How to Become a Personal Finance Advisor?

By: Sr vini

If you are good at providing monetary advice like how to save, spend and invest wisely, then the career of Personal Finance Advisor can be ideal for you. Financial planners work with individuals and businesses to assist them in achieving their long-term financial goals. It is possible to earn a lot of money as a personal financial counselor while working from home. But how to become a Personal Finance Advisor? What are the requirements & how much time does it take?

One can become a personal financier advisor with a bachelor’s degree in any subject and a proper certificate after an internship or training under a certified firm or financial arm. Basically, you have to graduate and then work under a financial advising firm. After this, you can go to get a license in this field, which further helps you with your business. 

Let’s get to know in detail about the career as a Personal Finance Advisor.

How to Become a Personal Finance Advisor?

Personal Finance Advisor entails working with customers to help them overcome their anxieties, such as the possibility of a recession or running out of money. In addition, financial planner creates individualized financial plans for each of their customers, including wills, college savings programs, and retirement strategies. 

If you want to join this career, here is how you will become a personal finance advisor:

1) Become a Graduate

Financial advisors need a bachelor’s degree to work in the field. Many businesses prefer candidates who have a background in finance, accounting, or some other aspect of business, but this is not always the case. 

Financial advisors might be generalists, or they can specialize in retirement, taxes, estate planning, insurance, or risk management. Some enroll in an MBA school after a number of years in the field while maintaining full-time employment.

2) Go For Internship

Internships provide aspiring financial advisers a chance to put their classroom knowledge to the test in the real world. A year or more of close collaboration with more seasoned financial advisors is standard practice for most employers. Consider an internship before applying for a full-time position if this is the case for you.

A lot of the friendships and connections you make as an intern will stay with you throughout your career. Internships enhance your professional profile. Most businesses often prefer people with work experience.

3) Obtain Necessary Licenses & Certifications

Numerous certificates are available for financial advisors after three years of practice. Typically, certification demands specialized training or courses, an examination, and ongoing education. The National Association of Personal Financial Advisors (NAPFA) suggests at least one of the following credentials:

  • Chartered Financial Analyst (CFA)
  • Personal Financial Specialist (PFS)
  • Certified Financial Planner (CFP)
  • Chartered Financial Consultant (ChFC)

Other licensure examinations may be necessary for different responsibilities within the financial adviser business, such as if you have a management or compliance role at your company, which involves passing certain exams at the principal level.

4) Landing a Job

Ask for help drafting a cover letter and a resume from the career center at your college. Use the resources of other students, professors, and professional organizations to obtain internships and jobs and to stay abreast of industry developments.

A career as a financial advisor can get off to a strong start with one of the large broker-dealers. Those interested in managing investments rather than clients they educated a lot about cold-calling and how to establish a book of business.

5) Get Additional Education

Financial advisors frequently return to school to acquire a master’s degree or even a Ph.D. Your job requires you to provide them with valuable financial advice. 

Numerous qualifications in financial advising necessitate ongoing education, although senior roles may require a graduate degree. A finance graduate degree, often a master’s in finance (MSF) or an MBA with a finance focus, can provide a competitive advantage.

What is a personal financial advisor salary?

According to Indeed, the average yearly salary for a financial advisor is $74,010, with a commission of $30,366. Annual pay and incentives are standard for financial advisors. Several companies offer a base wage if specific (sales) targets are met for the first six, twelve, or even eighteen months.

Personal financial adviser employment is expected to rise by 5% between 2020 and 2030, less than the national average, according to the U.S. Bureau of Labor Statistics. Each year, the job market for financial advisors is predicted to grow by 21,500 positions.

How long does it take to become a personal finance advisor?

Depending on the course taken to become a financial advisor, it could take anything from less than five years to seven or more years. However, the quickest way to earn your series licenses is likely through FINRA, which requires no prior work experience. 

You might study and pass your tests in a few months after obtaining your bachelor’s degree. However, FINRA licenses alone do not equip you with all the requisite information and skills to manage every real-world circumstance. Some things can only be learned by on-the-job experience.

What degree do you need to be a personal financial advisor?

To become a financial advisor, a bachelor’s degree is normally required. Financial advisors must have a bachelor’s degree, although it does not need to be in a specific major.

You do not need to obtain a degree in a financially relevant field; however, having one would likely aid you in the tests. Finance, economics, accounting, or business education prepares students for careers as personal financial advisors.

Read Also: How to make money without a job?

How to become a financial advisor without a degree?

Numerous employment does not require a college degree in order to have a variety of professional opportunities. Some positions may have an implicit degree requirement, but it is possible to create a career without one, including as a financial advisor.

Without a degree, you must gain particular licenses by completing exams such as the Series 65 exam and the Securities Industry Essentials exam to become a financial advisor. Additionally, certain states demand extra certifications.

Bottom Line

This was all about how to become a personal finance advisor. Now you know the whole process of becoming a Personal Financial Advisor. Although you can become a Personal Financial advisor without a bachelor’s degree too, you need to pass certain exams and certifications to become a legal and authorized Personal Financial advisor. 

We hope this article was helpful & informative. Please leave your valuable thoughts & suggestions in the comments below!

Thank you for reading!