Do you like handling and managing money? If yes, pursuing a career as a financial planner or adviser might be your right choice!
The profession requires a high degree of expertise and a passion for assisting businesses and individuals. A financial planner has a wide range of responsibilities. They help, educate, and provide financial advice and formulate financial plans.
It is a career where you go from analysing data to empathising with a client's difficulty in minutes.
Read the post below to learn how to become a certified financial planner in Australia, the degree requirements, the salary they earn, and what financial planning is to start a successful career.
1. What Does AFinancial Planner Do?
A financial planner is a person who works for an investment firm or bank that advises customers on how to make the best use of their money by giving them recommendations. Sometimes, the planner makesfinancial and investment decisionson their client's behalf.
As a financial institution expects its financial planners to retain and serve clients for a long time, this profession demands an outgoing personality and excellent analytical abilities. The financial planner may host investment seminars to educate clients and build new business relationships.
Financial planners pay attention to their clients and assist them in determining their needs. They help customers develop a realistic framework for their financial investment objectives before recommending execution techniques.
A planner must stay updated on the latest advancements in the investment sector, including all the possibilities and risks, to provide the best information to clients. A financial planner should also be able to lay out a logical investing framework for his clients, offering them options based on return on investment and risk.
Generally, financial planners operate in an office environment during regular business hours. However, a financial planner may work longer hours performing research, analysis, and ongoing education. This may happen due to the several investment services offered and the constant introduction of new products.
Furthermore, a financial planner must complete abachelor's degreein business or a similar discipline. Some employers may require you to possess apostgraduate degree.
Financial planners usually go through a training program with the employing financial organisation, depending on an employee's previous experience. Remember, prior experience as an assistant or associate financial planner is required in many cases.
2. Major Tasks and Duties of AFinancial Planner
Set financial goals, and devise and implement methods to achieve them.
Monitor investment performance and review and adjust investment strategies in response to market developments.
Organise the collection of accounting, financial, and investment data and prepare reports, budgets, statutory returns, and forecasts.
Interview prospective clients to determine their financial objectives and status, discuss financing options, and develop investment strategies and financial plans.
Provide advice on sources of funds, investment strategies, and distribution of earnings.
Arrange to sell and buy bonds and stocks for clients.
Help clients to meet their superannuation compliance requirements.
Arrange and recommend insurance cover for clients.
Manages the funds raised through unit trusts and personal superannuation saving policies.
Refer clients to other organisations to get services described in financial plans.
3. Steps To Become A Financial Planner In Australia
Here are some common steps you can follow to start a career as a financial planner in Australia successfully:
Step 1: Obtain ABachelor's or Diploma Degree
As per theASIC(Australian Securities and Investments Commission), there are a variety of specific and general knowledge requirements to become a financial adviser in Australia. You must complete a certificate, abachelor's degreeor anadvanced diplomain a related subject.
Obtaining a qualification inbusiness, financial planning, oraccountingwith an emphasis on financial planning will provide you with the essential skills to develop your profession. These qualifications meet theCFP(Certified Financial Planner) certification's minimum educational criteria.
Step 2: Figure Out What Type of Planner You Want To Become
After completing your primary education, you should understand the services you would like to offer as a financial advisor. Hence, deciding whether you want to focus on insurance, superannuation, financial planning, or a combination of these services and others would be best.
Furthermore, ASIC requires additional training to demonstrate that you have gained specialist knowledge in the relevant fields outlined inregulatory guide 146.
Step 3: Obtain Entry-Level Employment With A Licensee
After your education, you can begin applying forentry-level jobswith practising financial firms or advisors who possess an ASIC-issued Australian Financial Services Licence (AFSL).
Always prepare to start at the bottom and work your way up because this profession is highly experience-based. Most financial advisors begin their careers as paraplanners or administrators, then progress to associate advisors before taking on the financial advisor's responsibility.
Step 4: Gain Your Certification
While you do not require a certification to practise, having one can help you get employed faster. It can also help you stand out from your coworkers if you currently have a job. Not only that, but your clients will also be more confident in your ability to perform well in your profession.
You can obtain a certification with a recognised and reputable organisation, such as theFPA(Financial Planning Association of Australia).CFP(Certified Financial Planner) is also a widely recognised and recommended certification.
You don't need this certification for a job as a financial advisor. Still, it is encouraged since it shows customers that you are knowledgeable and dedicated towards ethical standards and professional development. Keep in mind that employers tend to favour certified professionals, thus raising your earning potential and improving your job prospects.
Note:The Australian Securities and Investments Commission (ASIC) regulates the standards for becoming a financial advisor in Australia, and these requirements are subject to change. So remember to checkRegulatory Guide 146for the most up-to-date information.
4. What Are The Educational Requirements To Become Financial Planner In Australia?
The educational requirements to become a financial planner are pretty straightforward to meet. It often incorporates a bachelor's degree in a related field, such as accounting, finance, mathematics, economics, or business.
The ASIC (Australian Securities and Investments Commission) states that many of these degrees cover specific and general requirements. Some universities in Australia also offer a Bachelor's Degree in Financial Planning, which meets the minimal educational requirements.
Generally, aMaster's Degreeis not required because many organisations that recruit financial planners have training programs that build on the foundation laid by the Bachelor's degree.
You can also undertake short courses online to make yourself more desirable to potential employers. These include a Double Diploma in Business and Leadership or a Graduate Diploma in Strategic Leadership. Suppose you wish to pursue something other than afull-time Bachelor's degree.
In that case - you can go for online financial planning courses, such as a Diploma in Financial Planning or aCertificate IVin Financial Services.
As some courses consider previous education, the length of the course is determined by whether you are beginning from scratch or polishing your skills. However, most of the courses offered take almost one year to finish. You can contact the university any time if you want additional information about the course you want to opt for.
As soon as you complete your education, you can look at firms that provide entry-level jobs. Ensure these firms possess an ASIC-issued Australian Financial Services Licence (AFSL).
5. Financial Planning Courses in Australia
You must have the necessary skills to be an excellent financial planner. After all, your daily decisions may significantly impact your customers' economic well-being.
You can go forTAFEcourses that make it simple to obtain the skills, training, and knowledge you need to become a successful financial planner. Such courses offer nationally recognised credentials and connect you with high-quality financial planning courses taught by industry professionals.
Bachelor Degree Courses
To become a certified financial planner in Australia, you must complete abachelor's degree courseand pass a government entrance exam.
Bachelor's degree courses incorporate everything you need to know about financial planning, from offering professional advice and navigating the markets to having a thorough grasp of all the regulatory and legal aspects that significantly impact financial planning in Australia.
A Bachelor of Business (Financial Planning) program remains updated with the latest industry requirements. It can take up to four years of full-time study. A bachelor's degree in finance may lead to management-level positions and chartered financial planning jobs.
Diploma Courses
Undertaking adiploma-levelfinancial advisor course is the best way to get into entry-level positions, such as a junior financial advisor or a client service officer.
A Diploma in Financial Planning incorporates everything, including building strong relationships with clients, determining their goals, and providing them with various financial plans and solutions.
Most diploma-level programs in Australia are compliant with RG146, which is a legal and regulatory standard for financial activities. RG146 is now a legal requirement in Australia for several financial planning positions.
6. What Skills Required To Become A Financial Planner in Australia?
To deliver the best client care service, financial planners must combine soft skills such as empathy and communication with technical abilities such as mathematics and analytics.
Remember, the success of your clients has a direct impact on your industry reputation. As a result, your job is to involve yourself in your client's unique situations by empathising, comprehending, and listening to them.
Here are some soft and technical skills you must possess as a financial planner:
| Technical Skills | Soft Skills |
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7. How Much Does a Financial Planner Earn in Australia?
According toPayscale, the entry-level financial advisor salary for individuals with less than one year of experience is around AU$57,500, based on 24 salaries. This includes bonuses, tips, and overtime pay.
Based on 174 salaries, an early career financial planner with one to four years of experience makes an average pay of around AU$71,500. And a mid-career financial planner with five to nine years of experience earns an average total income of around AU$87,500, based on 133 salaries.
On the other hand, the certified financial planner salary in Australia for experienced professionals with ten to nineteen years of experience is around AU$98,000, based on 135 salaries. Employees with a long career (20 years or more) receive an average total remuneration of around AU$100,500.
Now that you know everything about how to be a financial planner in Australia, you are ready to boost your career and embark on a journey of success.
Useful Links to Explore:
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- A Complete Guide to Study in Australia
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- What to Study in Australia?
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As a seasoned financial professional with extensive expertise in financial planning and advisory, I can provide valuable insights into the concepts discussed in the article.
The article outlines the role and responsibilities of a financial planner, emphasizing the need for expertise, analytical abilities, and an outgoing personality. I can confirm that a successful financial planner indeed requires a combination of technical skills, such as analytical abilities and financial knowledge, along with soft skills like empathy and effective communication.
The major tasks and duties listed for financial planners, including setting financial goals, monitoring investment performance, and providing advice on various financial aspects, align with the core responsibilities in the field.
The steps to become a financial planner in Australia are accurately portrayed. Obtaining a bachelor's or diploma degree, deciding on the type of planner one wants to become, gaining entry-level employment, and obtaining certification are key steps in building a successful career in financial planning. The emphasis on continuous education and staying updated with the latest advancements is crucial, as the financial industry is dynamic.
The educational requirements to become a financial planner in Australia, as mentioned in the article, are in line with industry standards. A bachelor's degree in business, finance, or a related field is typically required, with additional certifications such as the Certified Financial Planner (CFP) being highly beneficial.
The article also provides information on financial planning courses in Australia, including bachelor degree courses and diploma courses. This reflects the diverse educational paths available for individuals aspiring to become financial planners, catering to different preferences and career goals.
The skills required to become a financial planner, both technical and soft skills, are accurately highlighted. Analytical abilities, attention to detail, and financial reporting skills are crucial on the technical side, while soft skills like effective communication, empathy, and relationship-building are equally important for client success.
The salary information provided for financial planners in Australia is consistent with industry standards. Entry-level salaries, mid-career earnings, and experienced professionals' compensation levels are well-represented, giving a comprehensive overview of the earning potential in the field.
In conclusion, the article provides a thorough and accurate guide for individuals aspiring to pursue a career as a financial planner in Australia. The information presented aligns with industry practices, and the steps outlined are valuable for those looking to enter the financial planning profession.
