How To Be A Financial Planner?

A Financial Planner is a trained and licensed professional who is skilled to help organizations and individuals with setting and meeting long-term or short-term financial objectives. They analyze and discuss their clients’ current status and desired objectives, helping them to set reachable goals and implement plans to achieve them. A financial advisor can make recommendations on investments, tax laws, and insurance choices based on the financial requirements of the individual or company.

Though many financial advisors select to think in particular areas, such as superannuation, tax planning or debt management, their basic job is to help clients manage and invest their money wisely in order to achieve their preferred financial goals. A client’s goals might include saving for retirement or a house, generating greater income, minimizing tax burdens or reducing debts.

A Financial Planner also works as an awareness creator, helping their customers understand what is involved in reaching their future goals. They educate customers on anything from budgeting and saving to complex insurance, investment and tax issues.

Here are some of the milestones you will need to cross to get on “how to become a Financial Advisor”.

Step 1: Get a diploma or bachelor’s degree.

According to the Australian Securities and Investments Commission (ASIC) Regulatory Guide 146, there are some general and precise things you need to know to become a Financial Adviser. It is advised that you begin your education by basic college education, a diploma or an advanced diploma in a relevant field. Getting succeeded in financial planning, business or accounting with a specialization on financial planning will give you the essential skills to advance your career and gain more training in exact areas.

Step 2: Decide what type of planner you want to be.

Once you are finished with your basic education you should have a reasonable idea of what type of services you would like to provide as a Financial Advisor. Whether you choose to focus on superannuation, financial planning, insurance or any combination of these and maybe other services too, you are needed by ASIC to gain further training in order to be able to demonstrate that you have gained ‘expert knowledge’ as outlined in the regulatory guide 146, in the relevant areas you wish to pursue.

Step 3: Gain entry-level employment with a license.

After completing your education you can begin to apply for entry-level positions with practising Financial Advisors or companies that hold a Limited Australian Financial Services License (Limited AFS License) from ASIC. Because this is a very knowledge-based career, be prepared to start at the ground level and work your level up. Most Financial Planners start out as administrators then they become Financial Advisor.

Step 4: Get your certification.

The final step is to gain certification with a recognized organization such as the Financial Planning Association of Australia (FPA). The recommended and most widely recognized qualification is a Certified Financial Planner - CFP®. This certification is not important to a career as a Financial Adviser but it is recommended because it demonstrates to clients that you are competent and committed to a high level of professional development and ethical standards. Employers also tend to look positively on candidates that are certified, so this qualification will pick up your employment prospects and increase your earning prospective.

What does a Financial Advisor do?

A Financial Planner is an investment specialist who is trained to assess the financial standing of their customers, help them to outline their aims and develop and implement strategies to accomplish them. They do learn and offer recommendations on potential investments, superannuation, insurance, tax planning, and various other financial choices in order to help their customers invest and manage their money more professionally.

Financial Planners help customers identify long- and short-term objectives such as saving for a home or retirement, reducing debt, minimizing their tax burden generating income or just improving their budgeting skills. A Financial Advisor will then help to devise a step-by-step plan that the customer can follow to accomplish their preferred financial outcome.

Tasks

• Researching investment opportunities and finance products.
• Maintaining up-to-date knowledge of government regulations and financial matters.
• Assessing and analyzing customers’ financial position.
• Helping customers to identify and outline long-term and short-term goals.
• Offering guidance and information on many different finance and investment topics.
• Developing plans and strategies for customers to accomplish desired outcomes.