How to Become a Financial Advisor in 2023-24? To get a job as a financial advisor you typically need a bachelor’s degree, on-the-job training, and a license or certification. If you are good with money and work with people, you can definitely become a financial advisor.
There are many ways to become a financial advisor, however most people do not know How to Become a Financial Advisor in 2023? What does this do? What qualifications are required? How much salary do you get? These are the common questions in mind and to address these questions we have come up with an 8 Step Guide to Getting Started How to Become a Financial Advisor in 2023.
What does a financial advisor do?
How to Become a Financial Advisor in 2023? Before this we will know what a financial advisor does? A financial advisor is a professional who helps and guides individuals and businesses in making decisions regarding their money. He helps in everything from understanding the needs and goals of the individual or business to formulating a variety of plans and strategies to help accomplish such goals through money management.
Financial advisors perform a variety of functions, such as financial planning, helping you reduce your tax liability by identifying tax-saving strategies, helping you save for retirement, or helping you with estate planning.
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Here are the specific steps to become a financial advisor and an 8 step guide to become a financial advisor to help you build a successful career.
8 Step Guide: How to Become a Financial Advisor in 2023
1. Earn a Bachelor’s Degree
Although there is no specific degree required to become a financial advisor, most employers prefer candidates with a bachelor’s degree in finance, accounting, economics, or business administration. These degrees provide a strong foundation in financial principles, investment strategies, and economic trends.
While a bachelor’s degree is the main requirement, students can continue their education and begin earning a master’s degree in the meantime. Many such high-level companies may require further education.
Financial Accounting: A book that introduces the basic principles of financial accounting, including financial statements, double-entry bookkeeping, and financial analysis.
Investing: Examines the principles of investment analysis and portfolio management.
Corporate Finance: It helps cover the financial management of corporations. It includes topics like capital budgeting, financial forecasting and risk management.
Institutions and Financial Markets: This course is helpful in exploring the structure and functioning of financial markets including the stock market, bond market and derivatives market.
Economics: It provides an overview of economic principles such as supply and demand, market structure, and economic growth.
2. Get an Internship
How to become a financial advisor? The next step depends on whether to join a financial advisor firm or work with a sole financial advisor. If you are in school, it is advisable to take a break in between and do an internship in the field. It’s important to pursue an internship to become a financial advisor as it can provide you with useful experience, expand your network, and potentially help you establish relationships. When is the Tax Deadline? Why Most Americans Miss the Deadline
The best time to do an internship is while you are studying in school, because then you get a lot of time during breaks. If you’re looking for a job as a financial advisor, look for a firm that will pay you to get a license. There are a lot of companies in 2023 looking for people with a sales background to sell services, so if you have experience be prepared to discuss it.
3. Gain Relevant Work Experience
To become a financial advisor in the United States, it is important to gain relevant work experience, which helps you apply the theoretical knowledge acquired in education to real-world scenarios, develop practical skills, and build a professional network.
- Certified Financial Planner (CFP)
- Chartered Financial Analyst (CFA)
- Chartered Financial Consultant (ChFC)
- Personal Financial Specialist (PFS)
To become a CFP, you must also gain three years of relevant work experience in the financial planning industry. This experience can be gained through internships, entry-level positions at financial planning firms, or working as an assistant to a financial advisor.
4. Pass the CFP Exam
Here’s what you need to do if you want to pass the CFP Exam: The CFP exam is a comprehensive six-hour exam. It tests your knowledge of financial planning concepts and your ability to apply those concepts to real-world situations. Passing the CFP exam can earn you a valuable certification that can help you advance your career in financial planning. Here, The 10 Hottest Startups in the US: Where to Work in 2023
5. Obtain FINRA Licenses
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees the securities industry in the United States. In order to sell securities to clients, you are required to obtain the appropriate FINRA license.
The most common FINRA licenses for financial advisors are the Series 6 and Series 65 licenses, as follows:
Series 6: This qualifies individuals to sell mutual funds and variable annuities.
Series 65: This is for those who want to become investment advisor representatives and make investment recommendations to clients or manage investments on their behalf.
6. Pursue Professional Development
Financial advisors must stay abreast of the latest changes in the financial industry and regulations. There are many ways to obtain such information, including attending continuing education courses, reading industry publications, and participating in professional organizations.
7. Build a Strong Network
Networking is important in any field, even if you become a financial advisor. However, it is an especially important objective for financial advisors. How to become a financial advisor? By knowing this, you get the job but are not able to know how to create a network? Because this helps in generating leads and growing your business.
Therefore, financial advisors should build a strong network of colleagues, clients and referral sources from which leads can be generated and nurtured.
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8. Obtain Professional Certifications
While not all employers require professional certifications, obtaining them demonstrates your commitment to your profession and your knowledge of the financial industry. Some of the most common professional certifications regarding financial advisors include the Certified Financial Planner (CFP) designation, the Chartered Financial Analyst (CFA) designation, and the Chartered Life Underwriter (CLU) designation.
Certified Financial Planner (CFP): A credential awarded by the Certified Financial Planner Board of Standards, which requires a bachelor’s degree, at least three years of work experience in finance, passing an examination, and also adhering to a professional code of conduct. .
Chartered Financial Consultant (CHFC): This is the less well-known designation. This gives you the experience of college-level courses and allows you to cover significantly more material than the CFP designation.
Chartered Financial Analyst (CFA): This credential is offered by the CFA Institute and requires you to pass three specialized exams and complete at least 4,000 hours of relevant work experience.
Retirement Income Certified Professional (RICP): This designation is awarded by the American College of Financial Services to financial advisors who have three years of professional experience and at least a high school diploma.
Financial Advisor Salary in 2023
How to Become a Financial Advisor in 2023? And after knowing the 8 step guide to get started, some people may have a question in their mind that what will be the Financial Advisor Salary in 2023? Here’s the answer to your question:
This can also vary depending on financial advisor experience, location, and the specific type of financial advisor in the United States, so use your nearest location to find out the Financial Advisor Salary. However, as of October 2023, the average annual salary for a Financial Advisor in the US is $101,508. The top 10% of financial advisors earn more than $137,000 per year, while the bottom 10% earn less than $26,500 per year.