Financial Planner

There are many different roads to becoming a personal financial advisor or a financial analyst. There are no specific education requirements for many financial planner positions. Technically, it is possible to become a financial planner without a college degree. However, as the competition for jobs and clients can be great, a strong educational background is often quite beneficial.

Financial analyst may require a specific degree to be hired by a company. Many financial analysts and personal financial planners have bachelor's degrees in finance, business administration, accounting, statistics, or economics. Personal financial advisors typically have fewer educational boundaries than analysts and may pursue mathematics, law, political science, or other degrees as a foundation. A master's degree in business administration is acquired by many financial planners as well.

Financial analysts are often licensed by the Financial Industry Regulatory Authority (FINRA). Depending on the area of specialty, different licenses may be required. Personal financial advisors almost inevitably will need the Series 7 and Series 63 or 66 licenses, and additional licenses are required to sell insurance.

Most licenses are acquired after being hired by a firm or company. Independent personal financial advisors often have some relationship with a company before becoming licensed as well. Personal financial planners may undergo on the job training as new hires at a financial company.

Certifications may be obtained at some point in ones career to advance in the industry.

The Chartered Financial Analyst (CFA) designation, sponsored by the CFA Institute may be awarded after four years of work experience in a related field and a passing score on three examinations. A bachelor's degree is also required to become certified.

CFP certification, issued by the Certified Financial Planner Board of Standards, requires a bachelor's degree and specific educational credits. Certified Financial Planners are expected to have an extensive working knowledge of the field, adhere to a code of ethics, and pass a comprehensive examination.

Financial planners specialize in analyzing financial information and advising clients on how to invest and allocate their money. Financial planners work for a wide variety of clients and may handle small personal finances or multi-million dollar accounts.

Financial analysts work for businesses and companies while personal financial advisors have individuals for clients. In order to make successful investment advice, analysts examine the expenses, earnings, and other financial factors of the institution. Then, using an expertise on the business and the market as well as and statistical software packages, the analyst guides the financial decision of their client. Financial analysts may write reports or make presentations to make their recommendations.

Financial analysts that work for companies with vast amounts of money to invest are said to work on the buy side and help clients develop investment plans. Analysts that work for securities dealers and aid in selling products are said to work on the sell side.

Analysts often have specific specialties such as mergers, debt management, or the utilities industry. Experienced analysts may manage a team of other analysts for a large scale client.

Personal financial advisors work for individuals as opposed to companies and institutions. Financial advisors help individuals and families to make decisions regarding their personal finances and often advise on retirement plans, college funds, and estate planning. While some personal financial advisors work with a firm or company that specializes in offering financial advice, many are self-employed. Personal financial advisors are accountable for maintaining a working knowledge of stocks, bonds and mutual funds as well as providing their clients with a proper understanding of these investments.

Personal financial advisors have the responsibility of building their own clientele and the marketing of their services is a large part of the job. Networking is essential to financial advisors and sales strategies often make up a great deal of an advisors work time. Advisors may give lectures or perform sales calls in order to attract clients.

Potential clients receive a consultation in which the advisor analyzes the financial circumstances and makes an initial plan of savings and investment. Once a client is established, the advisor meets with them intermittently to make updates in conjunction with any life changes or market changes that may affect the client's assets.

Financial advisors that work for very wealthy individuals are known as private bankers or wealth managers. These advisors tend to work more comprehensively with fewer clients than other personal financial advisors. Wealth managers meet with their clients frequently and often have direct responsibility for financial decisions.

A financial advisor's income is largely dependent on fees and commissions from the securities and other investment sales they make to clients. Some financial advisors charge a flat per-hour fee for services.

Personal financial advisors often work business hours from private offices or from home. Advisors regularly put in extra time on evenings or weekends to perform research, attend or conduct lectures and classes, or meet with clients.

While analysts and personal advisors have different responsibilities, many of the same skills make them successful. Strong social, communication, and sales skills are essential to financial planners because marketing of services is such a large part of the job. Such skills are also significant in working with established clients. Math, computer, and problem-solving skills are also key. It's important to have a broad understanding of business, workings of the economy, tax laws, and money markets.

The median annual income is $66,590 for financial analysts and $66,120 for personal advisors. The middle 50 percent of analysts earned between $50,700 and $90,690 in 2006 while the middle 50 percent of personal advisors earned between $44,130 and $114,260. Analysts often depend heavily on bonuses that are earned based on the accuracy of their financial predictions. Personal advisors may charge hourly fees for their services or earn their money through fees and commissions on securities and insurance purchases.

Alan Greenspan, the former chairman of the Federal Reserve, has been extremely influential in the field of financial planning. He is an economist and consultant for his firm, Greenspan Associates LLC.

Harold Evensky and Deena Katz are a married couple who are also a wealth management team. They are in control of their private practice, Evensky & Katz, in Texas.

There are two major agencies for financial planning accreditation. One of them, the ,Association to Advance Collegiate Schools of Business (AACSB) was founded in 1916. The other, the Association of Collegiate Business Schools and Programs (ACBSP) is much more recent, being founded in 1988.

Financial planners are in high demand right now and the job market should continue to grow much faster than the average for all occupations, especially for personal financial advisors.

New York City is an excellent place for financial planners to find jobs, and is by far the top city in the nation for financial planner jobs. Chicago, Illinois and Houston, Texas are tied for a very distant second.

However, while there should be an abundance of new positions, there is expected to be strong competition for jobs. Credible education, sales skills, and certification can help aspiring financial planners to thrive in the growing market.