Tuesday, September 29, 2015

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A financial planner is an individual who is a financial consultant  responsible for looking after the sales of financial products. Financial planners earn an income by helping people choose financial products. This also includes financial investments like insurance and other financial products. Apart from all this, they also do retirement planning, college funding, and estate planning and general investment analysis. You will find that more than half of the financial advisers work in banks, insurance companies or financial advisories. Invariably a license is not required for a financial planner, however, those who have a license sell stocks, bonds, mutual funds or insurance. These licenses are Series 6, 7 or 63. 

Where do Financial Advisors work?

More than half of the financial advisers work for finance and insurance companies including securities and commodity brokers, banks, insurance carriers and financial investment firms. However, it will also be seen that four out of 10 personal finance advisers will be self-employed and operating through small investment advisory firms, usually located in urban areas. As per the Bureau of Labor Statistics, the overall employment of certified financial analysts and personal finance advisers are slated to increase faster than the average by 27% or more for all occupations through 2014. 

This is a direct result of increased investment by businesses and individuals, with a rising number of self-directed retirement plans, which are usually located in urban areas. As per the recent Labor Statistics, the overall employment of financial analysts and personal finance advisors is expected to increase faster than the average by 27% or more for all the occupations through to 2014. 

Is a career in Financial Planning made for you?

It is always better for a financial planner to have a network. His network helps him develop his business Earning a substantial amount of compensation through commissions is possible only if he has the right connections and energy level to engage that network, Only your network will enable you to succeed in this tough career. 

  1. A Financial planner endeavors to obtain new business through referrals from satisfied clients who are an important source of new business. 
  2. These clients are responsible for helping the planner make his fortune. 
  3. A financial planner is responsible for identifying the personal and financial goals of their clients and the time of their investments or savings for planning their funds. 
  4. They evaluate the capacity and the financial strength of their clients for them to utilize their funds better. 
  5. They are responsible for studying the market potential, investment avenues, instruments of investments, the financial products available and they educate, suggest and advise their clients.
  6.  A career in financial planning is suitable for you only if you have the capacity to do all of the above. 

Future prospects of a Certified financial planner

At the outset let me make it clear that the career path of a financial advisor is not very easy. Initially, he starts his career with a wealth management firm, HNI, tax consultancy, insurance product distributors or pension funds, financial services firms, banks and financial institutions, etc. Later on after gaining adequate experience, he can be absorbed in middle level positions as a sales manager, wealth manager or relationship manager. On gaining more experience, he can further rise to the level of a functional head in a department managing investments. 

Even real estate trusts require a certified financial planner to manage their funds. Experienced financial planners can find satisfying careers in investment banking, financial consulting, financial analysis companies and insurance companies. Even knowledge processing firms require financial planners to work as data analysts, market researcher, client development analyst, derivatives analyst, equity research, research associate, etc. 

Thus, we have seen that the future of a certified financial analyst depends on his network, his business savvy and his selling skills.