What does a financial advisor do?
Financial advisors evaluate the financial needs of businesses and individuals by using their expertise in investments, insurance, and tax laws. They research financial options and present their recommendations to their clients. They help their clients identify and achieve their short-term and long-term goals. They then help clients create a comprehensive financial plan that recognizes problem areas, makes improvement recommendations, and chooses the suitable investments that will meet the client’s goals.
Financial advisors work with a variety of clients and are often responsible for finding their own clients. They constantly market their services and make sales calls. Most financial advisors purchase and sell a variety of financial products such as life insurance and securities.
What kind of training does a financial advisor need?
Financial advisors need at least a bachelor degree in finance, accounting, economics or related area. Many financial advisors have a master degree. Most financial advisors need the Series 7 and Series 63 or 66 licenses. The licenses give financial advisors the right to act as securities firm registered representatives and qualifies them to give financial advice. Financial advisors who decide to sell insurance need additional state licenses. Financial advisors must stay current on the latest advancements in the field and often attend training conferences and seminars.
Financial advisors can voluntary obtain the Certified Financial Planner (CFP) designation. The requirements include at least a bachelor degree, 3 years of related work experience, abiding by the code of ethics, and passing a comprehensive examination.
What are the prospects for a career as a financial advisor?
Employment of financial advisors is projected to grow much faster than average for all professions, increasing 41% from 2006 to 2016. Financial advisors are expected to be among the 10 fastest growing professions (1). Job growth will be driven by the millions of people planning to retire in the next 10 years that need financial assistance.
Job prospects are expected to be good with keen competition and financial advisors with strong selling skills will have the best job prospects.
How much do financial advisor make?
As of October 2009, financial advisors with less than 1 year experience earned average annual salaries between $26,506 and $40,750. Those with 1 to 4 years experience earned average annual salaries between $30,596 and $51,921 (2).
A career as a financial advisor is an excellent choice for individuals interested in helping people make good financial decisions. Financial advisors must have excellent communication and interpersonal skills because they emphasize customer service. Strong sales abilities, confidence, and ability to make customers comfortable are essential. They must be able to present financial concepts in ways that clients will be able to understand.