So You Want To Be A Financial Advisor

Financial advising can be a very rewarding and flexible career. The job is always changing with technology and regulations, but the need for holistic advice in the future should only continue to increase.

While the paths of successful advisors vary greatly, below are my thoughts for anyone currently in college or enrolling in college about what I advise and what I would have done differently.

Undergrad

My best piece of advice would be to major in a traditional field that opens as many doors as possible.

 

As someone that majored in personal financial planning – before there were more than a few financial planning undergraduate programs – if I had to do everything again I would have studied accounting.

Clients look at advisors as a part of their accounting team – especially if you choose to prepare tax returns – and the background will go a long way in working with your client’s accountant.

Accounting would be my first choice, finance second perhaps only due to my personal experience being more in the accounting world. I’ve seen far more move from an accounting job to a financial planning career than from finance.

Fund managers and CFAs who make the shift will admit that their education isn’t necessarily as valued by clients, and so I would start with accounting.

General business degrees or other degrees are not likely to add value to an employer, and most will have too much information that isn’t relevant or that can be easily learned later.

For example, the items you would have to know in finance may be learned in a CFP® exam certificate program or if you pursued a CFA designation.

Any future employer or client is going to see value in an employee who loves numbers since this is work that both want to make sure is right and neither wants to do themselves.

As someone that tried to find work in the early 2000’s and as well in 2008-2009 with a financial planning degree, I found in a downturn there will be an excess supply of financial planners. Meanwhile, there will always be accounting jobs.

An accounting degree also minimizes an employers concern over your school and program. Accounting is accounting is accounting. As a potential employer, I’m not concerned about who your accounting professors were as I might be if you have a less traditional degree.

And, finally, if you discover you don’t love planning, there is no shortage of work in accounting.

Try to include a personal finance course as an elective, but the best time to take the required CFP® exam courses will come later.

Intern and work in accounting firms or firms in a specific area of finance – mortgage lending, banking, or investment firms are good options. Having experience in one of these areas rather than in a financial planning firm will give you an insight into the motivations and operations of firms that you will benefit you later in your career. Think twice before “interning” at any firm that wants you to sell your contacts a product or service.

After graduation is the best time to take the required courses to sit for the CFP® exam for a few reasons.

The first is that you may be working in the field and can apply what you are learning directly to client cases. Your employer may also help to cover the cost, which a certificate program is typically much less than if you had double majored or pursued a master’s degree.

If you can find a local program that has instructors that work in the field, you are going to benefit in a few ways over a university program. The first is that you will be learning and discuss topics that are impacting a full-time advisor.

The next is your classmates will include many working in the field.

The professional connections can be invaluable and may lead to a first or second job. Many in my undergrad program that I stayed in contact with ended up working in other fields, but the personal finance certificate courses that I took after graduation provided much deeper connections and content than you will get in a traditional classroom.

I began a CFP® exam certificate program as I was finishing my undergrad degree, and have always felt that small act of showing an interest in continuing to learn helped land several interviews and jobs.

Should you pursue a master’s degree?

As someone who obtained a Master of Economics degree, I question the value and worth of any program that a planner might consider. If you choose an advanced degree, make sure it serves a purpose.

For myself, I enjoy the philosophy and history of economic thought and was lucky to fall into a program that focused more on these topics than the typical econometrics. Back then I knew that I wanted to teach as a secondary career.

While teaching has paid off for me, depending on your field there may be ‘degree creep’ in teaching roles requiring doctorates. Without that part I would have a hard time justifying the cost, especially with all of the free resources and classes available online today at places like The Mises Institute and many other places.

A masters degree in a financial planning field certainly may be worthwhile for the knowledge, but it isn’t going to be the thing that impresses prospective clients enough to sign with your firm. A better option may be found with certificate programs which often are offered from the same schools at a significantly lower cost. The American College of Financial Services is just one option for continuing your education in personal finance that offers certificates, certifications, and degree programs.

Financial advising can be a rewarding profession, but it is becoming more important to have skills that add to existing practices as competition and regulations have increased costs on employers. Like I make sure to explain to my students, in whatever you pursue, always consider how you can best serve your future employer or clients and the right career path will present itself.

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