How to Become a Financial Planner

The most important question that comes up to our mind is what does certified financial planner do? Here in this article, we will be providing you with financial planning career information and also how to become a financial planner. Certified financial planning jobs include helping people in maintaining their finances and projects. Certified financial planning jobs include helping in defining financial goals for their clients, for example when the client will be using their savings and what they’ll be using it for. To make a plan in accordance with the client’s financial situation, certified financial planners are required to know personally as well as professional and financial information about their clients and further use this data to create projections and accomplish their client’s goals. The factors deciding these projections are realistic assumptions about inflation, investment returns, how much one can save, and how much one will earn and spend.

Tax planning

Tax planning can take a number of different forms. Individuals who opt for a career as a financial planner often help individuals and corporations address certain tax issues and find a solution for how to maximize their possible tax returns and minimize tax accountability. There are certain advisors who also help clients with preparing their taxes and completing their annual taxes.

Estate planning

This pursuit makes things a bit simple for the loved ones of the client once he or she has passed away. Preparing a will can be considered a part of a financial planner’s services. Planning for estate also helps prepare for any estate tax an individual may be subject to.

Investing

Though financial planning doesn’t include the actual management of one’s assets, it can still help with an individual's investment portfolio by mapping out how much one should be investing in which types of investments.

Insurance

Individuals who opt for a career as a financial planner can help individuals evaluate their insurance requirements. Some financial planners have also licensed insurance agents and sell people insurance themselves. However, they typically earn a commission in such cases, which can create a conflict of interest.

Planning and budgeting

This is perhaps the foundation of financial planning. Individuals who opt for a career as financial planners are supposed to make sure the client is spending the right amount given his/her income and is also required to make sure that they aren’t going into debt.

Below, we have mentioned some alternative careers for financial advisors and certified financial planner.

Financial analyst: Financial analysts are liable for monitoring the financial performance of an organization against some strategy, evaluating operating results and market trends to produce predictions, and assisting senior management in making financial and operational strategies by producing periodic reports. These types of certified financial planners maintain financial records that function as executive summary material. It is the duty of the financial data analyst to identify appropriate insights and assemble analytical reports that allow other business staff to make sensible decisions

Sales agents, securities, and commodities: Sales agents, securities, and commodities maintain proper transaction records and record sales or other business arrangements. They execute sales orders and submit transactions required by the client for processing. Support customers to evaluate the assets, liabilities, profitability, coverage of benefits, tax affairs, or financial targets of customers. Sales agents, securities and commodities study financial periodicals, bonds and stocks reports, company documents, or other resources to identify possible client investments or to keep updated with developments that influence market trends.

Financial examiners: Financial examiners ensure that the laws governing financial institutions and transactions are respected. They review balance sheets, assess loan risk and evaluate bank management. Financial reviewers ensure that banks and other financial institutions comply with the laws and regulations governing them, and also see that financial and real estate transactions comply with those rules. Financial examiners can work in either risk assessment or compliance with consumer requirements. A financial examiner who specializes in risk assessment is responsible for the financial system's stability, making sure that financial institutions offer secure loans and have cash available to cover unforeseen losses.

Accountants: The financial statements are compiled and checked by accountants. These types of certified financial planners guarantee accurate financial records and pay taxes properly and on time. Accountants evaluate the financial operational activities and work to make sure institutions are working properly. As well as reviewing and preparing financial documentation, accountants and auditors have to explain their findings. This involves organizing detailed documents and meeting with managers of organizations and also with clients.

Actuaries: Actuarians use statistical methods and mathematical competencies to analyse the probability of an accident and its economic consequences. Insurance firms have a legal responsibility to employ at least one actuary for financial accounting guidance. Actuaries evaluate the risk and uncertainty of financial costs. These types of certified financial planners utilize mathematics, statistics, and financial theory to evaluate the value of future risks, and they help companies and customers formulate strategies that reduce the cost of such a risk. The work of actuaries is important to the insurance sector.

Economists: Economists are specialists in finance who research business behaviour. The main duties include gathering and processing financial and socio-economic information, guiding companies and governments on financial decisions, and designing economic forecasting models. They assemble, analyze, and report data in order to understand and apply mathematical methods and data strategies to economic phenomena and forecast market dynamics. These types of certified financial planners also develop economic specifications and regulations and develop viewpoints used throughout forecasting and economic policy implementation.

Business management consultant/analyst: Management experts, also referred to as management consultants, recommend ways to boost the performance of an organisation. These types of certified financial planner advise executives on how to make companies more competitive by reducing costs and growing revenues. They collect and organize information about the topic to be fixed or the process to be enhanced and evaluate employees and perform on-site evaluations to assess the appropriate procedures, facilities, and personnel.

Financial advisor: A financial advisor allows individuals to keep their budgets and projects going. He or she helps to identify consumers' financial objectives, such as when consumers will use their savings and what they will use them for. A financial advisor can be described as an investment and finance-trained person who helps individuals and companies achieve their long-term financial goals.

Treasurer: A treasurer can serve the objective by overseeing the daily activities of employees who are involved in producing financial reports and approved budgets. The role of treasurers is to supervise a corporation or organisation's in-house finance department.

Individuals in the certified financial planner career path are required to have frequent contact with people on various levels of their organizations. They typically work thirty-five to forty hours per week. Individuals who opt for a career as a personal financial advisor might be required to work extra hours during the months before taxes or annual reports are due. Planners who work for the government may have to travel often.

Does Financial Planner require travelling?

Likely

Individuals in the financial advisor career path in India working for the government are required to travel quite often depending upon the project they’ve been assigned and the requirements they are required to fulfil. However, complete travel expenses are provided by the government to the financial planners travelling to different work locations.

Employment Shifts

Full Time, Part Time, Work From Home

Individuals in the financial advisor career path in India are generally required to work from 9 am to 5 pm, five days in a week. Individuals who opt for a career as financial planners typically work for 35-40 hours per week and are required to work from the organisation’s premises.

Employment Nature

Permanent

Individuals in the certified financial planner career path are employed on both a contractual and permanent basis. There are organizations that hire accountants for a particular project which accounts for short-term employment and is contract based. Also, there are industries which hire accountants for the long term which accounts for managing their overall financial aspect and market.  

Work Place

Office

Financial planners are required to work in office from their organization’s premises. Individuals who opt for a career as financial planners typically work for 35-40 hours per week. Depending on the targets approaching and projects allotted to them, they may be required to work overtime.

Presence in Geographical Area

Rural, Semi-urban, Urban

Top recruiters for the position of a financial planner are usually from huge and established industries which are situated in tier 1 cities like New Delhi, Bengaluru, Pune, Mumbai, Chennai, and Hyderabad.

Time Pressure

Likely

For individuals in the certified financial planner career path, time pressure increases during the end of tax months or financial years. In situations like this, they are required to work overtime. Generally, when the work pressure is low, they work according to their scheduled time. But the time pressure increases during the end of tax months or a specific project deadline. 

Overtime Details

Typically, individuals who opt for a career as financial planners work for nine hours per day. The working hours exclusively depend on the role and responsibilities assigned. Individuals who opt for a career as a personal financial advisor with a considerable amount of experience are required to work for long hours usually than the normal working hours.

Weekly Hours of Work

Min 35 Hours

Individuals in the financial advisor career path in India are required to work in the office from their organization’s premises. Individuals who opt for a career as financial planners typically work for 35-40 hours per week. Depending on the targets approaching and projects allotted to them, they may be required to work overtime.

When it comes to how to become a financial planner, the first thing that they should know about is the skills required to become a financial planner. Some of the essential skills we have mentioned are below. 

Critical Thinking: Critical thinking skills are important to spot trends, examine the pros and cons of a particular course of action, and make changes as per the requirement. In the organization, critical thinking skills should, therefore, be demonstrated. Critical thinking is critical as it makes sure that you find the best solution to a problem.

Communication Skills: Communication skills are essential in the profession of Financial planning. Individuals in the financial advisor career path in India are required to work with a variety of people who have different economic circumstances and stages of knowledge. Certified financial planners must be able to present complex information and explain technical slang and incomprehensible terms. Finally, they must generate trust with their clients and cohere to the industry’s set of ethical benchmarks, including integrity, objectivity, fairness and confidentiality.

Research Skills: Research skills allow people to define an issue, obtain knowledge resources that can solve that problem, assess the quality and value of such resources and find an appropriate solution. Individuals in the certified financial planner career path must learn how to conduct considerable research into economic theories and best applications. The certified financial planner is required to develop critical thinking skills which are vital to ransack deeply into an economic topic and analyze data. As a certified financial planner, the individual is required to know how to independently assess information in order to reach valid solutions.

Problem-Solving Ability: Certified financial planners are required to learn how to analyze potential barriers and prepare solutions. Supporting their keen knowledge of economic theories and systems, they must be able to offer advice and solutions to team members and clients to help them make low-risk, high-benefit financial solutions. When managers speak regarding problem-solving skills, individuals who opt for a career as a financial planner frequently focus on the ability to manage challenging or unpredictable organizational conditions, and also complex financial issues. Institutions depend on people who could really evaluate all kinds of errors and come up with solutions in a logical manner.

Leadership: Along with corporate skills, they must learn the teaching skills necessary to instruct their clients or to lead a team of advisors. Individuals in the certified financial planner career path must become experienced in figuring out the best explaining methods for a particular client, and instructional plans, and learn how to assess and evaluate progress. Most individuals are trying to equate leadership with a particular position or job description. And to have followers they need more than just a title at the entrance. Leadership is the capacity of an individual or group of people to manipulate people in order to develop better performance.

Work Ethics: Clients develop a personal ethos and commitment to operate legally and ethically in their financial dealings. This includes fully disclosing data that would present a conflict of ideas; being honest, open and fair; and maintaining secretiveness.

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We have provided below financial planner certification for aspiring individuals who want to opt for a career as a financial planner. 

Associate Financial Planner: The associate financial adviser is a junior adviser who provides technical support for all financial advisers at the senior level. The major roles and responsibilities of an associate financial planner include data gathering and analysis, development of financial planning recommendations, implementation and portfolio management. These types of certified financial planner are also required to participate in client meetings but not in an advisory position. Along with this,  the position has limited decision-making rights on client matters. Associates may also be required to participate in developing investment and financial planning pathways as part of the firm’s investment committee and financial planning committee.

Financial Analyst: As a financial analyst, one is required to determine the cost of operations by establishing standard costs; collecting operational data. They are also responsible for Identifying financial status by comparing and assessing actual results with plans and forecasts. They guide cost analysis solutions by organising and enforcing strategies and processes; providing trends and forecasts; explaining procedures and techniques; recommending actions.they also help in improving financial status by analyzing results; monitoring variances; identifying trends; recommending actions to management, they are also required to reconcile transactions by comparing and correcting information assigned to them.  These types of certified financial planner contributes to team effort by accomplishing the required results as needed.

Financial Planning Manager: Financial Planning Managers supervise all related budgetary processes in a company. These types of certified financial planner are required to work to expand business models that affect budgets, and company expenditures. These managers are also responsible for analysing and authorizing all department budgets. The major roles and responsibilities of a Financial Planning Manager may include analysis, risk evaluation, managing these risks, forecasting economic trends, enforcing pecuniary policies and guidelines throughout the company, and managing any other related projects.

High-paced development in the personal financial advisor career industry definitely calls for large employers throughout the nation. It broadly seeks graduates having commerce, economics, finance, mathematics and management background in education. Graduates get started in financial planning companies. Mutual fund firms also hire fresh and skilled graduates and so do stock brokerage houses. The investment advisor career path mainly contains sales and marketing, fund accounting, investment and research, operations and management. 

Indian financial market is one of the oldest markets in the world and with a quick rate of growth it has also set foot into the best markets in emerging economies of the world. The history of the Indian capital industry dates back 200 years when it was under the rule of the East India Company. Certified financial planner career opportunities are rapidly expanding these days. In the current scenario, it includes the primary industry, FDIs, alternative investment options, banking and insurance and pension sectors, and asset management segment. The capital market was at first established around Mumbai including approaching 250 security brokers participating in active commerce throughout the second half of the 19th century. At present, the financial planning career progression in India is growing at a much faster rate than in any other sector. It has expanded itself and also managed from the 19th century with the securities exchanges in Mumbai, Ahmedabad, and Kolkata. In the 60s, the number of securities exchanges became eight which includes Madras, Kanpur, Delhi, Bangalore, and Pune apart from those three. At present India has 23 regional securities exchanges.

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