Take introductory courses in retirement and estate planning, income tax, investment strategies, and risk management. Then take advanced courses in the areas that interest you the most. Your specific major typically doesn’t matter as much, but degrees in financing, accounting, economics, mathematics, or computer science can look good on a financial advisor’s resumé.
In some countries, such as Canada, a CFP is required if you want to work as a financial advisor in any capacity, although some other financial certifications or licenses are accepted as equivalent.
Your school typically will have information on available internships through the department office or career services office, along with other resources to help you secure a position. Some internships may be eligible for class credit towards your degree.
Graduate degrees or professional degrees also open up other opportunities for you. For example, if you get a law degree, you could provide clients with legal and financial advice. If you have a master’s degree or Ph. D. in finance, business, or economics, you may be able to skip any licensing and certification exams.
For example, you could get a job as a teller at a bank, or as an entry-level clerk at a brokerage firm. Insurance agencies also help prepare you for a career as a financial advisor, particularly if you want to work in the retirement planning sector. It’s okay if you don’t get your dream job right away! Just take advantage of whatever opportunities are around you, and focus on improving your knowledge and skills. [5] X Expert Source Derick VogelCredit Advisor & Owner, Credit Absolute Expert Interview. 26 March 2020.
These programs typically last a year or longer, and give you the skills and knowledge you need to pass certification exams and become a successful financial advisor. Larger, more established firms tend to have highly competitive training programs. To be accepted, you need top grades and impeccable references. In addition, look for other opportunities that can set you apart from other applicants, such as research projects or competitions.
Small independent investment firms also typically have access to a greater variety of investment products than some of the larger firms. This gives you broader experience, which will give you more flexibility in your career. Particularly with smaller companies, research the background and reputation of the company itself and the people who work there. You don’t want to get caught up in unethical or fraudulent activity, especially when you’re just starting out.
While training, focus on how to make the work process streamlined and more efficient. Learn the policies of the firm where you’re working, but think about how you can adapt those policies to work better.
Licenses and certifications can get expensive if you get more than one, and multiple licenses or certifications may not improve your value as a financial advisor. Choose what you want to do wisely. For example, if you most enjoy complex global transactions and international investment opportunities, you might want to get licensed as a Chartered Financial Analyst (CFA). If you plan to work for an insurance company, you typically must be licensed as an insurance agent.
This designation doesn’t allow you to actually buy and sell investment products – it is solely a professional credential. You may need additional licenses, depending on the type of work you want to do as an advisor. To get a CFP, you must have a four-year degree, three years of work experience, and take a two-day, 10-hour exam. You can take preparatory classes for the exam through a university, or take a self-study course on your own.
To be eligible for a CFA, you must have at least a bachelor’s degree and four years experience as a financial advisor. The CFA is offered by the CFA Institute, which offers a self-study program split into three phases, with a six-hour exam at the end of each phase. To get the charter, you must become a regular member of the CFA Institute. The CFA is a globally recognized career distinction that will help you stand out in the competitive financial advisor market. It also gives you a shot at a job with major investment firms, such as Merrill Lynch and JPMorgan Chase.
You don’t need an RIA if you’re simply being paid for general investment advice. But if you’re giving clients specific investment advice on buying or selling a specific commodity, you must be registered as an investment advisor. This designation may require other licenses or registrations depending on the laws in your country and the size of the portfolios you handle.
You typically must register with the securities commission if you buy and sell investments and commodities directly on behalf of your clients. Generally this requirement kicks in if you manage portfolios totaling over $100 million in investments. In addition to national commissions, you also may be required to register with state or local regulators.
Insurance licenses typically are the easiest of any license a financial advisor may need. All you have to do is pay a fee and take a two- or three-hour exam.
For example, even though an insurance license is one of the easiest licenses for a financial advisor to get, they typically require fairly extensive continuing education to maintain. Continuing education also keeps you up-to-date on various market and investment trends that could directly impact your clients and the success of their investments. Don’t think of continuing education as something you have to do to keep your license, but as something you want to do to be the best possible financial advisor.
