Financial advisors create impact.
But they do more than just tell people what to do with their money. Their role centers around helping clients set financial goals and then develop a comprehensive plan to reach them.
The success of financial advisors is heavily dependent on the ability to deliver for clients—and that includes being thorough, patient, and explanatory.
“Many people believe that the role of an advisor is all about the numbers, but it's equally about relationships as it is about finances,” explains Sarah Vita, chief talent officer at Equitable Advisors. She adds that the best advisors are able to build a deep understanding of their clients and their goals.
Beyond making a mark in people’s lives, the financial advising career is rewarding in terms of job security and high salary potential. Data from the U.S. Bureau of Labor Statistics shows that the median pay for financial advisors is $99,580—with an expected 17% increase in the number of jobs over the next decade.
How much financial advisors make
Table above represents how much you can earn based on data from the BLS.*
So, if you enjoy finances and numbers and get excited about helping others on their journey, then here are 4 steps to follow to become a financial advisor.
1. Seek a bachelor’s degree
Obtaining a bachelor’s degree is the baseline for where you should begin on your educational journey. Majoring in fields such as business, economics, or a related field will help you gain foundational knowledge of finance, but financial advisors can ultimately be from any field.
Several universities have programs specifically built for those interested in pursuing a career in financial advising by equipping students with both the academic knowledge and interpersonal skills necessary for success. Programs also explicitly teach the topics of importance for financial advising certifications and licensures. Arizona State University, for example, offers a bachelor’s in financial planning and is a CFP board-registered program.
2. Earn real-world experience
The best way to get ahead in financial advising and gain the skills that you need to succeed is by hitting the ground running—and you can obtain real-world experiences in more places than you may think. You can start by taking the knowledge obtained in your coursework and applying it to your daily life—whether that is within your own financial situation or by helping friends and family.
During or after your undergraduate experience, obtaining an internship can be one of the best ways to get real-world training. Be sure to start looking for opportunities early because top financial firms in particular may have application cycles that open several months before the internship period.
The internship experience itself will give you a unique glimpse into the world of financial advising and help you figure out exactly which types of jobs you may want to consider in the future. An internship will also allow you to obtain mentors and expand your professional network—something that will be invaluable when it comes to trying to secure a job.
3. Enhance your skills with certifications and designations
Because anyone can call themselves a financial advisor, professionals have sought out certifications to not only prove their skills but also potentially more acutely define their career.
Pursue the Certified Financial Planner® certification
Many financial advisors seek the industry-standard certification, the Certified Financial Planner (CFP).
This certification is a prestigious professional designation awarded by the Certified Financial Planner Board of Standards, Inc. in the United States. It is widely recognized as the gold standard in the financial planning industry, representing a high level of competency, ethics, and professionalism.
Achieving this designation can not only help you secure clients’ trust but also help land lucrative jobs in the finance world.
Research from the CFP Board claims that CFP Professionals earn 10% more than other financial planners and tend to have higher job satisfaction. For those with the CFP certification—the median compensation is about $192,000, according to the CFP Board.
How much CFP Professionals can make according to numbers from the CFP board.**
How to get CFP-certified:
- Education: Obtain a bachelor’s degree and complete financial planning coursework through a CFP Board Registered Program
- Experience: 4,000–6,000 hours of verified professional or apprenticeship experience
- Exam: Sit and pass the CFP exam, a 6-hour, 170-question multiple-choice test ($925/attempt)
- Ethics: Sign an ethics commitment and pass a background check
Once all of these steps are followed, the learning does not stop. CFP® professionals are also required to complete 30 hours of approved continuing education in each two-year reporting period. At least two hours must focus on ethics, and the remaining hours must focus on one of CFP’s principal topics:
- Professional conduct and regulation
- General principles of financial planning
- Risk management and insurance planning
- Investment planning
- Tax planning
- Retirement savings and income planning
- Estate planning
- Psychology of financial planning
Charter Financial Analyst
Another well-known designation for investment management professionals—to prove their skills as well as to network—is the Charter Financial Analyst (CFA).
Chris Wiese, managing director of education at the CFA Institute says charterholders tend to pursue careers as portfolio managers, equity analysts, private wealth managers, and investment strategists.
“The CFA Program equips advisors with real-world skills necessary to succeed in today’s investment industry, along with a strong ethical underpinning,” Wiese says. “Whether you’re a current finance professional, a student, or looking to switch your career, the CFA Program offers a way to help advance your career.”
To become a CFA professional, individuals must pass a series of three examinations, provide professional references, and have at least 36 months of relevant work experience.
Financial advising has been deemed by some as an alphabet soup since there are many other designations to prove specific skills and obtain domain authority. Some include Certified Fund Specialist (CFS), Certified Private Wealth Advisor (CPWA), and Chartered Financial Consultant (ChFC). However, by and large, the CFP is the most popular—alongside the CFA or even CPA.
Beyond the designations, simply engaging in professional development will go a long way in helping you be the best financial advisor you can be and indicate to employers that you are constantly looking to innovate and grow.
“Be coachable, and be curious,” Vita encourages.
4. Obtain FINRA securities licenses
To become a licensed financial advisor in one’s state, Vita encourages individuals to research one’s state requirements to become a financial advisor. This typically includes taking the Financial Industry Regulatory Authority (FINRA) series 65 or the series 7 and 66 examinations.
Vita says that at Equitable Advisors and many other firms, passing the series 7 and 66 examinations is ultimately required for certain roles. However, many companies will sponsor one’s pursuit of FINRA examinations and help with navigating state licensing needs.
Because the exact requirements may depend on the role one is seeking as well as the company and state, it can be best practice to explore the jobs that interest you the most—and then pursue any certification requirements they recommend.
No matter your age or experience, meeting proper state requirements is a necessary, but achievable part of the process. “We see people who have worked in a corporate profession for a couple of years but want to grow their career on their own terms—anyone from accountants to attorneys to business owners to former professional athletes,” Vita says. ”It really is a broad scope of who is successful.”
Series 65: Uniform Investment Adviser Law Exam
- Number of items: 130
- Format: Multiple choice
- Duration: 3 hours
- Passing score: 92/130
- Cost: $187
Series 7: General Securities Representative Exam
- Number of items: 125
- Format: Multiple choice
- Duration: 3 hours, 45 minutes
- Passing score: 72/125
- Cost: $300
Series 66: Uniform Combined State Law Exam
- Number of items: 100
- Format: Multiple choice
- Duration: 2 hours, 30 minutes
- Passing score: 73/100
- Cost: $177
The takeaway
Working as a financial advisor can be a highly rewarding career, both in terms of job opportunities and financial compensation, as well as the positive impact you can have on people's lives.
“If you’re seeking a career as an advisor, my biggest piece of advice is to be passionate about helping people and to work for a company that has a strong mission and focuses on putting clients first,” says Cassandra Rupp, a CFP and senior wealth advisor at Vanguard.
Many people turn to financial advisors simply because they do not have the time or expertise to dedicate to navigating important life milestones such as saving for a house, building an investment portfolio, or saving for retirement. Without advisors, many people would never meet many of their dreams, say to travel the world or save an appropriate amount of money to send their kids to college. While it may sound daunting, skilled financial advisors often enjoy the challenge.
“I cannot effectively do this without being a patient and attentive listener, understanding their morals and values, family needs, etc., as that informs their plans,” Rupp says. “I also must stay organized and be prompt and confident in my responses so clients can trust that their wealth is being well-cared for at all times.”
It is also important to remember that becoming an exceptional financial advisor is not something someone can become overnight, and it is an occupation that requires time, experience, and a strong sense of ethics.
“Pursue your passion and deeply serve your clients because that's why we're in this business—to make a difference, to make an impact, and to make a positive difference in their lives,” Vita says.
Frequently asked questions
Is it hard to be a financial advisor?
Becoming a financial advisor requires several steps, but it is not necessarily hard for motivated candidates. The process can take several years of studying, but many entry-level roles will guide individuals through their initial stages.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
How do I become a financial advisor from scratch?
To become a financial advisor, the minimum requirements include having a bachelor’s degree as well as proven experience in the world of finance. Those early in their career can choose to major in business or economics, and career changers can take a financial advising bootcamp-type preparation course. Then, individuals should begin studying for the FINRA examinations, and if applicable, the CFP requirements.
Is it hard to be a financial advisor?
Becoming a financial advisor requires several steps, but it is not necessarily hard for motivated candidates. The process can take several years of studying, but many entry-level roles will guide individuals through their initial stages.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
Do financial advisors make a lot of money?
Yes, many financial advisors make six figures. The median annual pay was $99,580 in 2023, according to BLS. For those with the CFP designation, the median pay is close to double that amount at $192,000.
How do I become a financial advisor from scratch?
To become a financial advisor, the minimum requirements include having a bachelor’s degree as well as proven experience in the world of finance. Those early in their career can choose to major in business or economics, and career changers can take a financial advising bootcamp-type preparation course. Then, individuals should begin studying for the FINRA examinations, and if applicable, the CFP requirements.
Is it hard to be a financial advisor?
Becoming a financial advisor requires several steps, but it is not necessarily hard for motivated candidates. The process can take several years of studying, but many entry-level roles will guide individuals through their initial stages.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
How long does it take to make it as a financial advisor?
It can take several years even after landing an entry-level finance role to be a fully-fledged financial advisor. The reason is that individuals must pass FINRA examinations to be officially licensed in their state.
Do financial advisors make a lot of money?
Yes, many financial advisors make six figures. The median annual pay was $99,580 in 2023, according to BLS. For those with the CFP designation, the median pay is close to double that amount at $192,000.
How do I become a financial advisor from scratch?
To become a financial advisor, the minimum requirements include having a bachelor’s degree as well as proven experience in the world of finance. Those early in their career can choose to major in business or economics, and career changers can take a financial advising bootcamp-type preparation course. Then, individuals should begin studying for the FINRA examinations, and if applicable, the CFP requirements.
Is it hard to be a financial advisor?
Becoming a financial advisor requires several steps, but it is not necessarily hard for motivated candidates. The process can take several years of studying, but many entry-level roles will guide individuals through their initial stages.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
