How to Be a Financial Planner

Co-authored by Keila Hill-Trawick, CPA

Last Updated: September 13, 2021 References

A financial planner helps individuals and businesses meet their financial goals. It’s a great career if you are passionate about helping people and enjoy the ins and outs of finance. To become a financial planner, get proper training and education, then seek out relevant work experience. Depending on your situation, you may want to become certified.

Part 1

Part 1 of 3:
Getting Proper Training

1
Earn an appropriate undergraduate degree. You don’t need an undergraduate degree in financial planning. However, you should study in a field related to business or finance.^{[1]
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Expert Source

Katherine Kirkinis, Ed.M., MA
Career Coach & Psychotherapist
Expert Interview. 14 October 2020.} Many financial planners earn degrees in the following fields:^{[2]
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- Accounting
- Business
- Computer science
- Finance
- Marketing
- Math
2
Practice public speaking. Financial planners need experience communicating ideas orally. The best practice is to give speeches to small and large groups while in college.^{[3]
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Research source} You can give speeches on any topic you want. The key is to become comfortable talking to strangers.
- Always practice answering questions as well. It takes practice to learn how to think on your feet.
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3
Strengthen your writing skills. Financial planners also need to communicate well in writing. While in college, take writing-intensive courses and volunteer for the campus newspaper. Learn how to write with brevity and clarity.^{[4]
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4
Improve your listening skills. A successful financial planner must be able to listen to what clients want.^{[5]
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Research source} In college, you can improve your listening skills by working for a crisis hotline. You’ll learn how to listen to people who need help and sharpen your ability to ask penetrating questions.
5
Work in a small business. Small business experience is helpful if you eventually want to start your own firm. It doesn’t matter what business you work in. However, give it your all and try to work as closely as possible with the boss. You’ll absorb their methods of running a business, which will serve you well in the future.^{[6]
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- In college, you can work during the summer or part-time during the year. Pick something you enjoy—it doesn’t have to be finance related.
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Part 2

Part 2 of 3:
Gaining Work Experience

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Find an internship while in school. You’ll need real, hands on experience to make you an attractive candidate for jobs, and you can get this experience in an internship. Look for opportunities at fee-only financial planning firms. Compile a list of fee-only firms in your area and contact each firm on the list. Send a cover letter and a copy of your resume.
- Other financial planning firms sell products, such as securities or mutual funds. There’s nothing wrong with that kind of work. However, most internships at these firms are really glorified sales jobs. You’ll be on the phone all day trying to sell products to consumers while learning little about financial planning.
- If you’re having trouble finding fee-only firms, check the NAPFA and Financial Planning Association websites.
2
Consider starting as a tax preparer. Investment planners need to be up-to-date on tax law, so getting a few years under your belt as a tax preparer can be a big advantage. Stop into H&R Block or another company and take their tax preparer exam.^{[7]
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- While working, focus on building relationships. You won’t be able to sell financial planning services while you work as a tax preparer. However, after you leave, you can rekindle those relationships and offer your clients financial planning services.
3
Join the Financial Planning Association (FPA). You might have to network to find your first financial planning job. Meet current practitioners by joining your local FPA and attending events. Introduce yourself and always emphasize that you are looking for work.^{[8]
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Research source} The FPA also has a job board you can access.
4
Search for an entry-level job. If you worked an internship, reach out and check whether the firm is hiring anyone after you graduate college. If not, you should check the job boards at your college or university. You can also send your resume to any investment company and ask if they are hiring.
- Some firms have elaborate training programs that can last up to a year. During that time, you’ll work and at the same time train for your certifications.
- Smaller firms might throw you into the pool and expect you to swim. However, you’ll get hands-on experience planning for clients, which is invaluable.
5
Start your own business. At some point, many financial planners start their own firms. Starting your own financial planning firm is a lot of work, but you have more control over your business. When you start out on your own, try to partner with an attorney or a certified public accountant who can mentor you.^{[9]
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- Also research the costs of errors and omissions insurance, which protects you against malpractice suits. Your current employer is probably paying for it, but you’ll be responsible for paying the premiums when you become your own boss.
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Part 3

Part 3 of 3:
Becoming Certified

1
Identify the certifications available. Financial planners might hold a variety of certifications. Some are required, depending on the work you do, and others are optional.^{[10]
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Expert Source

Keila Hill-Trawick, CPA
Certified Public Accountant
Expert Interview. 30 July 2020.} Common certifications in the U.S. include the following:
- Certified Financial Planner (CFP). This credential is not required to work as a financial planner. However, it will improve your credibility with the public and help you move up the career ladder.
- Series 66 license. Some financial planners sell mutual funds and other securities as part of their financial planning. If so, you need this license.^{[11]
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- Registered Investment Adviser (RIA). An RIA is someone who is paid for giving advice about which securities to invest in. You do not need to register as an RIA if you give general financial planning advice.
2
Obtain the necessary work experience to become a CFP. You’ll need at least three to five years of full-time financial planning experience to qualify for the CFP.^{[12]
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Research source} If you take the exam before you have enough work experience, you’ll need to wait before you can hold yourself out as a CFP.^{[13]
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Expert Source

Keila Hill-Trawick, CPA
Certified Public Accountant
Expert Interview. 30 July 2020.}
3
Complete a CFP program. Almost 300 colleges and universities offer programs in financial planning. These programs all cover the same material but differ considerably in duration and delivery method. For example, some programs consist of online courses while others are full university degrees. Find programs on the CFP Board website: http://www.cfp.net/become-a-cfp-professional/find-an-education-program.
4
Pass the CFP exam. The CFP exam is seven hours long and consists of 170 multiple-choice questions. It covers investment, insurance, tax, retirement, and estate planning. The exam is offered three times a year and only about 50% of exam takers pass.^{[14]
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- Because the exam is so hard, you should prepare as best as you can. You might benefit by signing up for a review course that will help you digest all of the material.^{[15]
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  Expert Source
  
  Keila Hill-Trawick, CPA
  Certified Public Accountant
  Expert Interview. 30 July 2020.}
5
Obtain continuing education for your CFP. Every two years, you must get 30 hours of continuing education in order to maintain your CFP credential. Your training must be in the following areas:^{[16]
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- Investment management
- Insurance
- Employee benefits
- Tax planning
- Retirement planning
- Estate planning
6
Earn a Series 66 license. In the U.S., this license will qualify you as an investment advisor representative. You must pass the Series 66 exam and the FINRA Series 7 exam, in either order. The Series 66 exam is a 100 question multiple-choice exam that covers financial reporting, risk, client investment strategies, and securities regulation.^{[17]
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- The FINRA Series 7 exam tests whether you have the knowledge necessary to work as a general securities representative. It covers topic such as the sales of corporate securities, variable annuities, municipal securities, and government securities. The exam has 250 scored questions.^{[18]
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  Trustworthy Source
  Financial Industry Regulatory Agency
  Non-governmental organization responsible for regulating brokerage firms and exchange markets
  Go to source}
7
Become a Registered Investment Advisor. You’ll need to pass the Series 65 exams, which covers federal securities law in the U.S. It has 140 multiple choice questions and takes three hours. You must then register with the applicable securities commission. If you manage more than $100 million in assets, you will register with the Securities and Exchange Commission (SEC). If you manage less, you register with your state’s securities regulator.^{[19]
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- If you act as an investment advisor to any investment company, you must register with the SEC regardless of how much you manage in assets.
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Community Q&A

Question

How long does it take to become a financial planner?

Keila Hill-Trawick, CPA
Certified Public Accountant
Keila Hill-Trawick is a Certified Public Accountant (CPA) and owner at Little Fish Accounting, a CPA firm for small businesses in Washington, District of Columbia. With over 15 years of experience in accounting, Keila specializes in advising freelancers, solopreneurs, and small businesses in reaching their financial goals through tax preparation, financial accounting, bookkeeping, small business tax, financial advisory, and personal tax planning services. Keila spent over a decade in the government and private sector before founding Little Fish Accounting. She holds a BS in Accounting from Georgia State University - J. Mack Robinson College of Business and an MBA from Mercer University - Stetson School of Business and Economics.

Keila Hill-Trawick, CPA

Certified Public Accountant

Expert Answer

It depends on what certifications you want to pursue and what you want to specialize in. It also depends on where you live in some cases. It could take a few months if you already meet some of the requirements, but it might take years if you don't have any college courses in finance under your belt!
Question

Is financial planning a good career?

Keila Hill-Trawick, CPA
Certified Public Accountant
Keila Hill-Trawick is a Certified Public Accountant (CPA) and owner at Little Fish Accounting, a CPA firm for small businesses in Washington, District of Columbia. With over 15 years of experience in accounting, Keila specializes in advising freelancers, solopreneurs, and small businesses in reaching their financial goals through tax preparation, financial accounting, bookkeeping, small business tax, financial advisory, and personal tax planning services. Keila spent over a decade in the government and private sector before founding Little Fish Accounting. She holds a BS in Accounting from Georgia State University - J. Mack Robinson College of Business and an MBA from Mercer University - Stetson School of Business and Economics.

Keila Hill-Trawick, CPA

Certified Public Accountant

Expert Answer

It depends on whether you're interested in it or not! If you have an analytical mind and you enjoy working with numbers, it's probably going to be very rewarding. There's a lot you can do in this field as well; you aren't stuck exclusively doing financial planning for individuals. Companies and even government institutions all utilize employees with this kind of experience.
Question

What kind of experience do I need to become a financial planner?

Katherine Kirkinis, Ed.M., MA
Career Coach & Psychotherapist
Katherine Kirkinis is a Career Coach and Psychotherapist who has served as a career expert for Forbes, Medium, Best Life, and Working Mother Magazine, and as a diversity and inclusion expert for ATTN and Quartz. She specializes in working with issues of career, identity, and indecision. She has doctoral-level training in career counseling and career assessment and has worked with hundreds of clients to make career decisions through career assessments. She is pursuing a doctoral degree at The University of Albany, SUNY where her work focuses on diversity and inclusion, racism in the workplace, and racial identity. She is a published author and has been featured in academic journals as well as popular media outlets. Her research has been presented at 10+ national APA conferences since 2013.

Katherine Kirkinis, Ed.M., MA

Career Coach & Psychotherapist

Expert Answer

Most financial planners start with earning a bachelor-level degree. Often in finance, business, economics, or a related area, but it’s not necessary to have majored in a related area. What’s most important is that you have a strong understanding of major exchanges (e.g., New York Stock Exchange or the NASDAQ), financial laws and regulations, and financial forecasting--all of which can be learned online, through books, etc. Most large firms have financial advising development rotational training programs (e.g., UBS, JP Morgan, etc.) that take applicants. From there, most financial planners start as financial advisor (FA) assistants and then move up. It’s not a requirement to do a financial advising development rotational training program, but it is helpful. Every country has different credentialing requirements, but in the U.S., financial advisors are also registered brokers who must pass the FINRA Series 7 and Series 63 or 66 tests to obtain licenses.