Top Jobs: Personal Financial Advisor
|
Published December 20, 2009 Carolyn McClanahan could have continued her career as a successful emergency room physician. But in 2000, she and her husband were looking for a certified financial planner (CFP) and couldn’t find one, so she took matters into her own hands. “I went back to school for fun and just fell in love with it.” By 2004, McClanahan had opened her own financial planning firm in Jacksonville, Fla.“This is a big second career for a lot of people,” she says. That includes Erika Safran, CFP, of Denver, who worked as a successful contract engineer in New York before entering the financial planning industry 20 years ago. “I wanted a career in finance, but I wanted to deal with individuals and directly make a personal difference in their lives,” says Safran. Personal Connection It’s working one-on-one with clients that appeals to many personal financial planners and makes this financial career unique. Financial analysts do similar work – gathering and analyzing financial, investment and tax information – but personal financial advisors consult with people, not companies. “I genuinely like people and enjoy stepping into my clients’ lives,” says Safran. Cary Carbonaro, MBA, CFP, a partner in a firm in Fairlawn, N.J., calls her client relationships “as strong as family.” Helping clients is not always easy. Clients bring to the table varied life stages and situations and personal financial advisors must work to help them weather economic storms. “During the financial crisis, I communicated with clients nonstop and I still didn’t feel it was enough,” says Carbonaro. “I wanted to take away the pain.” Great Communicator Communicating is an important skill for financial planners. They must be good listeners and be willing to ask difficult questions about clients’ lives and goals. “You have to ask about things like spending and maybe tell clients they have to cut their spending and where,” McClanahan says. Marketing also requires top-flight communication skills. Many personal financial advisors start their own firms and must develop and maintain a client base. This involves sales calls, presentations and other marketing efforts. Those who enter the profession as a second career may find it easier to market to professionals in their former field. For example, physicians are McClanahan’s niche market, since she knows their world. “I know planners who were airline pilots who have mostly pilots as clients; teachers target teachers, etc.,” she says. Getting Started To become a certified financial planner, the industry standard, requires a bachelor’s degree and at least three years of relevant experience. “The CFP designation confirms your education and experience and shows you will agree to a code of ethics,” says Safran. Course work in business, accounting and economics helps. Working as a personal financial advisor requires a level of maturity; it’s a not the sort of job you enter right out of college, says McClanahan. Work in the financial services field to gain the experience. Carbonaro suggests landing an internship and joining associations such as the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors, or NAPFA. © CTW Features Personal Financial Advisor Pay: Personal financial advisors who work for other firms earned an average salary of about $66,000 in 2006, according to the U.S. Bureau of Labor Statistics. But self-employed financial planners can earn much more, depending on how hard they work. The FPA completed a salary survey in 2009 and reported that some solo practitioners make about $111,000 a year. Outlook: These jobs are in demand and the field is growing faster than the national average. Skills: Naturally, math aptitude and problem-solving skills are essential. But excellent communication skills are essential. Up Side: Helping people reach their goals, getting to know clients. Downside: Marketing to add clients, helping clients even when the economy is bad or uncertain. - Written By Teresa Odle |