Careers in Financial Planning and Wealth Management (2024)

FAQs

Is financial planning a good career choice? ›

Successful financial advisors offer valuable advice to their clients. In return, they get virtually unlimited earning potential, a flexible work schedule, and their choice of professional specializations.

A financial planner can be a rewarding job that helps others financially plan for their life goals. It can also be a demanding job with such responsibilities and the necessary knowledge and skills required to do it well.

One of the most fulfilling aspects of a career in wealth management is the opportunity to build meaningful relationships with clients. As a wealth manager, you will work closely with your clients to understand their financial goals, values, and priorities, and help them develop a plan to achieve their objectives.

A financial planner works with clients to help them manage their money and reach their long-term financial goals. They advise and assist clients on a variety of matters, from investing and saving for retirement to funding a college education or a new business while preserving wealth.

Prospecting. Prospecting for new clients is a fundamental but often challenging aspect of a financial advisor's daily routine. In the initial stages of your career, you'll likely find yourself dedicating a significant amount of time to networking, making phone calls, sending emails, and attending conferences.

Financial advisors in the United States typically make between $50,000 and $110,000 per year, with the average salary being around $75,000. However, this can vary based on experience, location, and the type of advisory services provided.

The external rationales that you bring up when asked "Why wealth management?" should revolve around how you enjoy coming up with creative, intricate solutions to the challenges that your clients face now and that they are liable to face in the future.

There isn't a hard-and-fast rule for how much money you “need” to get started with wealth management, but generally speaking, this is most beneficial for people with a net worth of $250,000 or more. It's also strongly recommended for business owners.

By contrast, wealth management is much less competitive to get into. If you have good sales skills, you could break in with a middling GPA (3.0 – 3.5) and without a target school or great internships. Like any sales job, they hire lots of candidates because it's impossible to know in advance who will succeed.

They charge for the advice which they provide to their clients, and the charge is most commonly based on a percentage of “assets under management” which the advisory firm and the advisor manage for each client. For financial planning, advisors usually charge based on the type of engagement they have with the client.

Why do financial planners make so much money? ›

Commissions. In this type of fee arrangement, a financial advisor makes their money from commissions. Advisors earn these fees when they recommend and sell specific financial products, such as mutual funds or annuities, to a client. These are often payable in addition to the above client fees.

A key difference between financial planners and wealth managers is that wealth managers manage literal wealth, while financial planners manage the finances of everyday clients who want to get ahead.

Knowing which career path is right for you is critical in getting the full value of a finance degree. If you want to focus your career on increasing the financial health of individuals, companies or financial institutions, a degree in financial planning or management can prepare you for success.

A financial advisor is a great career path for someone who wants to use both analytical skills and so-called soft skills. Financial advisors should have an aptitude for math and the ability to determine the best course of action for their clients.

With nearly 40% of financial advisers expected to leave the workforce in the next decade — and the Great Wealth Transfer increasing the need for competent and ethical financial advice —demand for financial planners is soaring.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.