Financial Planning Degree Program and Career Education
Financial planning is important to individuals as well as businesses. Within this general field, there are two specific types of occupations. Individuals who need advice and assistance in planning for their financial future, whether for their retirement or for their children's college education, call on financial planners to assist, guide and advise them. Financial analysts, on the other hand, work for businesses such as banks and insurance companies, helping these companies and their clients with investment decisions.
Individuals who work in the financial planning industry must enjoy working with, talking with, and teaching others. Excellent communication and listening skills are vital traits. They should enjoy working with numbers, and they should excel at analyzing and solving problems. They should be able to understand complicated financial documents, and they should have the desire and willingness to keep up to date on the economy, tax regulations, and other financial laws.
Education, Training and Degrees in Financial Planning
Financial analysts, who help businesses assess investment options, must have a minimum of a bachelor's degree in finance, commerce, accounting, business administration, economics, statistics, or a related field to be considered for most positions within an organization. An MBA degree is beneficial and is often preferred, although not always required.
Personal financial planners, who help individuals plan for their financial future, usually have at least a bachelor's degree, whether in accounting, finance, mathematics, law, or business. The higher the degree, the more trust one can inspire in individuals who are entrusting their financial future, and that of their family, to the financial planner.
Although certification is not required to practice financial planning, it can help advance one's career. With a bachelor's degree and three years of work experience in a relevant field, financial analysts can become Certified Financial Analysts (CFAs) by passing a series of three examinations sponsored by the CFA Institute. The Certified Financial Planner Board of Standards offers personal financial planners the ability to become Certified Financial Planners if they have completed the relevant work experience and required education and pass an exam. Financial planners may also become Chartered Financial Consultants (ChFCs) upon completion of the required work experience and an eight-course program.
Explore Career Opportunities in Financial Planning
As the baby boom generation grows up, more and more individuals of that aging generation are seeking the advice of financial planners to assist them in planning for their retirement or their children's education. In addition, as the population becomes wealthier and more educated, more people will require investment advice. Similarly, as businesses grow, merge, and globalize, an increasing number of financial analysts will be needed to help financial institutions make wise investment decisions.
Below are more details concerning careers within the financial planning industry.Financial Analyst
Financial analysts are also known as securities analysts or investment analysts. They research, analyze and assess the economic performance, value and future earnings potential of businesses and industries so that financial institutions can make wise investment decisions. They usually study an entire industry, keeping up-to-date on trends, products, value, and competition. They inform financial institutions of potential risks and returns of specific investments.
Financial Planner
Financial planners consult with a client to determine income, spending, current investments, and goals. They then identify problem areas, help develop a customized financial plan, and suggest suitable investment opportunities. Financial planners advise on a number of topics, including real estate, retirement, insurance, college funding, and general investing. They typically assess the client's investments quarterly, bi-annually, or annually.
There are two types of financial planners: commission planners and for-fee planners. Commission planners receive commissions for selling specific insurance or investment products to their clients. For-fee planners, on the other hand, are independent and do not receive commissions from companies or products they recommend. Instead, the client pays them a set fee.
