Life after the CFP course can be very exciting. Doors across the financial industry are opening up, as more and more firms recognize the value of this sought-after qualification. You are now ready to get out there and put your newly acquired certification to good use. The globally recognized program gives you the training and skills you need to take on the finance world. It will also give you the confidence to line up interviews, get in touch with prospective employers and crack those question and answer rounds. At the end of it all, you receive an offer, an office and a chance to make your mark as a certified financial planner.
Provided of course, you first sort out in which field your expertise lies. The course offers an intensive syllabus so you can work in many areas such as insurance, investments and retirement planning. So, which direction do you see your career heading? There are quite a few opportunities to explore. The financial industry has many job profiles that could suit your qualifications and interests.
Why is CFP so coveted among financial planning companies?
There is a wealth of opportunity here. The CFP course ensures that every student adheres to the strict code of ethics. They train the candidates to work in the best interest of their clients. Once you are CFP-certified, your job is to create close customer relationships and gain the trust of your clients. Your knowledge and skills give them the confidence to chart out their life goals and financial solutions. This is why a financial planner is so in demand among banks, asset management companies, NBFCs and other consultancy firms. Recruiters are constantly on the hunt for certified people to join them. No matter which sector you choose, your primary responsibility will be to help many people realize their financial dreams.
So what profile is best for you? Let’s take a step back and figure out the various financial sectors and the job profiles available within them.
Profile: Financial planner, Relationship manager
The retail banking industry is well aware of the need for financial planning. To meet the current demand, banks are now hiring CFP-trained executives to personally manage their clients’ investments. The job includes:
- Analyzing the client’s financial requirements and creating a specialized plan
- Offering suggestions and advice to the clients
- Develop close relationships to ensure customer loyalty
- Integrate banking services as part of the financial planning
- Bringing in new clients
- Giving tailor-made advice to suit any sudden life changes
Sector: Investment management
Profiles: Asset manager, Portfolio manager, Wealth advisor, Financial adviser
The investment industry is constantly on the hunt for financial planners who can work with clients to create, build and manage their personal portfolios. Some of the responsibilities can include:
- Working in asset management companies
- Advising clients on personal financial planning
- Helping clients with retirement, estate or tax planning
- Working as a wealth advisor for clients with a high net worth
- Enabling clients to build funds for specific financial goals, such as their child’s college education abroad or buying a home
- Working as a financial advisor where you create strategies, analyze risks and offer recommendations to your clients to make investments
- Looking for new investment products and opportunities
Sector: Non-banking financial companies (NBFC)
Profiles: Personal financial advisor, Client services advisor
NBFCs often hired CFP-certified personnel to work one-on-one with their clients. The job description involves:
- Creating and applying specific financial plans for clients
- Reviewing and analyzing the effectiveness of the financial plans
- Customizing solutions to meet the goals of the client
- Educating clients on stocks, shares, bonds, etc.
- Evaluating any risk factors or obstacles before investing
Sector: Insurance companies
Profile: Financial planner
It’s no surprise that insurance agencies also hire CFA professionals. They need employees who can work closely with their clientele. Your responsibilities include:
- Selling insurance-based financial products to your clients
- Advising clients on mutual funds, stocks, ULIPs, national pension scheme and public provident funds
- Developing a plan for short-term as well as long-term financial goals
- Recommending investment plans that limit risk and also result in tax savings
- Creating an investment strategy to prepare for retirement
Earning potential for financial planners
In India, certified financial planners are handsomely rewarded for their skills and abilities. A financial planner with limited experience can earn an annual salary between 2 lakhs to 9 lakhs. This number increases exponentially once you start handling the bigger clients. Seasoned planners with high-profile clients can stand to earn as much as 2 crores per year. When handling large sums of money, you could even stand to collect around 20 to 30 percent commission on most deals. The numbers vary as per the size of the company and yearly revenue, but yes, a career as a certified financial planner does rake in quite a tidy sum. You have to work hard and develop a trustworthy relationship with your clients to reap the rewards.
Skills to be a successful financial planner
Once you figure out which job profile suits you, you are ready. It’s now time to join the financial workplace. While a CFP qualification on your resume will get you noticed, you also need some additional skills to make a good impression. Employers look for specific qualities when hiring planners. Here are some of the skills you need to do well in this industry
- Good communication — you should be able to converse and convince your clients that you have their best interests at heart
- Friendly demeanor — While you should remain professional during all client interactions, it helps if you have a friendly personality that puts them at ease
- Attention to detail — There is so much happening in the financial markets every day, You need a sharp eagle eye to ensure nothing slips by you
- Reliable and trustworthy — A solid reputation will precede you when you are up for a promotion or switch jobs. If clients are willing to follow you to your new company, it bodes well for you
- Analytical mind — Your CFP training will help you organize and interpret financial data efficiently
- Risk assessment — An ability to gauge each opportunity for potential risk factors can save a lot of money and time
- Wealth management — You should be able to manage multiple portfolios while customizing each one to the client’s needs
- Knowledgable and well-informed — You don’t want your employer or client to catch you off guard. You have to constantly stay updated and keep your expertise at a cutting-edge level
“I’m not interested in making more money,” No one has ever said these words. Today, individuals, families and even companies are looking for opportunities to invest their money wisely. It doesn’t matter which financial sector you choose to work in, you will find clients who need a CFP-certified advisor to help them make smart decisions. As a personal financial planner, you have the chance to make a significant impact on your client’s fiscal health. You can guide them, help them make the right choices and build an investment portfolio that leaves them feeling content and secure.
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