what is a financial planner?
As a financial planner, you help individuals and businesses chart a course for their financial goals. Your job is to assist clients in defining their financial goals and creating a road map for achieving them. A financial planner helps with budgeting and finding creative ways to save money. You also explore ways to minimize tax burdens and improve returns on investments.
Financial planning goals include investing for retirement, buying a new home, and determining the best insurance products. As a financial planner, you use your expertise to analyze clients' financial needs and develop a plan. This involves helping them optimize their budgets and expenses and providing strategies for paying off debt. A financial planner also advises on the financial products or investments that help clients accomplish their dreams.
Unlike financial advisors who offer general information on managing investments and arranging insurance coverage, financial planners provide a specialized service. A financial planner ensures the client is satisfied with the financial plan. In contrast, a financial advisor is focused on the investments and often acts as a stockbroker.
Would working as a financial planner suit your analytical and problem-solving skills? Then, read on to find out what competencies and qualifications you need to thrive in a financial planning role.
view jobs near youaverage financial planner salary
According to PayScale, the average salary of a financial planner is about $67,467 in 2023, excluding bonuses, commission, and profit sharing. An entry-level financial planner with a year of experience or less earns about $52,046, with all the tips, bonuses, and overtime pay included. Someone with one to four years of experience (early career) earns an average total compensation of $61,900.
If you have five to nine years of experience (mid-career financial planner), it is possible to earn a total compensation above $75,300, but if you have experience of 10-20 years, an average total compensation of $88,712 is feasible. If you have more than 20 years of experience, you can earn $99,671 or more.
factors affecting a financial planner salary
First, your qualifications impact your salary prospects as a financial planner. For instance, certified financial planners command higher salaries than those without certifications.
Secondly, the size of the organization you work for affects your salary, too. If you work for a small investment or insurance company or startup, most don't have the resources to pay high salaries. However, established financial service companies with more funds may be able to pay higher wages.
Thirdly, the geographical location of a financial planner's job also affects salary. Financial planners in metropolitan areas and coastal cities tend to make more money than those located in rural or suburban areas.
Finally, the type of clients you work with also influences your salary as a financial planner. Financial planners who advise high-net-worth individuals are likely to earn more than those serving general clients.
Wondering what you can earn as a financial planner? Find out immediately with the Randstad salary checker! You can quickly and easily see what the average salary of a financial planner is.
types of financial planners
Some types of financial planners include:
- certified financial planner: As a certified financial planner, you provide financial advice to individuals or businesses. You act in the client's best interests, following the stipulated code of ethics. Unlike other financial planners, you receive remuneration on a fee-only basis. You don't advertise a company's financial products to clients to earn a commission.
- investment advisor: As an investment advisor, you provide advice on buying or selling securities. Sometimes, you buy or sell securities on behalf of your client through a brokerage service. Since you adhere to fiduciary standards, your advice should be in the client's best interests.
- wealth manager: As a wealth manager, you deal with clients who have a high net worth. That means you specialize in financial planning aspects for the wealthy, like risk management to preserve assets, estate planning, and legal planning.
working as a financial planner
Financial planners are investment professionals with expertise in planning and forecasting market trends to assist in investment choices. If this is your career, read on for insights into financial planners' daily tasks and work environments.
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financial planner job description
The specific duties of financial planners vary depending on the client. However, standard tasks include:
- assessing a client's financial situation: Before providing professional advice on investments and wealth management, you conduct an assessment. You evaluate your client's assets and investments to determine their financial standing. You also discover your client's financial goals, risk appetite, and preferred investments.
- creating financial plans: When your clients have defined their goals for investment or saving, you help them create a plan for achieving them. For instance, if your client plans to buy a house, you develop a plan that allows them to save money for down payments and increase their income to finance a loan.
- developing budgets: Your job involves assisting clients with creating personal budgets. Budgeting is sound financial planning that allows the client to track the financial plan's performance. The aim is to establish saving patterns, minimize or control expenses, and develop ways to accumulate wealth.
- making recommendations on investments: As a financial planner, you provide investment and insurance services by recommending the best financial products that align with the client's goals. You also use your knowledge of market trends to advise clients on the best time to buy or sell a security.
- explaining financial laws and tax legislation to clients: A financial planner has an in-depth understanding of financial markets and legislation. You are up-to-date on the current tax legislation and can explain the new tax concepts and financial management laws. You should also regularly communicate changes affecting a client's financial position.
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financial planner work environment
A financial planner works in financial services or insurance industries. Some retirement service providers also hire financial planners. You spend most of the day at your desk reviewing clients' financial information or analyzing data on the performance of their investments. You also hold meetings with clients in your office to discuss their options and develop financial plans.
Sometimes, you travel to meeting venues. Remote work or work-from-home opportunities are available since you can complete your work online.
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who are your colleagues?
Depending on your employer and the industry you work in, your colleagues could include financial advisors, financial consultants, and client services managers. You could also be working in close proximity to paraplanners and mortgage brokers, as well as other specialists that could include, but not limited to, finance managers, auditors, and investment advisors.
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work schedule
Financial planners work full-time schedules of around 40 hours a week. Independent financial planners have flexible work schedules and can work part-time or as freelancers. Most financial planners work the traditional business hours, but overtime work and evening meetings are quite common.
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job outlook for financial planner
The financial planning sector is experiencing a surge in demand, fueling optimism for sustained growth and ample job opportunities. As the economy recovers and financial regulations evolve, the need for expert guidance becomes even more vital. Certified financial planners, wealth managers, and investment advisors are particularly in high demand. These roles, along with financial analysts and estate planners, offer promising career paths, each with its unique rewards and challenges. Even though some areas within the finance sector may see a decline due to automation, the roles that remain often offer higher pay and increased responsibilities. Furthermore, with the rise of fintech and digital investment platforms, new job roles are emerging, signaling exciting times ahead in a career in financial planning.
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benefits of working for randstad as a financial planner
Working through Randstad offers you a range of benefits:
- being paid weekly
- flexibility
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
Want a permanent contract? But you wonder why it would be interesting for you to work with a staffing company? A temporary job as a financial planner is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
financial planner skills and education
To embark on a career as a financial planner, a bachelor's degree in finance, economics, business, or a related field is necessary. Such programs offer foundational knowledge in areas like investment principles, tax laws, and financial analysis. Further, an understanding of business law, estate planning, and risk management is advantageous.
Post-graduate degrees, like a Master's in Business Administration (MBA) or a Master's in Finance, can provide a competitive edge. These programs deepen your knowledge, bolstering your ability to provide comprehensive financial advice.
Licensing is vital for financial planners who sell investment products or insurance. Licenses like Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) are highly regarded in the industry. These require passing rigorous exams and adhering to ethical standards.
Continuous learning is a key aspect of this field. Regular updates on financial laws, market trends, and investment products are necessary to maintain an edge. Many financial planners also opt for additional certifications to advance their careers, such as the Retirement Income Certified Professional (RICP) or the Certified Investment Management Analyst (CIMA) designation.
skills and competencies
Some of the qualities of financial planners include:
- customer-first mentality: A good financial planner should prioritize clients' needs. While you market and sell financial and investment products to clients, your priority is to ensure their best interests come first.
- financial aptitude: Financial acumen is vital in selling financial or investment products. Understanding the financial markets and the impact of market changes helps you provide the best advice.
- presentation skills: As a financial planner, presentation skills are essential since you spend most of your career presenting plans to clients or selling financial products. Good communication skills also help you share information in simple terms that clients understand.
FAQs about working as a financial planner
Here you will find answers to the most frequently asked questions about financial planners.
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what is the difference between a financial planner and a financial advisor?
According to the U.S. Securities and Exchange Commission (SEC), a financial advisor is someone who offers advice and direction on investment assets or retirement plans. Meanwhile, a financial planner is someone who helps clients plan and manage their long-term finances. Financial planners typically provide advice on budgeting, saving, investments, retirement planning, estate planning, taxes, and more.
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can a financial planner become an advisor?
Yes, if a financial planner passes the necessary exams and obtains the applicable licenses, they can become an advisor. Different states require different licensing requirements for advisors, so it's important to check with your state before pursuing this career path.
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what makes a successful financial planner?
In order to become a successful financial planner, it's important to have excellent problem-solving skills, an in-depth understanding of the financial markets, and a knack for explaining complex concepts in simple terms. You also need to be able to interact with clients on a personal level and understand their needs and goals. Lastly, staying up to date on the latest regulations and market developments is essential.
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how can you advance your career as a financial planner?
One of the best ways to advance your career is to obtain higher-level certifications such as the CFP or CFA. These certifications demonstrate that you have in-depth knowledge of financial planning and can help you stand out from the competition.
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what are some challenges about being a financial planner?
Staying abreast with rapidly evolving financial regulations may be taxing. However, regular professional development through seminars, webinars, and industry news can help mitigate this issue. Another common problem is building a client base from scratch. Financial planners use methods such as networking, referrals, and online marketing to create their client lists.
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how do I find a job as a financial planner?
Applying for a financial planning job is easy: create a Randstad profile and search our scrum master jobs for vacancies in your area. Then simply send us your CV. If you do not have a resume, no worries. Just check out our resume builder. This state of the art tool will help you to create your own resume. Need help with your application? Check out all our job-hunting tips!
