Financial Planner How to Become a Financial Planner

Kirby Spencer McDonald is a certified wealth strategist with over four decades of experience in financial advising. A resident of Omaha, Nebraska, Kirby McDonald is a managing partner/founder of Illuminate Financial.

A financial planner and financial advisor are two different professions. Even though they have similarities and are often confused, a financial advisor helps people manage their money, while a financial planner develops personalized financial plans for their clients. To become a financial planner, you must first acquire a bachelor’s degree in either finance or economics, although In some cases, accounting and general business degrees will suffice.

After graduating with a bachelor’s degree, it is advised that you pursue entry-level financial planner jobs that will help with work experience and training. However, there are several financial planning licenses and certifications that narrow down your area of specialization in financial planning. The most popular certification for financial planners is the certified financial planner (CFP) designation, but the chartered financial analyst (CFA) certification places a heavier focus on calculations.

While some financial planners must obtain state licenses or register with the Securities and Exchange Commission (SEC), this applies to most professionals who provide specific investment advice and directly buy or sell insurance policies, stocks, or bonds that may need additional credentials.

Lastly, don’t stop with a bachelor’s degree. You can pursue higher education that helps open the door to advanced career opportunities, management positions, and higher salaries that come with a master’s degree in business administration or finance.