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Who is a Financial Planner?
You get recession, you get stock market declines. If you don’t understand that’s going to happen, then you are not ready and you will not do well in the markets ~ Peter Lynch
A financial planner assists clients in developing plans to accomplish their long-term financial objectives. He or she may provide general financial advice or focus on a particular subject, such as estate planning, taxes, investments, or retirement. A financial planner can be defined as a person qualified in investment and finance, who helps individuals and corporations meet their long-term financial goals.
Certified financial planning jobs include working closely with both individuals and corporations to help them attain their financial objectives. The financial planner works over several factors like budgeting, investments, saving for retirement, tax planning, insurance coverage, and more. Here in this article, we will be discussing how to become a financial planner, a financial advisor career path in India, and financial planner certification.
Quick Facts for Financial Planner
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Industry
Finance
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Average Salary in India
₹156667
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Suitable for
Male, Female
Individuals can take up a career as financial planners, it is not gender-specific. Men, women, and others can choose a career as financial planners. The work is gender neutral.
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Any special needs
Yes
Everyone, including those with physical disabilities, is appropriate for individuals who opt for a career as financial planners. The career as financial planners is well suited to everyone, even those with special needs.
Table of Contents for Financial Planner
What is the role of Financial Planner?
Certified financial planning jobs include helping people in maintaining their finances and projects. Certified financial planning jobs include helping in defining financial goals for their clients, for example when the client will be using their savings and what they’ll be using it for.
To make a plan in accordance with the client’s financial situation, certified financial planners are required to know personally as well as professional and financial information about their clients and further use this data to create projections and accomplish their client’s goals.
Financial planners help individuals and corporations address certain tax issues and find a solution for different tax related problems.
Financial planners help with an individual's investment portfolio by mapping out how much one should be investing in which types of investments.
A financial planner can help individuals evaluate their insurance requirements.
Financial planners make sure the client is spending the right amount given his/her income.
Types of a Financial Planner
There are different types of financial planners based on skills, experience, and expertise held by an individual. This may include financial analysts, accountants, actuaries, and others. Below, we have mentioned some alternative careers for financial advisors and certified financial planners.
Financial analyst: Financial analysts are liable for monitoring the financial performance of an organisation against some strategy, evaluating operating results and market trends to produce predictions, and assisting senior management in making financial and operational strategies by producing periodic reports.
Sales agents, securities, and commodities: Sales agents, securities, and commodities maintain proper transaction records and record sales or other business arrangements. They execute sales orders and submit transactions required by the client for processing. Support customers to evaluate the assets, liabilities, profitability, coverage of benefits, tax affairs, or financial targets of customers.
Financial examiners: Financial examiners ensure that the laws governing financial institutions and transactions are respected. They review balance sheets, assess loan risk and evaluate bank management. Financial reviewers ensure that banks and other financial institutions comply with the laws and regulations governing them, and also see that financial and real estate transactions comply with those rules.
Accountants: The financial statements are compiled and checked by accountants. These types of certified financial planners guarantee accurate financial records and pay taxes properly and on time. Accountants evaluate the financial operational activities and work to make sure institutions are working properly.
Actuaries: Actuarians use statistical methods and mathematical competencies to analyse the probability of an accident and its economic consequences. Insurance firms have a legal responsibility to employ at least one actuary for financial accounting guidance. Actuaries evaluate the risk and uncertainty of financial costs. These types of certified financial planners utilise mathematics, statistics, and financial theory to evaluate the value of future risks.
Economists: Economists are specialists in finance who research business behaviour. The main duties include gathering and processing financial and socio-economic information, guiding companies and governments on financial decisions, and designing economic forecasting models. They assemble, analyse, and report data in order to understand and apply mathematical methods and data strategies to economic phenomena and forecast market dynamics.
What is the workplace/work environment of Financial Planner like?
Individuals in the certified financial planner career path are required to have frequent contact with people on various levels of their organizations. They typically work thirty-five to forty hours per week. Individuals who opt for a career as a personal financial advisor might be required to work extra hours during the months before taxes or annual reports are due. Planners who work for the government may have to travel often.
Does Financial Planner require travelling?
Likely
Individuals in the financial advisor career path in India working for the government are required to travel quite often depending upon the project they’ve been assigned and the requirements they are required to fulfil. However, complete travel expenses are provided by the government to the financial planners travelling to different work locations.
Employment Shifts
Full Time, Part Time, Work From Home
Individuals in the financial advisor career path in India are generally required to work from 9 am to 5 pm, five days in a week. Individuals who opt for a career as financial planners typically work for 35-40 hours per week and are required to work from the organisation’s premises.
Employment Nature
Permanent
Individuals in the certified financial planner career path are employed on both a contractual and permanent basis. There are organizations that hire accountants for a particular project which accounts for short-term employment and is contract based. Also, there are industries which hire accountants for the long term which accounts for managing their overall financial aspect and market.
Work Place
Office
Financial planners are required to work in office from their organization’s premises. Individuals who opt for a career as financial planners typically work for 35-40 hours per week. Depending on the targets approaching and projects allotted to them, they may be required to work overtime.
Presence in Geographical Area
Rural, Semi-urban, Urban
Top recruiters for the position of a financial planner are usually from huge and established industries which are situated in tier 1 cities like New Delhi, Bengaluru, Pune, Mumbai, Chennai, and Hyderabad.
Time Pressure
Likely
For individuals in the certified financial planner career path, time pressure increases during the end of tax months or financial years. In situations like this, they are required to work overtime. Generally, when the work pressure is low, they work according to their scheduled time. But the time pressure increases during the end of tax months or a specific project deadline.
Overtime Details
Typically, individuals who opt for a career as financial planners work for nine hours per day. The working hours exclusively depend on the role and responsibilities assigned. Individuals who opt for a career as a personal financial advisor with a considerable amount of experience are required to work for long hours usually than the normal working hours.
Weekly Hours of Work
Min 35 Hours
Individuals in the financial advisor career path in India are required to work in the office from their organization’s premises. Individuals who opt for a career as financial planners typically work for 35-40 hours per week. Depending on the targets approaching and projects allotted to them, they may be required to work overtime.
How to become a Financial Planner?
Steps to become a Financial Planner
In this section, we will explore the steps on how to become a Financial Planner in India. Financial planning is a rewarding career that involves helping individuals and families achieve their financial goals. By following these guidelines, you can embark on a path to become a skilled and trusted financial planner in the Indian market.
What are the skills and qualities required to become a/an Financial Planner?
When it comes to how to become a financial planner, the first thing that they should know about is the skills required to become a financial planner. This may include communication skills, interpersonal skills, research skills, knowledge, analytical skills, and others. Some of the essential skills we have mentioned are below.
Critical Thinking: Critical thinking skills are important to spot trends, examine the pros and cons of a particular course of action, and make changes as per the requirement. In the organisation, critical thinking skills should, therefore, be demonstrated. Critical thinking is critical as it makes sure that you find the best solution to a problem.
Communication Skills: Communication skills are essential in the profession of Financial planning. Individuals in the financial advisor career path in India are required to work with a variety of people who have different economic circumstances and stages of knowledge. Certified financial planners must be able to present complex information and explain technical slang and incomprehensible terms.
Research Skills: Research skills allow people to define an issue, obtain knowledge resources that can solve that problem, assess the quality and value of such resources and find an appropriate solution. Individuals in the certified financial planner career path must learn how to conduct considerable research into economic theories and best applications.
Problem-Solving Ability: Certified financial planners are required to learn how to analyse potential barriers and prepare solutions. Supporting their keen knowledge of economic theories and systems, they must be able to offer advice and solutions to team members and clients to help them make low-risk, high-benefit financial solutions.
Leadership: Along with corporate skills, they must learn the teaching skills necessary to instruct their clients or to lead a team of advisors. Individuals in the certified financial planner career path must become experienced in figuring out the best explaining methods for a particular client, and instructional plans, and learn how to assess and evaluate progress.
Which certifications and internships can be helpful in becoming Financial Planner?
Apart from formal training, you can also opt for an additional short-term certification course to gain more knowledge and enhance your skills. Pursuing a specialised certification is not mandatory but it is recommended. We have provided below financial planner certification for aspiring individuals who want to opt for a career as a financial planner.
Financial Analysis and Decision Making with Xero and Tableau
Understanding Public Financial Management: How Is Your Money Spent?
Adaptive Markets: Financial Market Dynamics and Human Behavior
Internship Availability
Financial advisory career path includes analysing the flow of money in and out of investments. The financial planner career path offers a magnificent chance to gain real-world experience in the high-stakes finance industry. While most internships are unpaid, some business internships do carry a small stipend. Interns in the financial sector can expect a nominal hourly rate.
Financial Planner Jobs and Salaries
Financial Planning Manager
- Average Salary 156667
Job Description
Financial planners advise clients on managing their finances, including investments, insurance, and retirement planning, to help them meet financial goals.
Salary Description
A financial planner's salary can vary widely based on factors like experience, location, and clientele. Commission-based earnings and bonuses may also contribute to a financial planner's overall compensation.
What is the job outlook for Financial Planner?
High-paced development in the personal financial advisor career industry definitely calls for large employers throughout the nation. It broadly seeks graduates having commerce, economics, finance, mathematics and management background in education. Graduates get started in financial planning companies. Mutual fund firms also hire fresh and skilled graduates and so do stock brokerage houses.
Frequently Asked Questions for Financial Planner
Que. What does a financial planner do?
Ans.A financial planner is a professional who helps you organize your finances and projects the results of your savings and investments so you can see how well prepared you are for retirement. They also help you make decisions with your money that will help you reach your financial goals as efficiently as possible.
Que. How much does it cost to go to a financial planner?
Ans.Fixed fees and hourly fees typically apply to financial planning or consulting services, as well as special projects. Fixed fees typically range from $1,000 to $3,000. Average hourly fees can be anywhere from $100 to $400 an hour, depending on the advisor and the complexity of the project.
Que. What are the three aspects of financial planning?
Ans.The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.
Que. What is the best qualification for a financial planner?
Ans.The best financial planner qualification is typically a bachelor's degree in finance, economics, or a related field. Additionally, obtaining industry-recognized certifications like Certified Financial Planner (CFP) can enhance one's qualifications.
Que. What is the best qualification for a financial planner?
Ans.The best financial planner qualification is typically a bachelor's degree in finance, economics, or a related field. Additionally, obtaining industry-recognized certifications like Certified Financial Planner (CFP) can enhance one's qualifications.
Que. Is it hard to be a financial planner?
Ans.Becoming a financial planner can be challenging due to the complex nature of financial markets and regulations. It requires a strong understanding of finance, excellent communication skills, and a commitment to continuous learning.
Que. Is it hard to be a financial planner?
Ans.Becoming a financial planner can be challenging due to the complex nature of financial markets and regulations. It requires a strong understanding of finance, excellent communication skills, and a commitment to continuous learning.
Que. How to become a financial planner without a degree?
Ans.While a degree in finance or a related field is common, it's possible to become a financial planner without a degree by gaining relevant work experience, pursuing certifications like CFP, and networking within the industry to secure opportunities and clients.
Que. How to become a financial planner without a degree?
Ans.While a degree in finance or a related field is common, it's possible to become a financial planner without a degree by gaining relevant work experience, pursuing certifications like CFP, and networking within the industry to secure opportunities and clients.
Que. What is the difference between a financial planner and a financial advisor?
Ans.A financial planner is a professional who helps companies and individuals create a program to meet long-term financial goals. Financial advisor is a broader term for those who helps manage your money including investments and other accounts.
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