According to US News’ Career Rankings, financial planning is one of the best and highest-paying jobs in the country. A financial advisor in Denver covers goals ranging from children’s education planning to creating funds for a comfortable retirement. They help you in making better financial decisions and give you the right financial advice. However, this career is not right for everyone as initially, you’ll be making less money than most of your friends. You’ll only be able to make “big money” if you first build your relational capital. Are you looking to make a future in this career? Here are 14 things you need to know before becoming a financial planner.
- It Is A Traditional industry
The financial planning industry is dominated by financial advisors who are over the age of 50. The industry is evolving, but it is still bonded by some traditions. It can be a little frustrating for freshers with new ideas. Fresh advisors need to understand that the industry is already filled with people, ideas, and processes that have been around for a long time. If you wish to bend the old traditions, then the financial planning industry might not be for you.
- You Must Love People
Financial planners spend most of their time managing people rather than crunching numbers. The financial planning profession is relationship-based. Financial advice is given to people on the basis of their specific needs and objectives. Being curious about people and their stories is important to forge long-term and trustful relationships. So unless you like helping people and giving advice, you shouldn’t consider a career as a financial planner.
- You Must Be Success-Driven And Not Money-Driven
If you’re interested in financial planning to make money, then you are probably doing it for the wrong reasons. Aspiring planners should genuinely wish to help people and provide counsel. Experts tell advisors to be success-driven, not money-driven. Often young professionals are so attracted to the high commissions that they forget their primary purpose. A lot more goes into financial planning than finding big-money clients.
- You Won’t Earn Much In The Beginning
According to experts, in the first few years of your career as a financial planner, you probably won’t earn staggering amounts in commissions. It is advisable to set reasonable expectations in the early years before becoming a financial planner. Financial advisors make money after they build their relational capital. Not every advisor will make it far.
- Problem-Solvers Are Preferred
A good financial advisor must be a problem solver. Solving problems will enable clients to see you as credible and trustworthy. If you do not enjoy solving problems, then you are missing the primary skills for building a long-term relationship and a successful career.
- There Are Various Types Of Financial Advisors
Being a financial advisor does not mean that you have to stick to one role only. Their role involves much more than picking investments. The core aim of financial advisors should be to focus on comprehensive and strategic planning along with giving sage advice.
- You Should Be Willing To Sell
The financial planning industry is unforgiving for advisors who are not willing to sell. No number of financial planning certificates or degrees will sell your advice. Selling financial advice implies building trust and credibility, listening, and inspiring commitment.
- Self-Starters Prosper
Financial planners need to be self-starters. Whether you’re working for a large brokerage firm or as a registered investment advisor, you need a good amount of entrepreneurial spirit to succeed. If sales and being an entrepreneur appeal to you, only then should you consider financial planning as a career.
- One Might Need A CFP Credential And To Work For A Fiduciary
There are various routes to the financial planner career path: you can go the planning route by getting a CFP credential, or you could get your Financial Industry Regulatory Authority or FINRA securities licenses that enable you to advise on or sell investments. Getting the CFP credentials and working for a fiduciary will make you more credible.
- Experience is Key
It might be tempting to wait for the perfect job, but it is advisable not to put off getting started in your financial planning career. Experience is crucial when it comes to financial planning. You need to apply your knowledge to practice. So take up any role that adds experience to your career.
- Look For A Mentor
One of the best ways to succeed as a financial planner is to find a mentor early in your career. The right mentor will help you grow your practice by teaching you how to strengthen relationships with existing clients and attract new ideal clients.
- Consider Joining A Professional Association
Joining a professional association is a great step once you start working in the financial planning industry. Professional associations provide opportunities for developing leadership skills, building relationships, and serving others. Financial advisors can be successful when they build relationships with clients and invest in the community directly.
- The Financial Planning Career is Open to Many People
The financial planning career allows professionals from different backgrounds to bring expertise and unique experiences to the table. Therefore, your expertise in your current profession may be just what you need to kickstart your career as a financial advisor. Stockbrokers, money managers, insurance agents, bankers, estate planners, and others can build practices that are tailored to the unique needs of clients.
- Have Some Patience
If you’re planning to become a financial advisor you must keep in mind that you won’t gain experience overnight. It will take time to build up your skillset, reputation and technical knowledge. Remember only a few people will trust you with money management if you’re new to this field. So have patience and get things going.