What do Personal Financial Advisors Do?
Many people need help managing their money, whether it is concerning paying down debts, creating savings, diversifying their portfolios or all of the above. As a personal financial advisor you would serve as a knowledgeable source to aid individuals in cultivating and achieving their financial goals.
Personal Financial Advisor Skills and Abilities
There are certain skills and abilities that are critical in being a successful personal financial advisor. Communication is one of the most important skills that you must possess. It is not enough for you to understand business concepts and know how to apply them, but you must be able to explain them to your clients in a way that they can understand. You should also be able to use active listening, critical thinking and reasoning skills to help your clients develop the best course of action for their needs. Having sales and marketing skills can also be beneficial in selling the different products that you may offer.
Personal Financial Advisor Duties
As a personal financial advisor you must first understand your clients financial standing, so you must assess their current situation. You will also need to speak with them to determine their financial goals, and help them to streamline those goals if necessary. Then, you will need to present the possible options to help them reach their goals. Once you have determined a course of action, it is your duty to put those measures in place and monitor them to ensure their effectiveness. All the while, you will be cultivating strong business relationships with your clients.
Personal Financial Advisor Tools and Technology
Considering that the position is financially based, your calculator will be one of your greatest tools. An organizer or PDA will also be important to help keep track of your various appointments. You will need access to a computer on a regular basis, as well as a few software technologies:
- Customer and document management
- Financial analysis
- SpreadsheetAll of
These tools and technologies work together to aid you in developing, executing and monitoring proper financial plans for your clients.
Education and Training for Personal Financial Advisors
To become a personal financial advisor you will need to obtain a bachelors degree in finance or a related field, such as business, economics or accounting. Though no specific training is required beyond having a degree, the field of finance is ever growing and evolving, so it is your duty to stay abreast of new and emerging trends within the finance arena. You can achieve this through various means, including subscribing to financial newsletters and magazines, attending conferences or taking training courses.
Personal Financial Advisor Salary
Considering the importance of individuals finances, it is understandable why a personal financial advisor is paid quite well. The median salary of an advisor in 2014 was $81,100, with some advisors garnering more than $187,000. Even at the low end advisors were making $35,500. The wide scope of salaries can be attributed to the flexibility of the industry. Some advisors may work for corporate firms, private firms or their own businesses. Other factors, such as the geographical location and area demographics, also play a part in determining the salary.
Personal Financial Advisor Jobs by Geography
California and New York are the leading states with jobs for personal financial advisors, though many other states have quite a few openings and show a strong amount of growth in the future. In the aftermath of such a strong economic shift people are very conscious of their financial stability, which makes this a great career to pursue.