A Closer Look at a Career as a Financial Advisor
At first glance, the job of a financial advisor does not seem to be in high demand compared to jobs in the skilled trades or in the healthcare industry. However, with consumerism so widespread these days, everyone can benefit from being finance-savvy—yes, even those who assume they don’t have a lot of earnings or budget to work with. The trouble is, not everyone has what it takes and therefore for them hiring the services of a financial advisor can make a lot of difference. This is the reason why financial advisors has become one of the fastest-growing industry in Canada.
If you are passionate about financial planning, this profession is a good one to pursue. Apart from it being financially rewarding, it also affords one numerous opportunities in various industries. Read on to learn more about this lucrative career.
Financial Advisors – What You Need to Know
The financial advisors’ main objective is to work with private individuals or institutional clients (from banks, insurance companies, or mutual fund organizations) to assess their financial needs, lay out a financial plan, establish short-term and long-term financial goals, and recommend investment options such as stocks and bonds. Due of the nature of their job, financial advisors must possess high-level knowledge in the financial and investment fields and have expert familiarity with relevant tax laws that are associated with such options.
According to PayScale.com, a financial advisor can earn an average of $48,483 per year with potential for bonuses, profit sharing, and commission. According to the Financial Planning Standards Council, 65% of financial advisors earn over $100,000.
To prosper as a financial advisor, a bachelor’s degree in accounting, business, finance, or any related field is a huge advantage, although not explicitly required. Aspiring financial advisors should also work to acquire a comprehensive knowledge of government (federal, state, and local) laws and regulations and Security Exchange Commission (SEC) rules and guidelines. It is always beneficial to consistently brush up on monetary rules and regulations as well.
To be technology-savvy is a recommendation for all financial advisors, and it’s a huge boost if they can employ the use of new self-serve tools such as automated portfolio management to accommodate their client base.
To practice as a financial advisor, registration is a must for all provinces and territories although there are financial advisors who go into this profession without obtaining the proper registration. This is why consumers are advised to check the Canadian Securities Administrators’ National Registrant Search to check the advisors’ qualifications. Everywhere in Canada except Quebec, financial advisors and financial planners can be used interchangeably. In Quebec, one can only refer to themselves as financial planners if they have a certificate issued by the Autorité des marchés financiers or are members of a professional association where the Autorité des marchés financiers is part of the agreement.
Pros and Cons
A career as a financial advisor is extremely rewarding financially speaking and professionally speaking. They have flexible employment opportunities as they can work with banks, securities, mutual funds, insurance, credit unions, law firms, accounting firms, and even entrepreneurial businesses. It allows one to immerse themselves in a wide range of financial options and interact with various individuals across all socio-economic backgrounds.
The expectations from financial advisors are ever-evolving, however, and it is easy to falter in this field if you rest on your laurels. This is why financial advisors should work hard to adapt to the business climate especially in terms of technology improvements, stricter regulations, and market volatility.