Are you looking for a stable and rewarding career in finance? How about exploring a career in the financial sector as a certified financial planner (CFP)? Not only is the job market for CFPs expected to grow, but these professionals also have the opportunity to make a real difference in the lives of their clients. This article will explore the job market for certified financial planners, including educational qualifications, salary, responsibilities, and more.
Job Market, Forecast, and Salary for Certified Financial Planner Jobs
According to the U.S. Bureau of Labor Statistics, the job outlook for personal financial advisors, which includes certified financial planners, is optimistic. The BLS projects that the employment of personal financial advisors will grow at a rate of 7% from 2019 to 2029, which is faster than the average for all occupations. Several factors drive this growth, including an aging population and the increasing complexity of financial products.
Additionally, the median annual salary for financial advisors, which includes certified financial planners, is $87,850 as of May 2020. This can vary depending on location, experience, and the type of firm you work for. According to data from Glassdoor, the average salary for a certified financial planner is around $74,922 per year. This number is backed up by Indeed, which says the average salary for a certified financial planner is around $78,500 per year. These numbers align with the BLS data and demonstrate that certified financial planners can expect to earn a competitive salary.
Career Opportunities and Growth Path for Certified Financial Planners
One of the main advantages of becoming a certified financial planner is the wide range of career opportunities available. Certified financial planners can work in various settings, including banks, investment, insurance, and accounting firms. Some may even choose to start their own financial planning practice.
One of the most common career paths for certified financial planners is to work at a financial services firm, such as a bank or investment company. They typically start as a junior financial advisor, working with clients to develop financial plans and make investment recommendations. As they gain experience and develop a client base, they may be promoted to a senior financial advisor or managerial roles.
Another career path for certified financial planners is to start their own financial planning practice. This can be challenging, as it requires a significant amount of business acumen and the ability to attract and retain clients. However, it can also be a highly rewarding career, as it allows certified financial planners to set their own schedules and be their own bosses.
Additionally, many certified financial planners also choose to specialize in a specific area of financial planning, such as retirement planning, estate planning, or tax planning. Specializing in a specific area can open up additional career opportunities and result in higher earning potential.
To sum it up, becoming a certified financial planner opens up a wide range of career opportunities and growth paths. Whether you work for a financial services firm, start your own practice, or specialize in a specific area of financial planning, you will have the opportunity to build a rewarding and successful career.
Roles and Responsibilities of a Certified Financial Planner
The role of a certified financial planner (CFP) is to help individuals and families achieve their financial goals by developing and implementing a comprehensive financial plan. The specific duties and responsibilities of a CFP can vary depending on the employer and the individual’s area of specialization. However, several key roles and responsibilities are typical among CFPs.
- Assessing Clients’ Financial Situation: One of the key roles of a CFP is to assess clients’ current financial situation. This includes gathering information about the client’s income, expenses, assets, liabilities, insurance coverage, and taxes. The CFP will also assess the client’s financial goals and risk tolerance.
- Developing a Financial Plan: Once the CFP has assessed the client’s financial situation and goals, they will develop a comprehensive financial plan. This plan will include investments, insurance, tax, retirement, and estate planning recommendations. The CFP will also review the plan with the client to ensure it meets their needs and goals.
- Implementing the Financial Plan: After the plan is developed, the CFP will work with the client to implement the plan. This may include making investment recommendations, setting up insurance policies, and working with other professionals, such as tax accountants or attorneys. The CFP will monitor the plan’s progress and make adjustments as needed.
- Providing Ongoing Financial Advice: A CFP’s role is not limited to developing a financial plan; they also provide ongoing advice and support to their clients. This may include answering questions, monitoring investments, and making recommendations for changes to the plan as the client’s needs and goals change over time.
- Compliance With Laws and Regulations: CFPs are also responsible for staying up-to-date with the laws and regulations that govern the financial industry and ensuring that their advice and recommendations comply with these regulations.
In summary, a CFP is responsible for assessing clients’ financial situation, developing a comprehensive financial plan, implementing that plan, providing ongoing advice, and ensuring compliance with laws and regulations. Through these responsibilities, CFPs help their clients achieve their financial goals.
Educational Qualifications and Certification Courses for Financial Planners
To become a certified financial planner, an individual must have a bachelor’s degree in a related field, such as accounting, finance, or economics. However, a degree in any field is acceptable if an individual completes the necessary coursework in financial planning. Many financial planning programs are now offered in graduate schools as well. It is highly recommended that individuals complete coursework from a college or university registered with the Certified Financial Planner Board of Standards.
After completing the necessary coursework, individuals must pass a rigorous exam, the CFP® certification examination, which tests their knowledge and understanding of financial planning. In addition, candidates must have at least three years of full-time financial planning-related experience to get a foothold in the field. For advanced positions, an additional two years of experience and a master’s degree or higher in a related field are a must. Furthermore, CFPs must also fulfill continuing education requirements and abide by a code of ethics to maintain their certification.
In addition to a bachelor’s degree, financial planners must also complete a certification program, such as the CFP® certification program, which is offered by the Certified Financial Planner Board of Standards, Inc. (CFP Board). The certification process includes passing an exam, meeting experience requirements, and completing continuing education courses to maintain the certification.
It is worth noting that some financial planning firms prefer to hire those with a degree in accounting, as it provides a solid foundation of knowledge in financial planning, taxes, and wealth management. Moreover, many CFPs also hold full-time positions in financial services while delivering client services on a part-time or consultant basis.
The Benefits of Pursuing Certified Financial Planner Jobs
The benefits of pursuing certified financial planner jobs are numerous. Firstly, it is a well-paying profession. Furthermore, the job market for CFPs is expected to grow faster than the average for all occupations, which means that the demand for certified financial planners will continue to increase in the future.
Being a CFP can also open doors to other career opportunities in the financial services industry, such as working in financial planning firms, wealth management firms, banks, and insurance companies. This career provides a growth path as well, as one can progress from a financial advisor to a senior financial advisor, portfolio manager, and eventually, a partner or manager.
In summary, certified financial planner jobs are in high demand and offer a challenging and rewarding career path with a wide range of opportunities for growth and advancement. Becoming a certified financial planner is a great option to consider if you’re looking for a career in the financial industry.
