Personal financial advisers recommends financial options to individual clients using their knowledge of insurance, tax laws and investments. Becoming a personal financial adviser means identifying clients’ financial goals and finding ways to help them achieve these goals, whether through savvy investments, business decisions or tax advice.
According to the Bureau of Labor Statistics, nearly one-third of all personal financial advisers are self-employed. For individuals with an entrepreneurial mindset, doing business as a sole proprietor can provide immense opportunities for success. Before you start brainstorming business names, however, read on to see what it takes to become a personal financial adviser.
It is strongly preferred for a personal financial adviser to possess — at minimum — a bachelor’s degree. Since clients entrust their financial well being with them, credentials are a key way to inspire trust, especially at the beginning of the professional relationship.
In addition to a bachelor’s or graduate degree, financial advisers can benefit greatly from completing advanced coursework in estate planning, risk management, investments and taxes. The Series 7 and Series 63 or 66 licenses are also required, which confer the power to provide financial advice.
Much of a personal financial adviser’s job involves networking and searching for clients to add to their database. This makes the ability to multitask and remain organized essential. Personal financial advisers typically meet with clients in person to identify their short- and long-term financial goals. They create thorough financial plans for meeting these goals, helping their clients build wealth.
Financial advisers often recommend and sell products to their clients alongside their financial plan. These can include securities, insurance and other investments that yield commissions for a personal financial adviser. Since a typical workday involves meeting with clients, a personal financial adviser may have to work weekends or odd hours.
According to the Bureau of Labor Statistics, personal financial advisers earned an average of $66,120 in May of 2006. The highest 10 percent earned $145,600 and above, while the lowest 10 percent earned less than $32,340.