Being a financial advisor has its pros and cons. Among the downsides: long working hours and potential challenges growing your business. But in this field, the pros seem to outweigh the cons; this is especially true if you’re ambitious, have a passion for personal finance and are keen on making really good money.
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On average, financial advisors in the U.S. make $72,574 a year, according to Indeed. But this is only the average; you could pull in much more. According to Indeed, the high-end salary for financial advisors is $146,228. Given that you can earn six figures a year as a financial advisor, you may be wondering how to become one.
The journey to becoming a financial advisor isn’t easy, but with dedication and determination, you can move into this field and find yourself with vast earning potential.
Education in Finance and a Bachelor’s Degree Are Usually Required
There are specific education and certification requirements for becoming a financial advisor.
“While the requirements to become a financial advisor can vary greatly depending on the country, most advisors have a background in finance, economics or business,” said Eric Croak, CFP, president at Croak Capital.
“The most common educational requirement to become a financial advisor is a bachelor’s degree in finance or a similar field.”
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Get Some Experience in the Financial Industry
Though not a requirement, it’s incredibly valuable to have experience in the financial industry at large, before embarking on a career as a financial advisor. This gives you a competitive edge.
“Most financial advisors start their careers as investment bankers or accountants,” Croak said. “As a financial advisor, you’ll need to be familiar with various federal and state laws.”
Take Necessary Exams and Any Continuing Education Courses
To become a financial advisor, you have to pass a few key exams to acquire the necessary licenses to practice in your state. Generally, you’ll need the following licenses:
Series 6 license
Series 7 license
Series 63 license
Series 65 license
Series 3 license
“In some places, you might also need to take continuing education courses,” Croak said.
Seek Out an Internship at a Financial Advisory Firm
Professional networking and hands-on learning are essential to success in any career. If you can afford to do it, consider an internship at a financial advisory firm to help you build relationships with established financial experts.
“Banks, insurance companies and investment advisors often offer internships,” Croak said. “An internship is an excellent way to figure out if this career is the right fit for you and whether you’re genuinely interested in the subject matter.”
You Can Work For Consumers or Companies
Once you’re up and running as a financial advisor in terms of passing all your exams and getting licensed in your state, you’ll want to figure out which type of financial advisor you’ll be. For example, will you serve consumers as a sole proprietor, or will you work for a big company?
“Many people think of financial advisors as sole proprietors who work with individuals and families, but this is just one career option,” Croak said. “You can also work for a large company, where you’d analyze market data and crunch numbers to develop a solid financial strategy for your employers.”
If You Want To Get Into the Six-Figure Club, You Need To Be in Control
If you want to be at the higher end in terms of earnings as a financial advisor, it’s important to be totally in charge of your career. You’ll need grit, flexibility and the ability to handle stress without wavering.
“To become a successful financial advisor with six-figure earnings, you need to have a sense of control,” Croak said. “Six-figure earners know they are the captains of their own ships. This is especially true for financial advisors because you typically don’t have a boss in the traditional sense. You set your own hours and vacation schedule.”
Double Down on Self-Discipline
One of the perks of being a financial advisor who works as a sole proprietor is that you can set your own hours and make your own schedule. But this can be a danger if you’re not incredibly disciplined.
“While having a career with so much freedom is great, it can be a drawback for those without self-discipline,” Croak said. “High-earning financial advisors are self-starters. You understand that no one else will save you, and if you want to earn big, you need to create a plan and get to work.”
Or, Look Into Becoming a Financial Planner
You may be wondering, “What is the difference between a financial advisor and a financial planner?” From there you may ask, “Which career path is better for me?”
To answer the first question: A financial advisor helps clients with a wide range of financial services including comprehensive financial planning, tax guidance, investment management, budgeting and insurance strategies.
A financial planner has a more limited scope. They only do the comprehensive financial planning part —which is still a lot. They specialize in analyzing your spending habits, laying out investment strategies (both short term and long term) and building out a plan for you to meet your retirement goals.
Jay Zigmont, PhD, MBA, a certified financial planner at Childfree Wealth, suggested looking into becoming a certified financial planner. These professionals could pull in even more money than financial advisors —a median of $250,000 a year if you have more than 20 years of experience in the field, according to CFP Board.
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This article originally appeared on GOBankingRates.com: Financial Advisors Can Make Six Figures a Year: Here’s How To Become One
