How do I Start a Financial Planning Career?

A financial planning career involves helping clients make financial decisions relating to retirement, investment vehicles, insurance policies, and other general planning. The career typically requires a degree in accounting or a similar field such as finance, economics, or law. In addition to education, individuals will often need a series of licenses that allow them to sell securities and investments to their clients. Professional licensure is also an option for getting started in a financial planning career. This prepares a person for a job at a financial services firm or private practice.

Financial planning often involves selling products to clients. The background in education and professional licenses help increase the individual’s knowledge about the impact of financial decisions. However, working at a financial services firm requires the individual to learn how to sell securities, retirement accounts and programs, bonds, and other items. This requires more salesmanship than technical knowledge for being in a successful financial planning career. Individuals can also tailor their knowledge to a specific portion of the financial planning field, such as retirement accounts, college financial planning, or other services.

Most governments heavily regulate the sales of securities, mutual funds, and bonds. This ensures that financial planners and other individuals in similar careers do not attempt to oversell a company’s investments. Additionally, these licenses help train individuals on how to run a brokerage office that involves the supervision of other agents selling securities investments. The licenses are typically individual to each other, meaning a candidate must pass several exams and engage in continuing professional education. Not having these licenses can limit the growth and opportunities of a financial planning career, even preventing individuals from working in the career field.

Professional certification for a financial planning career includes the certified financial planner, charted financial analyst, and chartered financial consultant licenses. The certifications are offered by the Certified Financial Planner Board of Standards, CFA (Chartered Financial Analyst) Institute, and The American College, respectively. Each license offers international recognition for having specific knowledge on financial planning. Different countries may prefer or require one over the other, depending on government regulations for selling securities.

Once individuals have fulfilled the necessary education, licensing, and certification requirements for their financial planning career, they will need to determine where they desire to work. Large financial services firms, including insurance companies, are common targets for financial planning jobs. However, individuals can also go into business for themselves once they gain knowledge and insight into the industry. Gaining recognition through major companies can help an individual market his own business and develop a clientele for financial planning.