While working as an intern for a Certified Financial Planner™ practitioner, Angie Herbers was called into a meeting with a widow. Among the client's concerns was the potential impact of the family's unstable financial picture on her daughter's dream of attending college.
Asked to research the matter, Herbers generated a list of scholarship options and helped present it to the woman and her daughter. Two months later, the mother called to say her daughter was headed to the University of South Carolina with a scholarship in hand.
The client's gratitude reinforced Herbers' decision to enter the financial planning profession, an increasingly popular option for students seeking a career based on helping people live their dreams.
What is financial planning?
A relatively young profession, financial planning emerged as a unique discipline about 30 years ago. Financial planning is the process of determining how an individual can meet life goals through the proper management of his or her financial resources. A financial planner takes a "big picture" view of a client's financial situation and makes recommendations based on the client's needs in areas such as budgeting and saving, taxes, investments, insurance, and retirement planning.
Working as a financial planner
Recognizing financial planning's occupational benefits, the 2001 Jobs Rated Almanac ranked financial planning as the top career choice in the country. The survey considered a number of factors while ranking hundreds of jobs and concluded that financial planners enjoy relatively low stress, have a high earning potential and enjoy a high degree of workplace autonomy. The personal satisfaction element cannot be underestimated.
"Frequently, I find that people are just overwhelmed and need direction, so it's my job to listen, understand their situation and offer some options that will help them," said Jesse Bell, a recent graduate. "It's fulfilling to be able to help people do better, and it's not just about their finances. It's about blending the financial side with the other sides of clients' lives so that they can achieve their goals."
CFP® Certification: How to get it and why
The Certified Financial Planner™ certification was created in 1972 to meet the professional development needs of those seeking to become financial planners. The CFP® certification helps to distinguish those serious about a career in financial planning. Certification requirements include initial and ongoing education, examination, experience and ethics components.
There are more than 200 programs registered with CFP Board that cover the 101-topic curriculum that represents the body of knowledge for financial planning. In addition to the educational requirements, candidates for CFP certification must pass the10-hour, two-day CFP® Certification Examination, verify at least three years of full-time relevant experience and agree to abide by rigorous ethical and practice standards. Once certified, individuals must meet 30 hours of continuing education every two years.
Future career prospects
Particularly within the last decade, demand for financial planners has risen as individuals have had to assume more responsibility for their own retirement and other financial decisions.
"Over the next 15 to 20 years, the profession should experience significant growth, and practitioners should see increased income potential," said Bell, vice president of Bell Financial Services in Ishpeming, Michigan.
But for those who want big firm experience, the opportunities are plentiful and growing fast. Firms such as American Express Financial Advisors, Merrill Lynch and AXA Advisors actively recruit CFP certificants to staff their expanding advisory divisions.
To further research the profession, visit CFP Board's web site at www.CFP-Board.org.
Steps to achieving CFP® certification
- Complete the education requirement
- Pass the CFP® Certification Examination
- Meet the experience requirement
- Agree to adhere to CFP Board's Code of Ethics and pass background check
- Pay certification fees
- Receive authorization to use the CFP certification marks
Benefits of being a CFP® practitioner
- Enhanced career opportunities
- Personal satisfaction in knowing you have earned the profession's highest standard
- Satisfied clients who appreciate the comprehensive approach financial planning
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Educational opportunities
The Certified Financial Planning Board notes that there are 57 undergraduate degree programs and 34 graduate degree programs that fulfill the educational requirements for the CFP® certification. Degree programs are usually housed in schools of business, consumer, or family science departments.
Many hiring firms offer help to new graduates who want to obtain their certification, according to the CFP Board.
Starting salary range
It's hard to pinpoint starting salary in this field. Many entrants begin by selling commissioned-based financial service products, so salary is determined by sales ability. However, there are a growing number of positions for these graduates in other departments of financial planning firms.
Excerpts from Plan Your Course to a Rewarding Career. Copyright © 2002 Certified Financial Planner Board of Standards Inc.