If you have ever thought about becoming a financial planner, then this article is for you. You will learn everything you ever wanted to know about becoming a financial planner, where financial planners work, how much they get paid, what kind of additional in-service training they need, how you can become a financial planner, some of the dangers involved in the job, when you can expect to retire and how you can make a difference in the lives of the people you serve.
It is a research-heavy profession, as well as a stressful one: You are suggesting how to use other people's money, which can make those people touchy.
Financial planners determine how their clients can meet lifelong financial goals through management of resources. They examine the financial history-past and current-of their client's assets and suggest exactly what steps the client needs to take in the future to meet her goals. Although other professional financial advisors usually focus on one area of a client's financial life, the broad-based approach to financial advice that financial planners offer distinguishes them from the rest of the profession.
A financial planner will conduct questionnaires and personal interviews to put together a client profile detailing financial objectives, current income, investments, risk tolerance, expenses, tax returns, insurance coverage, retirement programs, estate plans, and other pertinent information to put together a plan that meets the client's overall, or specific, financial agenda. The plan itself is a set of recommendations and strategies for the client to use, or to ignore, and financial planners should be ready to answer hard questions about the integrity of the plan they map out.
Early in their careers, financial planners will be working for banks, mutual fund companies, or investment firms and will receive extensive on-the-job training.
Financial planners must have completed a university-level training program in personal financial planning approved by the IQPF (or have an equivalent combination of university education, professional titles and professional experience) and the IQPF (Institut Québécois de Planification Financière) Professional Training Course. They also must have passed the IQPF exam.
Pressure is high and pay is relatively low for the newly anointed, with starting incomes around $20,000. Financial planners are paid on a fee-only, commission, or fee-and-commission basis. Early on, fees and commissions are apt to be low. Top salaries push the $200 000 level.
Financial Planners must have the appropriate certificate issued by the Autorité des marchés financiers or be authorized to wear the title by a professional order who has an agreement with the Autorité des marchés financiers (the Ordre des comptables professionnels agréés du Québec (CPA) and the professional order of chartered administrators).
A financial planner must also have good interpersonal skills since establishing a client-planner relationship is essential to a planner's professional success. It also helps the planner to be a great presenter since even the best financial plan, if presented poorly to a client, can destroy the client's trust.
It is unlikely that Financial Planners will be replaced by robots because the job requires a lot of communication. However, some websites are already offering financial planning services with low fees but the plan might not be best suited for the client.
A financial planner can retire at the age of 65. However, some retire sooner because they made a great amount of money and some never retire because the job requires less time and effort as time goes on.
Being a financial planner can be a difficult job but as the years go by the job can get easier. The job also lets you develop great client-planner relationship which can lead to friendships. It requires a university degree and integrity.
Rationale: to inform or educate
Authority: recognized author
Date: recently published
Accuracy: probably true
Relevance: relevant for this document
Sources: no sources cited
Rationale: to inform or educate
Authority: government
Date: recently published
Accuracy: probably true
Relevance: relevant for this document
Sources: no sources cited