect is an hour without income. You should also devote time to client education. This may include writing email newsletters and seminars.
Many colleges offer relevant majors and CFP-approved programs. But as with any career, finding a job is not easy without experience. To become a personal financial advisor, you will need to get some experience working for a financial firm. You can do this by taking advantage of your previous work experience.
According to the Bureau of Labor Statistics, personal financial advisors’ job outlook is good. The profession is expected to grow 15 percent over the next decade.
This is mainly due to an aging population needing more financial advice. In addition, fewer employers are providing traditional retirement benefits, making more people in need of advice than ever.
When starting, it is best to start working for a small or midsize financial firm. This allows you to build a client base and develop relationships.
This allows you to be more creative and to focus on client needs. Often, top advisors share the costs of hiring a sales assistant with other advisors.
This allows them to maintain the same schedule for client appointments. Developing a specialty is a great way to access clients you enjoy working with.
A bachelor’s degree is the minimum educational requirement to become a personal financial advisor. A bachelor’s degree in finance or economics will provide you with the practical knowledge you need in this role. A degree in business or law is also helpful.
Personal financial advisors guide clients on long-term financial goals. They can help families plan for retirement or afford college expenses.
The field is expanding and is not limited to one location. You can also work independently and gain clients as a sole proprietor. However, it would be best to have appropriate certifications to build credibility.