How to Become a Financial Advisor

Financial advisors are professionals who help us manage our money through investments. Financial advisors are consultants; they are the go-to people when we have questions about where to invest our money, how to plan for retirement or how to finance a college education for our children. Read on for more information on how to become a financial advisor.

For those who wish to make financial investments but aren't sure how, they may want to consider hiring a financial advisor. Financial advisors are consultants who offer advice and guidance on what financial investments to make, as well as what stocks, mutual funds or insurance to delve into. They also help with retirement and estate planning. In short, a financial advisor looks at your overall financial goals and strives to help you meet them through careful planning and investing.

Job demand for financial advisors is on the rise. According to the U.S. Bureau of Labor Statistics, the job outlook for financial advisors is favorable—employment is expected to increase by 37% through 2016.

Step 1: Education

  • Financial advisors are not required to have a bachelor's degree, though it is recommended. Potential college majors include:
  1. Finance
  2. Business administration
  3. Accounting
  4. Statistics
  5. Economics
  • Many financial advisors also attend graduate school and obtain a master's degree in business administration or finance.

Step 2: Licensing

  • If you wish to sell securities, mutual funds or insurance, you will be required to have a license. Exams for such licenses are administered by the Financial Industry Regulatory Authority (FINRA). Depending on their area of expertise, a financial advisor will likely be required to take the:
  1. Series 7 exam: General Securities Representative
  2. Series 63 exam: Uniform Securities Agent State Law Examination
  3. Series 66 exam: Uniform Combined State Law Examination

Step 3: Finding a Job

  • Once you have completed the necessary education and licensing requirements, you are ready to find a job.
  1. Decide where you want to work. Many financial advisors work for insurance or finance companies; others are self-employed, operating small businesses as independent financial advisors.
  2. Prepare a resume. List any special qualifications or experience you may have. Check out Mahalo's how to write a resume page for great tips on how to make your resume first-rate.
  3. Submit resumes to various finance or insurance companies.
  • If you plan to strike out on your own, you must register with the state securities agency where you operate your business. In addition, if you manage $25 million or more in client assets you must register with the Securities and Exchange Commission (SEC).

Conclusion

  • A reputable financial advisor will help you make both long and short-term investments. By investing your money carefully, they can chart the course for your financial future. Becoming a financial advisor takes a wealth of knowledge about business and finance. Once you have obtained the necessary education and licensing, you are ready to embark on a promising career as a financial advisor. Good luck!


Disclaimer

The content in this page is not a substitute for professional financial advice. Please contact your financial advisor before using the information presented here.

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