A career in finance may trigger a single vision of constant number crunching. Still, contrary to popular belief, this industry offers a window of opportunities that encompass a range of skills. Take financial advisors, for example. These business professionals spend just as much time, if not more, building relationships, mentoring and solving problems as they do processing numbers and equations.
“At the end of the day, a great financial advisor is a problem-solver,” said Patrick Brewer, founder and CEO of Model FA. “If you don’t enjoy solving problems or aren’t good at doing it, you will be missing a key ingredient for building long-term trust and a successful financial advisory practice.”
Brewer points out that today, a successful financial advisor must possess more than the apparent knowledge of finance. Here are five things you should know before pursuing a career as a financial advisor.
- It is one of the best business jobs. This statement is especially notable, considering the position didn’t exist decades ago. James Kinney, the founder of Financial Pathways and a certified financial planner, said that one was either a stockbroker, community banker or insurance salesperson. Today, the financial advisor career sits at four on U.S. News and World Report’s best business jobs list. Over the years, this role has evolved from merely a sales and product-driven space to one that focuses on listening to clients, explaining complex ideas in layman’s terms and building trust. These skills are beneficial in helping clients with budgets, investments and plans for life’s surprises.
The financial advisor career can also be lucrative. The median salary in 2019 was $87,850, with the best 25% bringing in an average of $154,480. This average, of course, can vary depending on the place of employment.
- Know the Difference between an MBA in Finance and a Master of Science in Finance and Financial Services. Students interested in a career as a financial advisor must understand the difference between the degree programs and their scope. The latter would primarily focus on the field of finance. However, an MBA in finance typically provides students with a solid foundation in finance knowledge and the leadership and management skills needed to guide individuals or organizations.
William Paterson University’s Master of Business Administration with a concentration in Finance online, for example, offers a core curriculum that cultivates an understanding of financial operations, global economics, business analytics, innovation and corporate sustainability, and persuasion and negotiation strategies.
Additionally, WP’s Master of Science in Finance and Financial Services online program helps students identify, assess and analyze financial situations, as well as use relevant tools and strategies to solve financial problems. Its Financial Services track helps students navigate personal cash flow, education saving, risk management, investment, tax and estate tax issues for their clients. The subject matter in this program covers the content areas of comprehensive financial planning, which is one of the fastest-growing areas in financial services.
- The field is versatile. Becoming a financial advisor does not necessarily mean you’re committing to the same role and responsibilities for life. There are several types of financial advisors, from investment advisors to rainmaker advisors who focus on business development or comprehensive financial planners who evaluate their clients’ financial situation holistically. This versatility offers an opportunity for professionals of varying backgrounds to use their unique experiences, interests and expertise to their business advantage.
- An entrepreneurial spirit is required. Financial advisors must be self-starters, whether they work for a large broker or on their own. They must market their services, and quite a bit of sales experience is required. Michael Purpura, president of Wealth Management at D.A. Davidson & Co., explained that this profession is one where “you need to rely heavily upon your own motivation.” Ultimately, this is a career where you decide your successes and your clients’ successes.
- Some additional credentials could prove beneficial. Certifications can help differentiate yourself and boost credibility. The Certified Financial Planner (CFP) is the gold standard in the financial planning industry. The Financial Services track is registered with the CFP Board, and it will prepare students to be eligible to sit for the CFP exam upon graduation. This additional investment in yourself is not difficult, and the cost ranges from $1,000 to $3,000. There are also many scholarships available that could allow you to get study material and take the exam without paying anything out of pocket. There are plenty of other credentials that specialize in areas of financial advice but the CFP mark is generally where you want to start. Other credentials whose names indicate their areas of specialization include Certified Divorce Financial Analyst (CDFA), Certified Investment Management Analyst (CIMA), Certified Private Wealth Advisor (CPWA) and many more. Increasingly, more and more organizations are demanding their advisors obtain the CFP mark as a condition of employment.
A successful career as a financial advisor requires more than a knowledge of numbers. It also takes a curious mind, ongoing interaction with people, continuous learning, a strong work ethic and perhaps, most importantly, a desire to help your clients reach their goals. Prospective students considering a career as a financial advisor should do the diligence of assessing these aspects of the job.
Learn more about William Paterson University’s MBA with a concentration in Finance and M.S. in Finance and Financial Services online programs.
