How to Become a Financial Advisor (with Images)

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How to Become a Financial Advisor (with Images)
How to Become a Financial Advisor (with Images)

Video: How to Become a Financial Advisor (with Images)

Video: How to Become a Financial Advisor (with Images)
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Financial advisors guide people regarding investment strategies, investment funds, bonds and stocks. They might work at a bank or brokerage firm, or at an insurance company. To become a financial advisor, you generally need at least a bachelor's degree and some experience in the financial services industry. Most consultants also have professional certification.

Steps

Part 1 of 3: Acquiring Necessary Skills and Education

Become a Financial Advisor Step 1
Become a Financial Advisor Step 1

Step 1. Get a bachelor's degree in a finance-related career

Most consultants have at least an undergraduate degree in a discipline such as economics or accounting science. Choose an area that interests you and that you want to pursue as a profession.

  • Take introductory courses on estate and retirement planning, income tax, investment strategies, and risk management. Then take advanced courses in the areas that interest you most.
  • The main academic backgrounds for a financial advisor are economics, accounting science, actuarial science, math, and computer science.
Become a Financial Advisor Step 2
Become a Financial Advisor Step 2

Step 2. Look for certification preparation programs

If you are looking to obtain a professional certificate, a program designed specifically to prepare you for the certificate exam can help you a great deal.

In some countries, such as Canada, the CFP is mandatory for anyone wanting to work as a financial advisor, although other certifications and licenses are accepted as equivalent

Become a Financial Advisor Step 3
Become a Financial Advisor Step 3

Step 3. Look for an internship while still in college

Many financial advisors start their careers as interns before they finish their degree. If you get the internship, it can give you contacts and experience in the financial services business.

  • The college will usually have information about available internships and other resources to help you get a place.
  • Some internships may count as credits towards your degree.
Become a Financial Advisor Step 4
Become a Financial Advisor Step 4

Step 4. Take some psychology courses

As a financial advisor, you will spend a lot of time advising people. A little understanding of the way they think and behave can help you advise your customers and predict the market.

Psychology courses also help you develop your interpersonal and communication skills, which will be invaluable to you when you start working with clients

Become a Financial Advisor Step 5
Become a Financial Advisor Step 5

Step 5. Go further with a master's or doctoral degree

A graduate degree will make you a more valuable financial advisor. You can earn a pay raise and, if you ever start your own business, charge more for your services.

  • Vocational and postgraduate degrees also open other doors. For example, if you earn a law degree, you can provide legal and financial advice to clients.
  • If you have a master's or doctoral degree in finance, business or economics, you may be able to skip certification exams.

Part 2 of 3: Gaining Work Experience

Become a Financial Advisor Step 6
Become a Financial Advisor Step 6

Step 1. Find a junior position in the financial services industry

Even before getting your degree, a junior-level position can help you understand the work involved. It will also give you the opportunity to talk to financial advisors.

  • For example, you might work as a bank teller or as an employee of a brokerage firm.
  • Insurers can also help you prepare for a career as a financial advisor, especially if you want to work in the retirement planning industry.
Become a Financial Advisor Step 7
Become a Financial Advisor Step 7

Step 2. Take a training

Larger investment firms often place new financial advisors through a formal training program where you work side-by-side with a senior advisor or receive additional education for certifications and licenses.

  • These programs typically last a year or more and give you the skills and knowledge you need to pass exams and become a successful financial advisor.
  • Larger and better-established firms tend to have highly competitive training programs. To be accepted, you will need high grades and impeccable references. Also, look for other opportunities that can set you apart from other candidates, such as research projects and competitions.
Become a Financial Advisor Step 8
Become a Financial Advisor Step 8

Step 3. Try starting at a smaller company

While training with large investment firms is highly competitive, smaller firms often offer more hands-on learning opportunities and exclusive time with a senior advisor.

  • Independent investment firms also typically have access to a greater variety of products than some of the larger companies, which will give you broader experience and more career flexibility.
  • Especially for smaller companies, look into the past and reputation of them and the people who work there. It's no good getting caught in fraudulent or unethical activities, especially early in your career.
Become to Financial Advisor Step 9
Become to Financial Advisor Step 9

Step 4. Work to open your firm

You may be satisfied working for an established company or decide that you want to venture out on your own. Starting your own firm will give you more flexibility and control over your business.

During training, focus on how to simplify the work process and make it more efficient. Learn the policies of the company you're working for, but think about how you can adapt those policies to work better

Part 3 of 3: Obtaining Licenses and Certifications

Become a Financial Advisor Step 10
Become a Financial Advisor Step 10

Step 1. Decide what kind of work you like

Financial advisors are active in a variety of fields and may hold a variety of professional licenses and certifications. Once you know which path you want to take, you'll know what certifications or licenses you need.

  • Licenses and certifications can get expensive if you get more than one, and having multiple of them won't necessarily increase your value as a financial advisor. Choose wisely what you want to do.
  • For example, if you like more complex global transactions and overseas investment opportunities, you can get a certification as a Chartered Financial Analyst (CFA).
  • If you plan to work for an insurance company, you must be a licensed insurance agent.
Become a Financial Advisor Step 11
Become a Financial Advisor Step 11

Step 2. Become a Certified Financial Planner (CFP) if you want to be a personal finance consultant

The CFP is one of the most flexible certifications available to financial advisors. In some countries, you cannot work with the public as a financial advisor without this certification.

  • This designation does not permit the purchase and sale of investment products; it is just a professional credential. You may need other licenses depending on the type of work you want to do as a consultant.
  • To earn the CFP, you must have an undergraduate degree, three years of experience, and take a two-day, 10-hour exam. You can take exam preparation classes at a university or study on your own.
Become a Financial Advisor Step 12
Become a Financial Advisor Step 12

Step 3. Get the CFA if you want to invest in a career focused on global investing

This certification primarily prepares you to handle large global investment portfolios or to be a financial research analyst.

  • To be eligible for the CFA, you need at least a bachelor's degree and four years of experience as a financial advisor. The CFA is offered by the CFA Institute, which offers a self-directed study program divided into three phases, with a six-hour exam at the end of each phase. To get certified, you need to become a regular member of the institute.
  • The CFA is a world-renowned career distinction that will help you stand out in the competitive market for financial advisors. It also gives you a chance to work with big investment firms like Merrill Lynch and JPMorgan Chase.
Become a Financial Advisor Step 13
Become a Financial Advisor Step 13

Step 4. Become a Registered Investment Adviser (RIA) to get paid for investment advice

Other financial advisors may receive a salary from their employers or commissions for the sale of investment products. But if you have an RIA, clients will pay you directly for investment advice.

  • You don't need an RIA if you're getting paid for general investment advice. But if you are giving clients specific investment advice regarding buying and selling a commodity in question, you will need to be registered as an investment advisor.
  • This designation may require other licenses and registrations depending on your country's laws and the size of the portfolios you manage.
Become a Financial Advisor Step 14
Become a Financial Advisor Step 14

Step 5. Register with the securities commission

Depending on the amount of investments you manage, you may need to register the bonds. You will have to pay a fee to register and may have to take tests or demonstrate your competence as a financial advisor in another way.

  • Generally, advisors who buy and sell investments and commodities directly on behalf of their clients need to register with the securities commission. This requirement typically applies to those who manage portfolios totaling more than R$550,000 in investments.
  • In addition to national commissions, you may also need to register with state or local regulatory bodies.
Become a Financial Advisor Step 15
Become a Financial Advisor Step 15

Step 6. Obtain the necessary licenses to work with insurance

If you are working with an insurance company, you will need to be a licensed insurance agent. This license usually requires you to take a test to show your knowledge of the laws regarding insurance.

Insurance licenses are usually the easiest a financial advisor could need. You only have to pay a fee and take a two or three hour exam

Become a Financial Advisor Step 16
Become a Financial Advisor Step 16

Step 7. Follow with continuing education

Many licenses and certifications have a continuing education requirement that you must meet to maintain them. It's also normal to have to pay a renewal fee every year.

  • For example, even though an insurance license is one of the easiest for a financial advisor to obtain, it often requires a good investment in continuing education to maintain.
  • Continuing education also keeps you up to date with market and investment trends that can have a direct impact on your clients and their investment success.
  • Don't think of continuing education as something you have to do to keep your license, but as something you want to do to be the best financial advisor you can be.

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