Financial Advisor and Planner
Financial Advisor
Financial consultant is a job title that now has been replaced by financial advisor at most financial services firms.
Financial advisor (FA) and financial consultant (FC) are contemporary job titles for what used to be called a stockbroker, broker, account executive or registered representative. A variant spelling, financial adviser, also is used by some firms in the industry, and by some financial reporters and publications.
Though the term financial advisor has been in general use since the early 1990s, it is not without controversy.
Many critics still maintain that it implies adherence to the strict fiduciary standard that requires acting in the best interests of clients, rather than the less stringent suitability standard that traditionally binds brokers. Merrill Lynch, for example, was among the last of the major firms to adopt the term, entirely due to this concern on the part of its legal and compliance department, which was very conservative at the time.
More Detail on the Job
For those seeking information beyond an introductory level, this guide site includes a number of other articles that explore financial advisor careers and related issues in more detail. These articles are organized into these categories:
Traditionally, the job of a financial advisor has involved buying and selling securities (such as stocks and bonds) on behalf of clients. The change in titles outlined above is supposed to reflect the fact that, rather than being focused primarily on facilitating transactions, financial advisors really should be more like investment advisers and financial planners who take a holistic view of their clients' financial needs and goals.
Other variations in title, such as wealth management advisor, also are used, sometimes to denote a financial advisor who has additional training, certifications and/or experience.
Specialization
Some financial advisors focus on serving individual or retail clients and others concentrate on business or institutional clients. Some securities firms prefer that financial advisors specialize in this fashion, others leave it up to the individual advisors to choose whatever mix of clients they prefer. Business clients who require specialized advice and services (such as in working capital management or business loans) may prefer financial advisors with detailed knowledge in these areas.
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Financial Planner
A financial planner advises individuals on managing their personal finances, dealing with matters such as:
Many planners work independently or in small firms, though larger financial services firms either are adding financial planners to their staffs or are insisting that their financial advisors (or financial consultants) also become certified as financial planners.
Education
A bachelor's degree is the minimum educational attainment expected of a financial planner. Coursework in finance, accounting and/or economics is helpful, though not required. Strong quantitative and problem-solving skills are essential, but so are communications and sales skills. An MBA may make you an especially desirable job candidate, depending on the firm.
Certification
Legal requirements to function as a financial planner vary by state. Even in jurisdictions where it is not mandated by law, passing the exam to become a Certified Financial Planner (CFP) is highly advisable. The CFP designation increases your credibility and marketability, to potential employers and clients alike.
Duties and Responsibilities
A financial planner helps clients create personal budgets, control expenditures, set goals for saving and implement strategies for accumulating wealth.
He or she may have working relationships with financial advisors, investment managers and/or mutual fund companies, utilizing these specialists for the actual investment of their clients' funds. The job requires keeping current about developments in financial products, tax laws and strategies for personal financial management, particularly with respect to retirement plans and estates.
Success also requires sales ability, both in the acquisition of new clients and in the development of new ideas to improve the financial situation of existing clients.
source>>
Financial consultant is a job title that now has been replaced by financial advisor at most financial services firms.
Financial advisor (FA) and financial consultant (FC) are contemporary job titles for what used to be called a stockbroker, broker, account executive or registered representative. A variant spelling, financial adviser, also is used by some firms in the industry, and by some financial reporters and publications.
Though the term financial advisor has been in general use since the early 1990s, it is not without controversy.
Many critics still maintain that it implies adherence to the strict fiduciary standard that requires acting in the best interests of clients, rather than the less stringent suitability standard that traditionally binds brokers. Merrill Lynch, for example, was among the last of the major firms to adopt the term, entirely due to this concern on the part of its legal and compliance department, which was very conservative at the time.
More Detail on the Job
For those seeking information beyond an introductory level, this guide site includes a number of other articles that explore financial advisor careers and related issues in more detail. These articles are organized into these categories:
- Career Development for Financial Advisors
- Practice Development for Financial Advisors
- Client Service Issues for Financial Advisors
- Investment Products
- Investment Strategies
- Behavioral Finance
- Ideas for Small Business Clients
Traditionally, the job of a financial advisor has involved buying and selling securities (such as stocks and bonds) on behalf of clients. The change in titles outlined above is supposed to reflect the fact that, rather than being focused primarily on facilitating transactions, financial advisors really should be more like investment advisers and financial planners who take a holistic view of their clients' financial needs and goals.
Other variations in title, such as wealth management advisor, also are used, sometimes to denote a financial advisor who has additional training, certifications and/or experience.
Specialization
Some financial advisors focus on serving individual or retail clients and others concentrate on business or institutional clients. Some securities firms prefer that financial advisors specialize in this fashion, others leave it up to the individual advisors to choose whatever mix of clients they prefer. Business clients who require specialized advice and services (such as in working capital management or business loans) may prefer financial advisors with detailed knowledge in these areas.
source>>
Financial Planner
A financial planner advises individuals on managing their personal finances, dealing with matters such as:
- Saving for retirement
- Saving for college
- Saving for home or car purchase
- Budgeting
- Expenditure control
- Borrowing
- Investing
Many planners work independently or in small firms, though larger financial services firms either are adding financial planners to their staffs or are insisting that their financial advisors (or financial consultants) also become certified as financial planners.
Education
A bachelor's degree is the minimum educational attainment expected of a financial planner. Coursework in finance, accounting and/or economics is helpful, though not required. Strong quantitative and problem-solving skills are essential, but so are communications and sales skills. An MBA may make you an especially desirable job candidate, depending on the firm.
Certification
Legal requirements to function as a financial planner vary by state. Even in jurisdictions where it is not mandated by law, passing the exam to become a Certified Financial Planner (CFP) is highly advisable. The CFP designation increases your credibility and marketability, to potential employers and clients alike.
Duties and Responsibilities
A financial planner helps clients create personal budgets, control expenditures, set goals for saving and implement strategies for accumulating wealth.
He or she may have working relationships with financial advisors, investment managers and/or mutual fund companies, utilizing these specialists for the actual investment of their clients' funds. The job requires keeping current about developments in financial products, tax laws and strategies for personal financial management, particularly with respect to retirement plans and estates.
Success also requires sales ability, both in the acquisition of new clients and in the development of new ideas to improve the financial situation of existing clients.
source>>
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