Financial advisors play a vital role in the financial industry, and it’s no surprise that these professionals are trusted with billions of dollars every year. They help everyday individuals plan for retirement, prepare taxes, and manage their money to ensure they don’t spend more than they make (and ideally save). Financial advisors do all this by helping clients create comprehensive plans that cover everything from budgeting to diversifying investments. If you’re considering entering this field, you’ll need to be prepared – not only must you know about finances and investing, but you should also be ready to work long hours and think on your feet.
A financial advisor needs to understand all aspects of money management.
Financial advisors typically receive a bachelor’s degree and reach this position through in-depth study in finance and business. Applicants should be proficient in essential calculus and statistics, as well as have strong knowledge about the following:
• Marketing trends
• Investment planning
Advisors typically train on the job with an experienced professional for three years or more before serving clients independently. Once they do, they may require state licensing or certification to work with individuals. It is important to note that becoming a fee-based advisor is possible, but most beginners first establish themselves under the commission model. Commission-based advisors charge fees based on their services (e.g., they receive a percentage of the money they help clients invest).