Personal Financial Advisor Careers Information
Are you good with money? Are you a people person? As the name implies, personal financial advisors use their knowledge of finance to advise people on how to make the most of their money. By looking at a client’s total financial picture including assets, debt, income, and investments, in conjunction with their future plans and retirement goals, a personal financial advisor will establish a financial plan of action. This may include saving more for retirement, shifting money to new investments, and/or purchasing various forms of insurance.
Personal Financial Advisor Careers & Degrees
- Colorado Technical University - Undergraduate: Undergraduate - Online
Jones International University: Online
American Intercontinental University: Online
A personal financial advisor may even be contacted when a client is considering a career change, for input on how such a move may help or hurt the financial plan. Typically, a client will meet with his or her personal financial advisor once or twice a year, at which time(s) the plan will re-evaluated and changed according to need.
A personal financial advisor may work for a large firm, with a group of other advisors, or be self-employed. For those who work in a firm or with others, some advisors will move up into management positions where they oversee the work of many advisors.
Private bankers or wealth managers are a special type of personal financial advisor. Because their clients have a large amount of money and often live solely off the residuals from their investments, such advisors must modify their strategies so that enough money is earned to sustain their client’s lifestyle in the present, not merely the future.
Personal Financial Advisor Careers Path
Unlike their financial analyst counterparts at large firms, personal financial advisors do not require any particular degree. However, a Bachelor’s degree in finance, economics, or business is strongly recommended to help secure clients. Strong knowledge of tax and estate laws, investment strategies, and risk management is also beneficial.
Furthermore, because many states require them, personal financial advisors need to make sure they have the proper licenses and professional affiliations. Certifications can enhance one’s professional status and is typically strongly recommended. Certifications such as the Chartered Financial Analyst (CFA), or Certified Financial Planner (CFP) are two such designations.
Personal Financial Advisor Careers: Compatible Personality Traits
Excellent mathematic and computer skills, detail oriented, personable, good with data, good communicator, able to work under pressure, willing to work flexible hours.
Personal Financial Advisor Careers: Salary Expectations
The average salary for a personal financial advisor is $66,120 a year, with the middle fifty percent earning between $44,130 and $114,260. On top of their salary, personal financial advisors employed at a firm often earn bonuses, commissions for the financial products such as insurance that they sell, and a percentage of the return on the investments.
Those who are self-employed make most of their money through the sale of financial products and a percentage of return on investments.
Personal Financial Advisor Careers: Job Outlook
Positions for personal financial advisors are expected to grow faster than the average for all occupations in the coming years due the retirement of the baby boomer generation and their desire for financial advice. However, due to many people coming into the industry, competition can be stiff and many self-employed advisors go out of business within the first year.
Those who have experience with financial firms as well as a college degree will garner the most trust and are the most likely to succeed beyond this period.
Slightly off the Footpath
Source: bls.gov/oco/ocos259.htm
