Perhaps the career title ‘Financial Planner’ needs a makeover.
For some, these words do not inspire or generate passion but, to the contrary, elements of a career in financial planning can do just these things. With a range of financial planner courses and financial planner training available, a career in this sector can offer varied experiences, job satisfaction and demand and in some cases, impressive remuneration.
Today, more and more people and companies are investing in the stock market and this is giving rise to increased demand and competition for financial planners. While there is some competition for financial planner jobs, many brokers and dealers will pay exceptional salaries for skilled, successful financial planners.
What are the skills required by financial planners?
- Communication skills and excellent written and spoken English are important. Financial planners need to be effective communicators through written and oral means.
- As financial planners are astute in working with money, they must have a strong aptitude for working with numbers. Mathematical skills are also crucial in the analysis of data and provision of guidance to investors.
- Financial planners need to understand tax laws so they are comprehensively informed and equipped to provide tax-related recommendations.
- It is useful for financial planners to effectively network and employ marketing and sales techniques in order to promote themselves and their services and thereby acquire more customers.
What does a financial planner do?
Essentially, financial planners provide guidance to people in all sorts of situations and here it is important to differentiate between financial planners (who work with personal investors) and financial analysts (who work with businesses and organisations). So, a financial planner may help someone who wants to plan for a comfortable and secure retirement, or a person developing a will, or a person who wants to save money to purchase a home.
Financial planners meet with their clients to understand their client’s situation and short and long term goals. From an informed point of view and taking into account any life changing events, they are then able to offer guidance.
Financial planners also need to assist clients when their circumstances change significantly, for example if a client changes or loses his or her job or if the client’s responsibilities change as a result of having children.
Financial planners may also advise on and sell life insurance, Superannuation and various Investments including Shares and Property – whilst some financial planners will work as private bankers effectively supporting very wealthy people with the management of their money.
Qualifications Required
While a range of financial courses and financial training programs are relevant to the role of the financial planner ASIC requires that a financial planner obtains a minimum of the Diploma of Financial Planning, also often referred to as RG 146. Financial courses in areas such as: taxation, risk management and estate planning are also relevant and commonly undertaken by financial planners.
Experience
Although it is not essential, it is not uncommon for financial planners to have worked in roles such as an accountant, auditor or lawyer before becoming a financial planner.
Reasons to Become a Financial Planner
- There is an excellent job outlook for financial planners with demand projected to increase markedly
- This job offers great variation. Financial planners can be independent and self-employed (and even work from home) or work for companies and larger organisations
- Financial planners may branch out to be financial advisors and work in the banking, finance and insurance industries
- The role can offer considerable job satisfaction and fulfilment. Many financial planners derive satisfaction from helping people make the most of their money and situation
- There are limitless opportunities for professional development and ongoing education
- In terms of salary and reputation, financial planners will often build their client base and achieve a trajectory of success over time thanks to trailing commissions
- Most financial planners either charge their clients fees for planning advice or a commission on investments made with the advice provided
- An extensive range of courses and training programs are available to skill and educate financial planners
In an economy and financial climate where people are acutely aware of the need to keep their money secure and have it work for them, there is an obvious role for financial planners. Skilled and committed financial planners will always be in demand and indications are that this demand is set to grow. Those considering a career in financial planning should carefully evaluate the courses and training available to select the best one for their needs and circumstances.
