How to Become a Financial Planner

A financial planner is a person who educates people about the necessity and advantages of investing money, and also guides them in making lucrative financial decisions. Financial planners analyze an individual's current salary, lifestyle, priorities in life and also his/her financial goals, and make out a financial plan that would help in reaching the set goal. Financial planners, also known as financial advisors, helps people in insuring their money for emergency purposes. Some people take up the responsibility of financial management themselves, however there are chances that they may make mistakes due to inadequate knowledge and inexperience in the financial sector, causing them to lose their hard earned money. Taking the help of a financial planner has become quite common in recent years, either because people are too busy, or because they do not want to take a risk of wrongly investing their money.



The job of a financial planner is very hectic and involves huge responsibilities. In this age, when people are very busy, they rely on financial experts to make important decisions regarding their money. For this reason, the popularity of financial planners have increased. Here are certain important things you have to know about how to become a financial planner.

Becoming a Financial Planner

It is said that to become a financial expert, one need not have a bachelor's degree. However, it would add to your work profile and earning potential, if you secure one. If you are thinking of becoming a financial planner, it would also be beneficial to complete your graduation in the field of finance, economics, mathematics, statistics, business or law. You can also enroll into financial planner courses that impart knowledge about estate planning, investments, risk management and taxes. Graduating as as a Chartered Financial Analyst or a Chartered Financial Consultant would also greatly help one in becoming a financial planner. One can also take up these financial planning courses online, if one does not have the financial resources or time to physically attend classes. Studying these subjects would help in understanding issues and intricacies of financial management.

To practice as a professional financial advisor, one needs to become a certified financial planner, for which one has to obtain the Certified Financial Planner certificate. People who want to achieve this certificate should have a graduate degree, and most importantly, at least three years of experience in a related field. The three years of experience is where you would receive the actual training for your career as a financial planner. You would be dealing with the practical aspects of what you have studied in your courses. During this time you would learn how to make customers, how to deal with them. Your main job would be to guide them in planning their finances according to individual needs. This would also help you in building up business relationships and clients.

Once you complete the experience requirement, you would have to give a financial planner exam that tests your skills as a financial advisor. Passing this would make you certified financial planner. You would also have to undergo an ethical practice and background check. After you become a certified financial planner, you can either work at an investment or financial management company, or else can set up your own business as a financial advisor.

The salary system for financial planners are very different. Initially, when you start your career, you would enjoy a fixed salary, though it would not be a very huge amount. However, once you become a certified financial planner, your income would depend on commissions and sometimes direct payment for the service you have provided to the client.

Financial planner careers have become one of the most sought after careers in recent years. Along with educational qualifications and experience, one very important thing that you would need is excellent communication skills. While how to become a financial planner can be best answered by a financial expert, this article has dealt with some important aspects that will help you in your quest to become one.