While searching through professions related to business majors, one particular career was repeatedly appearing on the web. A career that represents much of what comes to mind when thinking of finance majors.
On December 12th 1969, thirteen individuals met at the Chicago O’Hare Airport to discuss the formation of a new occupation. Loren Dunton summoned this meeting that would change the business industry forever. These intellectually advanced individuals developed The Society for Financial Counseling. This was a membership association that other individuals could join to gain knowledge and aid on managing their own money, as well as others money.
Financial advisors, also known as, financial planners, asses the financial needs of their clients and from there, help them to invest in stock,bonds, etc. in the most beneficial way possible. Financial advisors must have extensive knowledge, and know the marketplace inside and out in order to be successful in their roles. Financial advisors often act as the middleman when handing their client’s investments by negotiating with stockbrokers. In addition to helping clients establish a diverse investment portfolio, they also often aid clients in purchasing a home and their children’s education. Advisors also guide their clients to success by providing them with monetary advice regarding their insurance and retirement plans.
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As an entry level financial advisor it is expected to be working over 40 hour weeks. Though most of this time will be spent observing and examining surroundings to better understand the inner working of the profession, the most time will be spent networking. One of the most difficult aspect of staring as an advisor is developing a strong clientele to work with. While some advisors may be lucky if hired by a larger firm, lose who aren’t are often left with a client base of zero. It is important that financial advisors brand their name by outreaching and developing connections. However, this process is timely. This is where the 40+ hour weeks come in. While new advisors are networking, they must also be keeping themselves updated on what is happening with the market. They must set both of these priorities at the top of their list or their career will likely follow a downward slope.
On the other hand, this high stress work experience will most likely not last forever. Once financial analysts have developed a strong client base and name they are able to focus solely on their clients best interests. With increased experience in this field come comfort and ease. Only 30% of junior and senior advisors report consistently working over 40 hour weeks. At this time in their career, these advisors will often attend meetings and conferences in the evening or weekends to meet with both prospective and existing clients. During the day, advisors will be checking the market, doing administrative chores, and making calls. National and international ravel does play a large role in this profession as, especially larger advisers, clients live all over the globe. As business is an international industry, advisors must understand that flights to Hong Kong may be more often than they would expect.
As in most any occupation, the more time and experience spent working the higher salary is usually associated. That being said, the average starting salary for an entry level financial advisor is $52,286. After an advisor works for two to three years that salary greatly increases to a median annual salary of $90,530. While these numbers may seem great, there is the other end of the spectrum to take in account for. The lowest-paid earning financial advisor earns less than $41,160.
As the number of jobs of financial advisors raise, so does the number of women in this field. The Meetoo movement has led to growing awareness of gender issues in the workplace. This increases the need for the equality of opportunities and pay for woman. This is represented as in 2014 woman made up just 16% of financial advisors, and now in 2018 that percentage has risen to 35%.
As well as possessing a deep analytic ability, financial advisors must have much more in terms of their personal skills. Successful financial advisors must have educational curiosity, meaning that they must always seek for improvement and innovative strategies. They must also have incredible interpersonal skills, as this is essential to establishing meaningful relationships, and building their clientele. This also includes having the ability to put the interests of their clients first and their own interest second. Lastly it is imperative that advisors must always be able to thrive on challenge in order to constantly be fueled for what may lie ahead.
The job outlook for financial advisors is strong as it is projected to grow 15% from 2016 to 2026 which is must faster than the average for all occupations. A factor that could negatively impact this growth is the rise in AI computer financial advising services.
Individually, there is unlimited potential in this occupation, because as you grow in the industry your clients simply become of higher net worth, which leads to an unlimited salary potential. In addition to that advantage, another is that being a financial advisor is one of the most rewarding jobs as you are offering relevant and meaningful advice that will truly be applied to others lives. Another advantage is that the work schedule is very flexible once an advisor establishes a strong client base.
While there are many advantages to this career, there are of course disadvantages as well. One disadvantage of being a financial advisor is that this is a high stress industry. Advisors are constantly managing the emotions of their clients during downturns in the market. Another disadvantage is that there are numerous compliance requirements and the process to obtain all the required and recommended licenses can be very lengthy and costly. Lastly, many firms are continuously prospecting so they often have sales quotas to be met each month. For new advisers with a small client base this can be very challenging to achieve.
Other occupations that are very closely related to a Financial Advisor are Budget Analysts, Financial Analysts, Financial Managers, insurance Sales Agents, and Stockbrokers. Stockbrokers usually work for and with a brokerage firm. They buy, sell, and trade stocks as well as other securities for both retail and institutional clients. They sell the stocks through a stock exchange, such as the New York Stock Exchange, in return for a commission.
The road to becoming a Financial Advisor is challenging, but it is not impossible. Advisors must have at least a bachelor’s degree (usually a four year degree), while a master’s degree and certification can improve the chances for advancement in the field. One must also graduate from their college of university’s business school, with a business related major, to be competitive for recruitment coming directly out of college. Two majors that can set up a student to becoming a successful financial advisor is accounting and finance, which will take on average four years to complete. These majors teach students the basic skills of how to develop a client network, and how to diversify client’s investment portfolios to the best of their benefit. In addition to one of these majors, minors in more specific areas of business can add value to an individual.
Obtaining a graduate degree can do nothing but advance an advisor further in the industry. However, it is important to take into account the timing and cost that a graduate degree with cost. It is best to communicate with ones firm to see if they have a preference in where and when an advisor receives their graduate degree. This way, advisors can also discover if their firm would be willing or able to send them to graduate school for increased qualifications as a professional.
Internships while not advertised as “required” will be crucial to receiving any competitive job as an advisor. Internships help prepare potential advisors as they allow them to gain experience and establish connections in this field of work. Internships also will help prospering individuals to gain and improve on their interpersonal skills in a professional setting. Before becoming a certified Financial Advisor, additional training is most often required. New advisors work under the supervision of senior advisors to learn how to properly perform their duties, this training period usually lasts more than a year. If Financial Advisors are directly buying and selling stocks, most often the case, they need multiple licenses that must be registered both through their firm as well as the Securities and Exchange Commision.
Overall, I personally choose this career, as a financial planner, because it is a fast paced work environment where I can thrive on challenges brought forth by myself and my co workers. I can also connect myself with people from all around the world with differing background, and values, this will give me a more worldly view on life.
After completing my research on being a Financial Advisor I am still very interested in making this career my career objective, because my advice will make a true and visible impact on people’s lives. However, during my research I did discover the similar occupation of a Financial Analyst which intrigues me. This related career interests me because although the duties are almost identical to a Financial Advisor, Financial Analysts mainly handle the management of large companies and corporations money. I find that I may like that more because in that type of setting it would allow me to collaborate with more people at the same time.
I can see at this moment that becoming a Financial Advisor or Analyst would allow me to be the person that I want to be. I do want to work hard and have a crazy, hectic life coming out of college. I am excited and ready for a fast paced, engaging work environment. Then, after a few years I would want to settle down with a family. This job would 100% support this vision of mine because as I advance in the field and develop a strong clientele, the stress level heavily decreases, I gain more flexibility in hours, and I gain a higher salary.
