You’re ready, you’re willing, and you want to become a financial advisor.
At its core, a financial advisor is someone who provides advice on how people can manage their finances.. A good financial advisor will be able to help clients plan for the future and make informed decisions about their money today.
And it is undeniable:
There are so many reasons to like the financial services industry. And those who can design, execute, and manage investment strategies will reap great rewards in this market.
I mean, the possibilities are positively mind-boggling.
But first, let me make it clear:
The truth is that becoming a financial advisor isn’t easy. It takes years of hard work, dedication, and education.
However, if you’re willing to put in the effort and have the right mindset, there’s no limit to what you can do in this field.
To reiterate, the top producers you see today building covet-worthy empires for themselves started just like you – with nothing but a dream. And a desire to learn everything they could about their craft.
So, if you’re looking for a step-by-step guide on how to become a financial advisor, then this article will show you exactly how!
Let’s dive right into it:
Table of Contents
- Steps To Become a Financial Advisor – Step-By-Step Guide For 2022
- Others include:
Steps To Become a Financial Advisor – Step-By-Step Guide For 2022
Get An Education
First of all, earn a degree. While there aren’t any specific degrees required for becoming a financial advisor, it would benefit you if you take related courses in accounting, business administration, or finance so that you can understand how money works at its most basic level. More so, some employers are adamant applicants possess these kinds of degrees.
Beyond the preconceived notion, getting an education is not just about earning your degree. It is also about gaining real-world experience and getting hands-on training. Many schools offer internship programs where students can work with advisors in real-life situations and get experience working with clients. This type of hands-on experience can set you apart from other candidates who have not had this kind of experience before they start working as an advisor.
Get The Right Certifications And Licenses
Certification: This is an industry-recognized certificate that shows your knowledge and expertise on a specific topic. For example, the CFP® certification shows that you have completed the required education, training, and experience to offer clients financial planning services.
License: Financial advisors need to have a license to legally provide advice for compensation. It’s not hard. You just need to pass the FINRA Series 7 Exam which is the General Securities Representative Qualification Examination (GS), state insurance license exams, and additional exams for the specific products and services you want to sell. That’s it!
● Securities Industry Essentials (SIE) exam
● Series 6: Investment Company and Variable Contracts Products Representative Qualification Examination (IR)
● Series 63: Uniform Securities State Law Examination
● Series 65: Uniform Investment Advisor Law Examination
● Series 66: Uniform Combined State Law Examination
These tests are administered by the Financial Industry Regulatory Authority (FINRA), which is the largest independent regulator for all securities firms doing business in the United States. The licensing tests are multiple-choice questions and the duration is between 75-minutes to three hours. You can always find details regarding exams on FINRA official website.
Find A Job
With your degree in the bag and some level of hands-on internship experience, you should start looking for a job.
Here is the thing:
This is a crucial step to becoming a financial advisor. To get your license, you’ll need a sponsoring firm and their support in helping you through the process.
According to the Bureau of Labor Statistics (BLS), “personal financial advisors is projected to grow 15 percent from 2021 to 2031, much faster than the average for all occupations.”That’s great news for anyone looking to enter the field.
Financial advisor jobs are found primarily with banks, insurance companies, and mutual fund companies. Several independent financial advisor firms offer investment advice and other services without being affiliated with any particular bank or insurance company.
You’ll likely need to submit your resume and cover letter online to apply for a job. Most companies require you to attach your resume and cover letter as separate files.
Once you have your resume ready, there are several places where you can look for jobs in this field:
LinkedIn – This is probably one of the easiest ways to find jobs as well as network with other professionals in the industry.
Monster – Monster has been around forever and still offers some great opportunities for job seekers looking for work in this field.
Glassdoor – Glassdoor allows employees to give feedback about their employers, which can be helpful when deciding where you want to work!
Pro Tip: Most companies are seeking salespeople with a proven track record of successful sales. That means if you have experience in sales, be sure to include it in your resume and interviews. It will catch the recruiter’s eye.
Before I proceed, know that in the real world, step 3 can sometimes come before 2.
Build A Book Of Business
A book of business is simply a list of customers who have hired you to provide services.
Having a solid book of business means more than just having clients — it means having clients who trust you enough to refer new business to you
If you’re looking for a way to get more clients, consider doing what other successful advisors did:
Get A Mentor
Many top advisors have mentors who helped them get where they are today. Consider finding someone who has achieved what you want and ask them to help. The best mentors will give you feedback on your work and help you achieve your goals. They can also help you find other clients and improve your business overall.
Sign-up For A Industry-specific Sales Training For Advisors
These types of sales training focus on helping financial advisors learn how to sell their products and services effectively. By signing up for this kind of training, not only will you learn more about how to sell but also how to market yourself as well as your company. This type of training is great for anyone who wants to increase their sales but doesn’t have the time or resources to do so on their own.
Become A Investment Advisor Representative (IAR)
If you want to become a financial advisor and make great money, then become an Investment Advisor Representative (IAR). It means that you’ll have to set up your independent practice and register it with the Securities and Exchange Commission as a registered investment advisor (RIA). Requirements include passing the Series 65 or Series 66 exam and registration under the stipulations of the Investment Advisors Act of 1940.
Grow Your Knowledge And Keep Your Skills At The Forefront Of Your Industry With Continuing Education
The financial services industry is a highly regulated one, and advisors must adhere to some guidelines to stay in compliance with their firm and the regulators. You may often have to take continuing education courses and exams.
Additionally, you want to stay up to date with trends in the industry, new products, and strategies so that you can provide the best service for your clients.
You may also pursue higher degrees and register for training programs (especially sales training) that’ll help you succeed as an advisor.
Becoming a financial advisor is not easy. It takes time and effort to learn everything you need to know about the industry. You have to make sure you are up-to-date on everything that’s going on in the market. You also need to be able to communicate with people in a way they understand, but most importantly, you have to have a passion for helping others succeed in their financial goals.
I hope you’ve enjoyed this guide and that it has motivated you to pursue a career as a financial advisor. I am rooting for your success in the future. If you have any questions or concerns, please don’t hesitate to get in touch.