How To Become A Financial Planner

by Dawn Papandrea

With all of the country's focus on the economy for the last couple of years, many people are rethinking the way they handle their own finances by seeking the help of financial planners. Financial planners have the skills and knowledge to help individuals or business meet their financial goals. If you're good with numbers, like working with and helping others, and want a career with good job security and high earnings potential, financial planning could be the perfect field for you.

How do I become a financial planner?
A bachelor's degree in accounting, business, economics, finance, financial planning, law, or math provides good preparation for a financial planning career. Courses in estate planning, investments, risk management, and taxes are also helpful. Once you've completed your schooling in financial planning, you may pursue the certified financial planner certification, or CFP certification, issued by the Certified Financial Planner Board of Standards Inc. The 10-hour certification exam tests your knowledge of the financial planning process, insurance and risk management, employee benefits planning, taxes and retirement planning, investment and estate planning, debt management, planning liability, emergency fund reserves, and statistical modeling.

Although certification isn't necessarily required to practice, most companies and individuals choose to hire financial planners who have that Certified Financil Planners (CFP) designation. Having passed certification means that you have at least a bachelor's degree, three years of financial planning experience, and the completion of college-level financial planning courses, plus a passing mark on the exam. You simply can't compete with those holding this credential if you don't have it.

To advance your financial planning career, you may also choose to pursue the Chartered Financial Consultant (ChFC) designation, issued by the American College (Bryn Mawr, PA). This financial planning designation requires experience, the completion of an eight-course program of study, and continuing education.

What will I learn in financial planning school?
Completing a financial program is essential to becoming a successful financial planner. A college degree, paired with fantastic interpersonal skills, are among the most important qualifications for financial planning professionals. Among the topics and coursework you'll need to conquer include income tax law, investment planning, insurance planning, estate planning, retirement planning, and other financial topics.

On a general level, you will also touch on basic business, ethics, and communications skills that go beyond what you learned as an undergraduate. That's because an advisor's job typically begins with a client consultation, which is why financial planners must portray strong communication skills. As a financial planner develops financial plans, he or she must also identify problem areas before making recommendations, something that calls for great problem-solving and analytical skills.

And, since a big portion of your success as a financial advisor depends on how well you communicate, research, and solve problem, a financial degree can help you sort those things out.