A career in financial planning is a good prospect for people who wish to go into this sector that has a very good employment outlook. Financial planners assist people or companies with their financial portfolio that involves their incomes, investments, and savings. Some of them work independently and help their clients through group or individual evaluation and planning strategies that involve their current and future finances and investments. Others hold consultative business operations that allow clients to come in through at anytime or on a regular basis.
Private companies, large corporations, financial institutions or firms, and insurance companies also have financial planners in their midst. A job in financial planning with these companies or institutions means technical assistance in the selling of their products and services. Examples of these financial products and services are mutual funds, insurance, tax-sheltered investment plans, individual retirement accounts, family budgeting schemes, or real estate investments.
Financial planning work also involves long-term and short-term investments and financial planning for individual and group clients. Financial planners analyze and help their clients decide on the best kinds of investments, choosing the right time to do them, as well as come up with a clear and time-bound plans for these, especially if it is a major investment. Financial planners are also known as financial consultants, personal financial advisers, or personal financial analysts.
Requirements
People who wish to get into a financial planning job need to be familiar with laws and regulations that cover tax shelters, insurance, trusts, retirement plans, and must be able to understand and interpret these laws and regulations in order to be efficient at their work. Because they deal with individual, groups, private companies, and financial institutions, they also need to have good communication and interpersonal skills, have good selling skills, problem-solving and analytical skills, and be creative and confident.
One can always choose to become self-employed or work on a consultancy basis or get employed by private financial companies or institutions. Building a financial planning career, however, starts with a good academic background. While some employers are not strict on this aspect, it may well serve to be a clear advantage when one has a bachelor's degree in economics, accounting, business law, marketing, or any other business or finance-related degree. One must also have good mathematical and accounting skills to be good at financial planning work.
A career in financial planning can be accelerated with a Certified Financial Planner (CFP) certification from the Board of Standards after completing an exam that focuses on insurance and risk management, financial planning processes, retirement planning, and taxes. While this certification is not a basic requirement to become a financial planner, it can help one get ahead with his or her career especially when working for a large corporation or financial firm. A financial planner who specializes in securities can ask the National Association of Security Dealers for a certification.
An individual whose job in financial planning deals with stocks, securities, and bonds need to secure bonding and licensing requirements, depending on the state they are in. Others go on right ahead with trainings directly relevant with their field of specialization whether in stocks, investments, taxes, banking, securities, or insurance.
If one chooses to work independently or as a consultant from the very beginning of his or her financial planning job, one need to work much harder and train well to get more clients and build their credibility and reputation well. Self-employed financial planners often meet with their clients at their homes, in group meetings, or during conferences. Being able to build a good base of clients and expand their expertise to accommodate more usually pays off well.
A financial planning career, according to the Bureau of Labor Statistics has a good potential until 2014 because of the growing investment opportunities and alternatives and the changing tax laws that will allow more people to make more investments. The increasing number of retirees will also lead to a higher demand for more financial planners in the coming years because of this population's need for good retirement plans.
A career financial planning can work both ways for those who are self-employed and those who are employed in companies or financial institutions. The employed financial planner's career advancement is also determined by his performance and ability to rake in big commissions. One can also choose to open his or her financial planning business after many years of experience on the job or become a licensed security broker.
Salaries or earnings vary for each financial planning job. Self-employed financial planners usually charge a flat fee for every client's investments. Others do an hourly rate for their services. Those who are employed to sell financial products and services are paid by commissions. Depending on the size and type of company, some also get a base pay apart from the earned commissions. The BLS 2004 data reveals the median annual salary for financial planners at $62,700, the senior ones, however, get as much as $108,280 a year.
Final Thoughts
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