How to become a financial advisor?

How Do I Become an Independent Financial Advisor?

• Answer:

  If you are thinking of starting a career as an independent financial adviser (IFA), you'll want to be aware of both the promise and problems associated with this profession. Independent financial advisers enjoy the ability to set their own hours, build their own clients and make as much earnings as their imagination and work ethic will allow. However, the path to success is not easy and there are steps to take along the way that you should consider as you contemplate your next career move. Becoming an IFA According to the Association of Independent Financial Advisers (AIFA), the role of an IFA is to assist their clients in achieving their financial goals. As an IFA, you can expect to work closely with your clients, understanding their financial objectives and how obtaining those goals will help them, and reviewing an individual's portfolio with an eye toward making financial recommendations that will help put their personal finances on the path to success. Most IFAs run their own business, the AIFA reports, and have the luxury of choosing their own clients and managing their own time. While many IFAs start as generalists, eventually they might find a specialty such as taxes, pensions, retirement or investment funds. Part of the American dream is being your own boss but, before finding success as an IFA, you'll need to first put in some preparation and perspiration. Paperwork and CV Before starting out on your own in this competitive field, you'll want to prepare yourself with the proper licensing, certification and degrees. Though not mandatory, IFAs are recommended to earn degrees in finance or accounting. Certifications and licenses not only look good on your curriculum vitae but will prepare you with the skills you need to be the best at your work. Several certification examples include chartered financial analyst, certified financial planner, or a financial investment adviser, if you are planning on specializing in mutual funds, stocks or bonds. While obtaining education and training, it is also important to build up your CV. Perhaps you'll spend time preparing for your career as an IFA working in finance for other firms, be it as a summer intern if you are just out of college, or as a paid adviser. You'll want to attend seminars, web courses or perhaps volunteer in your community as a treasurer or other position where you are handling funds. You'll want to round out your training and work experience so when you are ready to call on clients, your CV will work as an effective calling card. Building Clients The excitement and allure of becoming an IFA is also one of the main hurdles for your career success. Yes, you get to call your own shots, build your own business, and craft your own schedule, but the stress and anxiety of making a living all on your own can be burdensome. Be prepared, at the beginning, to be consumed by your work. You'll be spending lunches, dinners, evenings, and all the time in between building your base of clients. It is a good idea to network with past colleagues, friends, associates, neighbors, even family. You'll probably start out with smaller clients. In time, and if you are effective with your clients' funds, you'll be able to land those high-profile accounts that lead to long-term success. Be aware, though, that many IFAs never bag that large trophy, and you'll need to put in the time and work to become successful.