Are you looking to start your career as a financial advisor? It can be a good move as, according to US News career rankings, financial advisors get the highest paying jobs, and it is ranked as the 4th best business job for 2021. Most financial advisors have a knack for handling their finances on their own, and if you are the one who has always managed investments and savings yourself, this career path is perfect for you.
Whether you’re from a finance background or are just interested in helping people manage their budgets, you can choose this path. However, if you want to become a financial advisor, walk with us till the end to know more about financial advisor career path!
Financial Advisor – An Overview
A financial advisor is an expert who give advice to the clients about their financial goals and recommends investment strategies to reach these goals. These professionals develop plans to minimize any possible future financial crises and help you save wealth in the long term.
Simply, financial advisors let you understand technical terms, assist you with financial budgeting, and help you pick mutual funds that are best for you.
Some of the different types of financial advisors include:
• Financial Managers
• Budget Analyst
• Investment Professionals
• Wealth Manager
• Tax Professionals
Duties Of A Financial Advisor
Financial advisors are skilled to help you achieve all your financial goals, but some of the common duties of financial advisors include:
A financial advisor helps you invest your money and grow wealth while protecting you from any type of risk in the future. They advise each client on the basis of their financial adaptability, helping to achieve their financial goals. Also, they have fantastic negotiation skills that help secure the best deals for clients.
An experienced professional has a thick lens to determine which mutual funds are right for you and let you manage and make the most from your investments.
Not only do financial advisors manage your finances, but they also help you secure your future. Whether you are planning to go on vacations after retirement, build a business model or have a world tour, an expert financial advisor can help you achieve your desired retirement plan.
Fortunately, you can upsurge your retirement savings while fulfilling your financial needs with the help of retirement planners.
With increasing wealth, tax planning and preparation become an important task to do. Here comes the need for a qualified financial advisor.
The financial advisor is familiar with the clients’ financial goals and unique circumstances; thus, they help maximize tax returns and cash flow.
Having a good health care plan is essential for the future; however, it should be affordable now and in the long term when you will need it the most. The financial advisor helps you get a budget-friendly health care plan from a trusted XYZ company.
How To Become A Financial Advisor?
You must consider the following points if you are starting your journey to becoming a financial advisor.
To start a career as a financial advisor, most companies prefer at least a bachelor’s degree in finance, accounting, marketing, or business management. Some XYZ companies even require a master’s in business administration.
Moreover, financial advisors are required to have a level 4 qualification in financial advice, General Securities Representative License (Series 7 license), Uniform Securities Agent State License (Series 63 license), and Uniform Investment Advisor Law Exam (Series 65 exam).
Although getting an education is an important step to becoming a financial advisor, skills and experience make you an expert professional, leading to high-paying jobs. According to the Bureau of Labor Statistics, financial advisors get an average salary of $90,000 per year; however, this does not mean that a new graduate candidate will directly get this salary in his first job as a financial advisor. Likewise, other professions, a financial advisor also need to spend years in hard work to add weight to their resume.
Financial And Interpersonal Skills
Some of the main skills that a financial advisor require include:
• Professionalism and positive attitude to attract new clients.
• Ability to communicate clearly with clients and convey technical information in simple words.
• The ability to relate with clients and understand their financial matters and goals.
• Negotiation and influencing skills to secure the best deal for clients.
• Business development and research skills.
• Ability to work with a team.
• Active listening and time management skills.
• Decision-making skill.
Advantages Of Pursuing Career As A Financial Advisor
Some of the benefits of pursuing this field include:
High Income Potential
Most financial advisors earn a handsome amount of salary. This income is either fee-based, commission-based, or a combination of both, depending on the amount of revenue created each year. With experience and skills, an average financial advisor can make over $ 90,000 each year.
It isn’t easy to balance work and personal life at the start of a career. However, with an established client base, a financial advisor can choose to work at flexible hours. You get the advantage of scheduling your meetings with clients around your working hours and stop hunting new clients when your financial goals are met.
The Bureau of Labor Statistics suggests that the financial advisor career has a projected growth rate of 15% from 2016 to 2024, which is significantly greater than the average job (7%).
Financial advisors have an opportunity to build their client base. Some advisors pitch the Baby Boomer generation, while others serve Millennials. Most advisors select specific niches such as lawyers, entrepreneurs, and doctors based on their education specialty, and experience.
If you are good at managing finances and want to help people who struggle to fulfill their financial goals, starting a career as a financial advisor is a good choice for you. Financial advisors have good growth potential, earn a handsome amount of salary, and can choose to work at flexible hours; however, all these perks can be achieved with higher qualifications and experience.