Advice for Emerging Financial Planners
So, you want to be a CERTIFIED FINANCIAL PLANNER™. Whether you are preparing to graduate from college or making a career change, it's normal to wonder, "What's next?" While many decisions lay ahead, now is the time to think about your options and the actions you can take to better define your path.
Networking is key. Start within your industry. Many people are very uncomfortable reaching out to individuals they don't know and/or walking up to a stranger at an event and introducing themselves. It helps if you practice envisioning yourself doing it and saying the words out loud. Like most things, the more you do it the easier it becomes. You need to make the first move, don't stand on the sidelines waiting for someone to come to you.
If you are attending a conference or a business gathering, another tactic to help make networking easier is to see if you can get an attendees list ahead of time and identify the people you would like to meet. Research them to find something of interest you can work into your conversation.
Find a mentor. Based on your situation, this can be accomplished formally or informally. If done informally, you need to make the effort to keep in touch and stay connected. A mentor serves as an excellent sounding board for navigating your path and learning more about the profession. If you decide a more formal approach works better, commit to a structured schedule for your interaction, be prepared, and do not waste their time. Whether you select a formal or informal arrangement, a mentorship presents a great opportunity to ask questions, seek advice and learn from their experience.
Do I want to work at a large firm or a small firm? This is a common question and one you can't answer until you take a closer look at both working environments. Ideally, if you can get an internship or shadow someone from the company of interest, that experience provides first-hand exposure to how they operate and what the day-to-day activities encompass. Your networking connections and mentor(s) are other good resources for information and advice in deciding which size company is right for you to thrive.
What designations should I get and when? This question looms large for aspiring CERTIFIED FINANCIAL PLANNERS™. The CFP® designation is necessary and requires the completion of four areas for certification: education, exam, experience, and ethics. Depending on the path you take, many people complete the CFP® certification while they are working at a financial planning firm. Passing the exam is usually the first big hurdle and often the most stressful when getting started in the profession.
Other designations, certifications, and/or licenses financial planners find helpful in their practice include the Series 65, the IRS Enrolled Agent, Chartered Life Underwriter, and the Accredited Estate Planner. These additional qualifications increase your knowledge and expertise to bring more value to the services you can offer a client.
Be a lifelong learner. The financial industry consistently changes. The tax code gets updated. The Securities and Exchange Commission makes new rulings. The Federal Reserve influences the stock market by adjusting the interest rate up or down. The point is, as a financial planner you have to stay vigilant in keeping up with new information coming out from the sources that impact what you say to and do for your clients every day.
Being a CERTIFIED FINANCIAL PLANNER™ is an exciting and very rewarding career choice. As a CFP®, you have the opportunity to change people's lives and help make their dreams come true. Your knowledge and expertise guide clients to live the life they envision. There's no doubt, it's a lot of work, but it's worth it!