Everything you Need to Know: How to Become a Financial Advisor

“An Investment in knowledge pays the best interest”

        –Benjamin Franklin

If you are one who loves to advise about managing finance and prefers to play with numbers then, we got career advice for you. But before that, we got a disclaimer which says, “ This career needs efforts, time, presence of mind and full dedication in the field, if you are ready for it, then keep reading”. The role of a financial advisor is very critical in deciding, where to how much to put and where to put. It’s a career where every day is filled with new excitement and challenges to solve the financial issues and proposing the best advice to the client. Along with that, this job is on position 9 in the top U.S career chart with the lucrative package. As per the Bureau of Labor Statistics, the demand between 2016 and 2026 will rise up to 14.9%. Here are some facts to know about financial planning for a couple.

Of course, there is a lot more and far depth career. Let’s live more on how to become a financial advisor and everything related to it. Not to forget correct education, certification, and license to dole out financial advice professionally. So without wasting time, let’s get into detail. 

Also Read: Why Do You Need A Financial Advisor?

Role of a Financial Advisor

Financial Advisor is a large branch, but talking about in general terms, the advisor is someone who advises clients for financial issues and management. What is a financial advisor? The role of advisors to provide insight on how to save and build future wealth. The purpose is not limited to advising only as one should be capable of sell ideas with the right set of financial and investment know-how. The foremost job requirement is an excellent marketing and networking skills. The job require never stop learning passion as with time laws, and plans are subject to change. 

How to Become a Financial Advisor

Source: mediqfinancial.com.au

Types of Advisors:

There are different types of financial advisors. Each type is specialized in various aspects of finance. Below are its types:

  • Education
  • Financial Planning
  • Insurance
  • Retirement
  • Real Estate
  • Stocks
  • Taxes
Degree of a Financial Advisor

The requirement of a university degree is not mandatory. But to set the feet in this career, go for a bachelor’s degree in accounting, business, economics, finance or mathematics. However, one needs to qualify an exam conducted by the Financial Industry Regulatory Authority, or FINRA. The majority of the advisor prefer a bachelor’s degree at a minimum, while others go for the MBA route to advance the career path. Even a few folks choose advisor path after availing a degree in law. A master’s degree offers fair chances to attract the client if you want to go for a self-employment option. 

Continuing education is not mandatory criteria here; in fact, it a great way to expand the financial advising horizon or stay updated with the new laws and policies. But one should always focus on sharpening the networking and marketing skills to stay ahead of everyone and to fulfill the dream of being your own boss. 

License Requirement

License is not compulsory in all type of financial advising services, until and unless a specialty requires it. 

In the case of stock trading advice, it is a mandatory requirement. Even for giving advice related to investment, it is neccessary. Insurance companies ask for the license at the time of hiring as their client needs expert advice on buying and selling od insurance and license give an accreditation about their expertise. When it comes to financing things, people don’t want to risk their hard-earned money on the advice of unlicensed people, even if they are capable of giving the best advice. 

How to Become a Financial Advisor

Source: businessinsider.com

FINRA Licenses: Series 6 & Series 7

Exam Series 6 is also known as Investment Company, and Variable Contracts Products Representative Qualification Examination, the qualifier of the exam confirms that a candidate possesses the knowledge to handle essential functioning in the investment companies like one who deals in mutual funds and annuities. To obtain this license, a candidate has to pass the Securities Industry Essentials Exam along with the Series 6 exam to get the registration. 

The candidate who qualifies the above-stated exam is qualified to purchase/sell the following type of securities products:

  • Municipal fund securities 
  • Mutual funds (closed-end funds on the initial offering only)
  • Variable annuities
  • Unit investment trusts 
  • Variable life insurance

Examination details:

The Series 6 exam consists of 50 multiple choice questions with four options and the time limitation of 1 hour and 30 minutes. Even if you fail to qualify the exam, then become eligible to re-take the exam after 30 days. 

Exam Series 7

Also known as General Securities Representative Qualification Examination, the qualifier of the examination possess the knowledge to handle the critical job in 

  • Corporate securities 
  • Direct participation programs
  • Investment company securities
  • Municipal securities
  • Options
  • Variable annuities

Examination details:

The Series 7 exam consists of 125 multiple choice questions with four options and the time limitation of 3 hours and 45 minutes. Even if you fail to qualify the exam, then become eligible to re-take the exam after 30 days. 

An applicant who wants to take series 7 needs to be supported by a FINRA member firm. It is the governing body to ensure securities firms and registered brokers are qualified and tested for the profession. FINRA has different eligibility requirements. 

How to Become a Financial Advisor

Source: thestreet.com

Financial Advisor Salary

According to the Bureau of Labor Statistics, the average salary of a financial advisor in 2018 was $88,890. States like New York, Wyoming offer a salary of up to $200,000. The financial advisor salary majorly depends on the skills and experience of an advisor. 

Final Words

It will always be suggested to go for a certification course to get detailed knowledge about the field. We hope with this post “how to become a financial advisor” is pretty much clear. Based on your interest, choose your specialization to carefully. For all finance related queries, keep coming to FinanceShed.