How to Become a Financial Advisor
How to become a financial advisor is what people adept at handling their own and other people’s finances must find out before entering the investment management arena. Recent job survey results rank financial advisor as among the best jobs in America, fetching an average financial advisor salary of over $120,000.
Financial advisers provide clients with useful pointers on investment strategies, mutual funds, bonds, and stocks, regularly meeting with and giving them advice based on current financial information. They are on hand to assist clients in making major investment decisions or revising investment strategies following milestones such as marriage, having children, and retirement.
Facts on How to Become a Financial Advisor
The following steps clearly explain how to become a financial advisor.
The first step toward a financial advising career is to pursue a bachelor’s degree in business administration or a specialized field like finance, accounting or financial management. Those taking up business administration programs attend classes in business, ethics, accounting, and finance while those undergoing finance-related programs may learn about specific concepts such as risk management, financial planning, and investments.
To become a financial advisor, the next step would be to pursue higher education, specifically a Master of Science in Finance or a Master of Business Administration degree. Fixed income analysis and financial accounting are among the courses included in these post-graduate programs.
Following graduation, aspirants must apply for their license and registration. In most states, personal advisors are required to obtain a license prior to employment. License applicants must also take and pass a qualifying examination. Once they earn their license, financial advisors are required to register with either the U.S. Securities and Exchange Commission or their respective state agencies..
With the proper license and registration, aspirants can now begin to accumulate work experience. They may take the self-employment route and learn how to become an independent financial advisor. Or they can seek employment with companies in the financial industry.
As soon as they are gainfully employed, financial advisors must work toward getting certified by the Certified Financial Planner Board of Standards. The board allows only those who have earned or are currently pursuing a bachelor’s degree from an accredited college or university to take the test. Apart from the exam, applicants must undergo an ethics review to merit the title Certified Financial Planner (CFP).
Follow these pointers on how to become a financial advisor and you’re on your way to a rewarding investment management career.