How to become a personal financial advisor

Are you passionate about helping people better manage their money? Find out how to become a personal financial advisor so you can assist families and individuals in growing and protecting their wealth.

What does a personal financial advisor do?

A personal financial advisor helps people create financial goals and make decisions to help them accomplish those goals. In this role, you may:

• Work with clients to set goals for retirement and wealth creation
• Evaluate a client's financial picture, including assets, liabilities, insurance policies, and cash flow
• Recommend financial products and services, including banking, lending, and investments
• Educate clients on financial habits like saving, spending, and budgeting
• Offer advice about tax planning or complete tax returns

According to the Bureau of Labor Statistics (BLS), personal financial advisors earn a median annual salary of $99,580 as of May 2023.

Steps to become a personal financial advisor

Financial advisors play a pivotal role in helping people reach their financial goals. The following three steps can help you learn how to become a personal financial advisor and get on the path to a fulfilling career:

Step 1: Earn a bachelor's degree

You do not have to have a bachelor's degree to start a career as a personal advisor, but many employers look for a degree as a sign that you have a solid foundation of knowledge when it comes to financial principles. You might consider obtaining your degree in finance or a closely related field, such as accounting, economics, or business.

Step 2: Obtain the necessary licensing

Depending on what you sell and how you get paid for your services, you may need to obtain a license from the Financial Industry Regulatory Authority (FINRA). Consider whether you need the following licenses:

• Series 3: Allows you to sell real estate, life insurance, and commodities
• Series 6: Allows you to sell mutual funds, variable annuities, variable life insurance, and other packaged products
• Series 7: Allows you to sell many investment products, except for commodities futures, real estate, and life insurance
• Series 63: Allows you to sell securities in many states
• Series 65: Allows you to seek compensation with fees instead of commissions

To take these exams, you will likely need sponsorship from a FINRA-registered firm.

Also, keep in mind that some states require additional examinations, such as a life insurance exam, to sell annuities or other insurance products. So it's essential to check with your state's official regulatory office.

Step 3: Consider getting certified

Many financial planners don't require certifications, but the distinction they carry can make it easier to land clients or get a job with a financial firm. You may consider becoming a Certified Financial Planner (CFP), which is a designation offered by the Certified Financial Planner Board of Standards.

To obtain this certification, you'll need a bachelor's degree from an accredited college or university. For the purpose of CFP certification, you can get your degree in cybersecurity, political science, or any other discipline you are interested in.

You'll also need to pass the CFP exam, garner 4,000 to 6,000 hours of experience, and complete some coursework through a board-registered program.

Aside from your CFP designation, you may also wish to pursue other certifications in your field. These may include a Chartered Financial Analyst, a Chartered Financial Consultant, or a Certified Private Wealth Advisor, which can give you the skills you need to work with high-net-worth individuals and families.

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