FINANCIAL ADVISOR CAREERS: AN INTRODUCTION

Learn the ins and outs of personal and business money management.

Becoming a financial advisor necessitates the completion of a formal post-secondary degree program, successful state (or SEC) registration, and a commitment to providing competent and honest financial advisory services to clients. The path to becoming a professional financial advisor can be direct or it may include a number of twists, turns and side trips — depending on past education and experience. Anyone considering the financial advisor profession must answer a number of questions, including: Am I willing to commit to years of formal education and training? Will I seek employment with a large firm or business, or would I prefer to work independently? Do I need to specialize in one specific area of the field?

The following how-to guide is meant to act as a starting point for anyone considering the financial advisor profession. Included is a description of the financial advisor’s basic job duties, an explanation of education and training options, necessary skills, and a suggested set of steps that everyone should consider following in the pursuit of a financial advisor career.

A Look at Financial Advisor Careers

Financial advisors help people manage their money by providing advice and guidance on various financial matters including taxes, investments and insurance options. Some financial advisors have very diverse backgrounds and skills, while others focus on one particular area, such as retirement or tax law.

Financial advisors work in a variety of settings, depending on employment status. For example, those employed by a business work in an office setting, while independent contractors either work from home or rent a small space to better serve their client base. Although financial advisors can work a regular 40-hour week, some work considerably more each week, especially to cultivate clients or during tax season.

Financial Advising In-Depth

With a bachelor’s degree in a related field and the proper credentials, financial advisors are prepared to take on the typical duties in the field. This often includes complex financial analyses including budgeting, trend analysis, forecasting, and financial modeling; developing investment strategies tailored to a client’s needs, including assessing client tolerance for risk, business analysis, valuation, and portfolio management; and advising clients on financial products and services available to them.

In addition to the vast array of analytical duties, cultivating clients is pivotal to success as a financial advisor. This is true regardless of employment setting or status. Establishing and growing a strong client base often requires attending industry related conferences, networking events or even teaching finance courses at a local college to gain exposure.

A majority of financial advisors work for finance and insurance companies or investment firms; however, some advisors are self-employed.

Skills Financial Advisors Need

Financial advisors tend to possess a wide range of business, marketing and sales skills. The ability to analyze and organize data is a virtual must, and a strong background in mathematics facilitates accurate and extensive number-crunching. Computer skills are also important, as financial advisors are often required to use proprietary programs for planning and consolidation of data.

Many non-financial skills are also necessary, however. For example, financial advisors must have excellent communication and sales skills. They must be able to communicate with people of different financial backgrounds and engender a sense of trust. Often times, an advisor will need to present complicated information to a client (or potential client), so he or she will need to be able to relay that information clearly and in a manner that is easy to understand. Strong organization skills and a keen attention to detail are also important. Advisors will meet with several clients with very different financial goals, questions and needs throughout the day and it is crucial that they keep all information accurate. Lastly, in order to build and maintain client-relations, advisors must be able to adhere to the industry’s set of ethical standards, including integrity, objectivity, fairness and confidentiality.