Things You Should Know to Become a Successful Financial Advisor

Being a financial advisor is a great job for anyone who is willing to develop their skills in giving advice and solving financial problems of other people. The first step in becoming an investment professional is to complete a successful state registration and post-secondary degree program. In order to become a financial planner, you have to commit in giving your honest financial advice and services to your clients.

If you want to become an investment professional, you have to undergo formal education and training for many years. Financial planners help their clients to manage their money by giving advice on different financial issues such as insurance options, taxes and investments. Some financial planners are limited as to their services and they focus only in one particular field such as tax law or retirement while others have a wide range of experience and skills.

History of Financial Advisors in the U.S

In 1969, Loren Dunton started a society called the Financial Counselling Ethics which later became a financial planning practice.

In 1973, the first graduating class of financial planners was held in the College of Financial Planning. During the 1970’s, economic and political pressures deeply affected the markets.

In 1986, many people who did tax planning were dismayed when tax deductions for businesses became illegal because of the new tax reform act of 1986. In that same year, more people started to realize that they require the help of investment professionals to solve their financial problems.

To become a successful financial advisor, you need to have a bachelor’s degree and the right credentials. This type of job requires that you have the skills to do complex financial analyses such as trend analysis, budgeting, financial modelling and forecasting. Moreover, you should also have the skills required to develop investment strategies that meet the needs of clients such as advising clients on services and financial products, business analysis, portfolio management, valuation, and client assessment for risk tolerance.

Get a Bachelor’s Degree in Finance-related Subjects

A financial advisor should have a bachelor’s degree in order to get professional certifications. Students who are interested in becoming a financial planner should first complete a college degree in finance, economics, business, mathematics, accounting and computer science.

Most financial planners are required to take MBA programs to meet the needs of high-end clients or major firms. MBA programs are being offered in many reputable colleges and universities in the United States.

Get the Right Credentials

There are many professional credentials given to financial planners. These credentials are given by different business organizations and professional associations. In order to acquire a credential, you must first have to undergo training and examination. The most highly-respected credentials include Certified Financial Planner or CFP, Chartered Financial Analyst or CFA and Chartered Financial Consultant or ChFC.

The credentials given to an investment professional may vary depending on their area of specialization. For instance, a financial planner who specializes in estate management will probably choose to earn the Certified Financial Planner Certification.   

Investment professionals have many duties but the most important factor in determining your success is how you engage with your clients. You must establish a growing network of clients and it often requires you to attend networking events and industry related conferences. You can also gain exposure by teaching finance courses at college universities. Most financial planners work for investment firms or insurance companies but some of them are self-employed.