Financial planning jobs require a bachelor’s degree in a business related field. Although an MBA in finance is not an essential criterion, it can prove to be very helpful. A financial advisor can also become a Certified Financial Planner by clearing the Certified Financial Planner (CFP) examination conducted by the Certified Financial Planner Board of Standards. To become a CFP, you must have three years of relevant work experience and take an exam on:
- Financial planning process
- Employee benefits planning
- Insurance management
- Estate planning
- Risk management
You must also possess knowledge of:
- Planning liability
- Statistical modeling
- Debt management
A good financial planner understands investments and taxes and knows how to listen. Other skills that a financial planner must have are:
Key Skill Area
Requirement
People skills
High
Sales skills
Medium
Communication skills
High
Analytical skills
Medium
Ability to synthesize
High
Creative ability
Medium
Initiative
Medium
Financial Planning Jobs: Outlook
According to the US News and World Report, a financial planner is one of top twenty professions that have high growth potential. According to the Consumer Federation of America, there were more than 250,000 financial planners in 2008.
Financial planning jobs are expected to increase due to:
- Trend towards globalization
- Increasing complexity of investment activities
- Online access to financial information
- Economic volatility
- Shifting concentration of wealth
- Increasing competition
Financial Planning Jobs: Working with Individuals
Financial planners serve the varied needs of high-net-worth individuals. They help with:
- Retirement planning
- Income tax planning
- Managing cash
- Estimating and planning for future healthcare costs
- Investments during the earning years
- Funding children’s education
- Planning personal debt
- Planning for unforeseen events, like job cuts
Financial Planning Jobs: Earnings
As a financial planner, you can be compensated on a per hour fee basis, commission basis or both. In 2008, the median annual salary for financial planning jobs in the US was $70,000. While people working for companies earn marginally less, those working in franchisees earn the least. Although your earnings may be low in the early stages of your career, the potential will accelerate as start building your clientele.