A Look at the Responsibility and Qualifications of a Financial Planner

Robert Wolfe
3 min readJul 18, 2022

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A financial planner, also known as a financial advisor, helps or advises individuals or clients on how to plan their finances and achieve their financial goals. Financial advisors plan based on the income and expenditure of their clients, ensuring that there is no misuse of funds or missed investment opportunities.

You often find financial planners working or employed by a consultancy, insurance, or investment firm. However, they can work independently. One unchanging thing is that they have a very similar job description, irrespective of the business framework or setting in which they operate.

A financial advisor works with different kinds of clients like individuals, businesses, and families. Relevant information they require includes debt obligation, year income, financial aim, and insurance plan. Before they fully take on a client, they often conduct an interview to understand the situation better. They use the information they get from the interview to design and create a realistic plan for their clients.

Debt administration, savings goals and methods, as well as individual and family budgeting are just a few of the personal finance issues that financial planners cover with their clients. Additionally, they go through investing techniques, estate planning ideas, insurance protection planning, and strategies for saving for and withdrawing from retirement. Occasionally, they handle tax returns filings and offer guidance on tax minimization, meaning they advise clients on ways to reduce their tax liability.

When dealing with a firm, corporation, or an institutional customer, financial planners examine and offer recommendations on issues like income, anticipated sales, debt handling, or employee benefits. Financial advisors may significantly influence a client’s economic prospects since each of these factors contributes to the overall financial health of people or corporations.

So, what are the important qualifications a financial planner must-have? Although a bachelor of science is advised, a financial advising job doesn’t require additional specialized graduate degrees. However, a person who wishes to start a financial advisory service may find it valuable to have a graduate-level education, such as an MBA, that is, a master’s in business administration, with an emphasis on areas that have to do with finance or commerce.

However, to advise and carry out particular activities involving commodities or insurance, financial advisors also need to possess a number of licenses. The Financial Industry Regulatory Authority (FINRA) Series 7 exam, which is required for securities licenses, tests candidates’ understanding of the securities market and some investment-related activities, such as the sale of municipal securities and bonds, government assets, variable annuities, and options.

Additionally, the North American Securities Administrators Association (NASAA) test for the FINRA Series 66 license could be necessary. To stay in a great position with this regulating organization, you must keep studying because each FINRA certification includes continuing learning obligations.

However, it doesn’t hurt to have more certifications. For instance, the Certified Financial Planner (CFP) qualification has widespread respect in the financial sector and among potential clients. Earning the CFP certification requires completing a rigorous six-hour test and ongoing education. This certification would open you to a wider scope of clients, from large to small corporations.

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Robert Wolfe
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Robert Wolfe — Wealth Management Executive