If you have ever thought of becoming a financial planner or if you're only planning on seeing one, this article is for you.
It is very stressful, time-consuming and sometimes, it can be very touchy because some people are not comfortable to talk about their personal expenses or financial situation. In the other hand, when you are able to help your client clearing his debts and build a better situation for him and his family, it is very rewarding.
Financial planners analyse the financial situation of their clients by dressing a picture of their objectives, current income, investment, risk tolerance, expenses, tax returns, insurance coverage, retirement programs, estate plan and the other pertinent information. This information will allow the financial planner to suggest the steps the client need to do to meet their goals.
A financial planner will take information about their clients and creating If you have ever thought of becoming a policeman plans that will suit their needs. Most of their time will be on advising clients about in the planning they made for them such as investment planning, retirement planning, tax planning, estate planning and risk management.
At the beginning of their career, financial planners will be working in banks, mutual fund companies or investment firm. Eventually, an experienced financial planner can also create is own private company.
In order to become a financial planner, you need to be certified by the CFP(Certified Financial Planners). To be certified, you need three years of financial planning-related experience, and completion of college-level courses in financial planning. Here in Quebec, you also have to pass an exam at the IQPF and meet the AMF standards which means other exams.
There is a big gap between the entry salary and the top salaries since there is a lot of room for personal improvement. You're starting income can be $20 000, but your salary can push the $200 000 level.
Every 2 years, they have to do exams to meet AMF's standards. Also, they have to keep their information up-to-date by doing research about the all the financial products available and take notes of every change. A good financial planner will also ask question to his college to have a better understanding of every product and will accept every training that his boss proposes to him.
You are dealing with someone else's money and if the investment or product you proposed to your clients make them lose money or if your advice leads to a loss of capital, your client will lose his trust for you and won't come back, which pretty much means that you are fired.
There are already robots and software that are able to analyse someone's financial situations and help to make a plan but those robots and software are very hard to understand, so the financial planner is the one using them and interpret the information given.
Sometimes, financial planners retire because they can't handle the stress anymore, but if their clients respect him, the financial planner can work as long as he wants, so we can see financial planners retire at 60-65 years old.
In conclusion, if you want to become a financial planner, you will have to meet the standards of the profession and be prepare to experience a lot of stress and that you will constantly be questioned and challenge about your knowledge, but in the end, it is worth it.
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Date: still relevant
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Rationale: to inform or educate
Authority: peer-reviewed wiki
Date: still relevant
Accuracy: probably true
Relevance: relevant for this document
Sources: no sources cited