Getting the Education You Need to be a Financial Advisor

If you’ve decided to become a financial advisor, your first step should be to acquire the required education and training. While a bachelor’s degree is not a strict requirement, it is strongly preferred in the field and will give you a distinct advantage. A degree in statistics, economics, finance, mathematics, law or business would be appropriate. Try to include courses in investments, taxes, estate planning and risk management while you study toward your degree. If you have the time and financial resources, immersing

yourself in study as a full time student can be a very valuable experience. For those with time or financial constraints, explore the options of part-time study on campus or online.

In addition to a degree, certification is a strong credential to enhance the reputation of a financial advisor. Personal financial advisors may want to obtain the Certified Financial Planer credential, (CFP). This certification is issued by the Certified Financial Planner Board of Standards, and requires the applicant to have completed certain educational requirements. In addition, the applicant must pass a comprehensive exam which assures that he/she has excellent knowledge of the financial planning process, employee benefits planning, investment and estate planning, taxes and retirement planning, and insurance and risk planning. Candidates are also required to have a working knowledge of debt management, statistical modeling, emergency fund reserves, and emergency fund reserves. You should plan on spending two to three years of study to complete these programs.

Personal financial advisors also have the option of obtaining the Chartered Financial Consultant (ChFC) designation, issued by the American College in Bryn Mawr PA. This certification requires an eight-course study program and has continuing education requirements.

Some of the education you’ll need to become a financial planner will take place outside of the formal academic arena. Individuals who decide to start out as independent financial advisors with no professional experience often find it more difficult to find clients without firsthand business experience. While a new financial planner may find some friends and family eager to sign up for his or her services, this won’t be enough a client base to bring in a viable income.

It often becomes necessary to work in a related field for a time, to establish a reputation and form business connections and alliances. Many financial advisors began their careers as accountants, auditors, lawyers, insurance sales agents, and financial services sales agents. The knowledge and experience gained in related fields and through formal education will insure both confident and skilled financial planners.