GUIDE TO
CAREERS IN
FINANCIAL
PLANNING
ADDITIONAL SUPPORT HAS BEEN PROVIDED BY
SUPPORTING SPONSORS
CENTER FOR FINANCIAL PLANNING FOUNDING SPONSORS
SIGNATURE SPONSOR
2
THE CFP BOARD CENTER FOR FINANCIAL PLANNING WOULD LIKE TO THANK THE
FOLLOWING COMPANIES FOR THEIR GENEROUS CONTRIBUTIONS TO THIS GUIDE:
SPONSORS
WELCOME
CHAPTER 1: INTRODUCTION
How to Use This Guide
What Do Financial Planners Do?
What is the Financial Planning Process?
What Makes Financial Planning an Attractive Career?
A Rapidly Growing Field
CHAPTER 2: CAREERS IN FINANCIAL PLANNING
Financial Planning Practice Career Track
The Financial Planning Practice
Typical Structure of a Financial Planning Department or Division Within a Financial Services Company
Starting a Financial Planning Career in Operations
Starting a Financial Planning Career in a Virtual Advice Center
Starting a Financial Planning Career in a Branch Oce
Specialist Positions
Exploring Other Financial Services Careers
CHAPTER 3: COMPANIES THAT HIRE FINANCIAL PLANNERS
Company Characteristics
Financial Planning Services Within Large and Small Companies
Licensing to Start Your Career
Centralized and Decentralized Companies
Financial Planner Compensation Methods
Financial Services Industry Channels
2
5
6
14
30
3
TABLE OF CONTENTS
4
55
54
42 CHAPTER 4: WHAT’S THE RIGHT FINANCIAL
PLANNING CAREER PATH FOR ME?
Financial Planning as Your First Career
Financial Planning as a Career Change
Obtaining Your CFP® Certification
Exploring Financial Planning Careers
Where to Find Financial Planning Jobs
What Can I Expect in the Early Years?
Where You Start Isn’t Where You Have to Stay
KEY TAKEAWAYS
APPENDIX
Questions to Ask in a Job Interview
Participating Companies and Professionals
Members of the CFP Board Center for Financial Planning’s Workforce Development Advisory Group
About the Research
About the Researchers
About the Contributor
About CFP Board
About the CFP Board Center for Financial Planning
Choosing a profession—whether you are
just graduating from school or are making a
career change—can be equal parts exciting
and overwhelming. There are countless
opportunities to consider, each with their
own unique advantages, challenges and
pathways to success.
You are likely reading this guide because
you are considering a career in the financial
planning profession but want to know
more about what it means to be a financial
planner and the dierent types of jobs
available to you.
You have come to the right place.
The Guide to Careers in Financial Planning
provides you with guidance on beginning
and sustaining a successful financial
planning career. Based on interviews with
77 professionals across 42 companies,
the guide examines dierent types of
financial planning positions, typical career
tracks and employers that oer jobs in
financial planning—ranging from individual
practices to large financial services firms.
It also includes information on how to get
started, whether you’re a student or a career
changer; where to find jobs; and what to ask
employers in order to find a career that best
fits your strengths and interests.
The CFP Board Center for Financial Planning
published this guide as part of our ongoing
eorts to cultivate a quality workforce and
ensure the financial planning profession can
recruit and retain the talented professionals
on whom the American public relies to
guide their financial future. Families and
households across our country need more
people like you—young, eager to learn and
driven to succeed—to join the financial
planning profession and provide the
competent, ethical financial planning advice
that more Americans increasingly demand.
We hope this guide inspires you to choose
a financial planning career and that you will
use it as a resource to map your professional
path and support your advancement within
our profession.
We would like to thank the guide’s Signature
Sponsor BNY Mellon Pershing and The
Ensemble Practice for their generous
support of the guide’s development. We are
also grateful to Supporting Sponsors Merrill
Lynch and Facet Wealth, as well as the
Center’s Founding Sponsors Northwestern
Mutual, Envestnet and Charles Schwab
Foundation, in partnership with Schwab
Advisor Services.
We stand ready to assist you in joining this
rewarding profession and wish you success
in your professional journey.
Sincerely,
WELCOME
KEVIN R. KELLER, CAE
Chief Executive Ocer
CFP Board
KEVIN R. KELLER, CAE
Chief Executive Ocer
CFP Board
D.A. ABRAMS, CAE
Managing Director
CFP Board Center
for Financial Planning
D.A. ABRAMS, CAE
Managing Director
CFP Board Center for
Financial Planning
5
This guide will help you:
INTRODUCTION
CHAPTER ONE
Students in high school or
college who are deciding on
their professional career
Career changers or recent
graduates considering a
career in financial planning
Financial services
professionals interested in
becoming financial planners
Learn more about the financial
planning process and what financial
planners do
Understand the broad range of
career opportunities in the financial
planning profession
Find financial planning careers that
match your strengths and interests
6
How to Use This Guide
Financial planning is a fulfilling career, and demand for
financial planners is quickly outpacing supply. Now is
the perfect time to begin your journey into the financial
planning profession.
The Guide to Careers in Financial Planning is designed
to introduce you to the wide range of career
opportunities in the financial planning profession.
It introduces typical entry points and career tracks,
companies that hire financial planners, and provides
guidance on finding the right opportunity. The guide is
a useful resource for developing an action plan that will
help you begin a successful financial planning career.
This guide is intended for:
We encourage you to read the entire
guide to fully understand the opportunities
available in the financial planning profession,
but you can use the recommendations
below to find the most relevant sections
for you to review.
7
IF YOU ARE A... READ...
What Do Financial Planners Do? pages 8-9
What is the Financial Planning Process? page 10
Financial Planning Practice Career Track pages 15-18
Financial Planning as Your First Career pages 43-44
Financial Planning Degree Option page 47
Student in High School or College
Deciding on your career after school
Financial Planning Practice Career Track pages 15-18
Starting a Financial Planning Career (Operations,
Virtual Advice Center, Branch Oce) pages 24-26
Companies That Hire Financial Planners pages 30-40
Financial Planning as a Career Change page 44
Certificate Option page 47
Recent Graduate or Career Changer
Seeking your first career, a transition into
a more satisfying career or reentering the
workforce
Financial Planning Practice Career Track pages 15-18
Specialist Positions page 27
Companies That Hire Financial Planners pages 30-40
Certificate Option page 47
Financial Services Professional
Employed by a financial services firm or
other financial institution and interested
in becoming a financial planner
At a Glance
What Do Financial
Planners Do?
Financial planning is a collaborative process
that helps maximize a client’s potential for
meeting life goals through financial advice
that integrates relevant elements of the
client’s personal and financial circumstances.
Financial planners work with individuals
and families to make sound financial and
investment decisions to help maximize their
chances of achieving critical life goals based
on their priorities and fundamental values.
They may advise and assist clients on a
broad spectrum of tasks, such as saving for
retirement, investing money to purchase
a home or start a business, paying for the
education of children or other loved ones,
and preserving family wealth so it can be
passed to future generations. Financial
planners also may help businesses design
and manage retirement plans and other
financial welfare programs for the benefit of
their employees.
Financial planners are trained to use a
structured financial planning process to
guide clients toward prudent financial
decisions. Employing knowledge of personal
finance, budgeting, taxes, financial products,
investments and investment markets, and
with the ability to use robust analytical tools
and data with the power to illustrate various
outcomes, financial planners are able to make
recommendations to help their clients reach
informed conclusions about the right path to
take toward their desired financial futures.
Many financial planners work with clients
within the structure of a long-term, ongoing
relationship. Knowledge of the client’s
situation, needs, goals and values allows
the financial planner to not only respond to
present circumstances and the immediate
decisions that need to be made, but also
to anticipate future needs and situations.
Much like doctors who are able to treat the
whole patient, financial planners are valuable
because they can oer or provide their
clients with comprehensive financial advice.
8
The CERTIFIED FINANCIAL PLANNER™
certification is the standard of excellence
in the financial planning profession. While
the CFP® certification mark is not required
for professionals to call themselves financial
planners, the more than 90,000 CFP®
professionals in the U.S. have proven their ability
to provide competent and ethical financial
planning service to their clients because of the
high standard of competence required to pass
the CFP® exam, their demonstrated education
and experience, and the commitment they
make to CFP Board, as part of their certification,
to meet high ethical standards, including the
fiduciary duty to act in clients’ best interests
whenever providing financial advice.
It is common for financial planners to work
as a team. Within a single organization, a
client relationship may be assigned to a
cadre of financial planning professionals, with
one financial planner focusing on analysis
and another financial planner focusing on
communicating and collaborating with the
client. Financial planners also may collaborate
with allied professionals who are members
of a client’s team outside of the organization
such as tax experts, attorneys and risk
management specialists, in order to develop
comprehensive strategies to help the client
maximize their potential for meeting their
financial goals.
Many dierent types of organizations
employ financial planners, from financial
services firms such as banks and broker-
dealers to accounting firms, insurance firms,
independent financial planning firms and
investment firms. While these organizations
are dierent in many ways, they all can use
the financial planning process in their work
and make a commitment to helping clients
make sound financial decisions.
Financial planners work under many dierent
titles, including Financial Advisor, Investment
Advisor, Wealth Manager, Financial Consultant
and, of course, Financial Planner. Such terms
vary based on the preference of the company
oering the service.
9
What is the Financial
Planning Process?
A financial planner uses the financial
planning process to guide clients through
complicated financial decisions, such as
how much to save for retirement and
how to invest those savings with the goal
of reaching their desired retirement age
and level of income.
Certified Financial Planner Board of
Standards, Inc. (CFP Board), which sets
and enforces standards for financial
planners who hold the CFP® certification,
has established a 7-step financial
planning process that may be used to
consider all aspects of a client’s personal
and financial situation when formulating
financial planning strategies and making
recommendations.
At its foundation, financial planning is
about supporting individuals and families,
especially to plan for crucial moments
in their lives. It is a process of close
collaboration between a client and a
financial planning professional who the
client has selected and entrusted with their
most private financial details, ambitions
and anxieties.
UNDERSTAND the client’s personal and financial
circumstances. The financial planner must obtain the
information needed to fulfill the engagement, and
then analyze the information to assess the client’s
circumstances.
IDENTIFY and select goals. The financial planner
must help the client identify goals, and then select and
prioritize goals.
ANALYZE the client’s current course of action and
potential alternative courses of action. The financial
planner analyzes the client’s current course of action,
and where appropriate, considers and analyzes one or
more alternative courses of action, whether each action
maximizes the potential for meeting the client’s goals,
and how each goal integrates the client’s personal and
financial circumstances.
DEVELOP financial planning recommendations.
The financial planner selects one or more
recommendations designed to maximize the
client’s potential for meeting the client’s goals.
PRESENT financial planning recommendations
to the client. The financial planner presents the
recommendations to the client, including the
information that the financial planner considered
when developing the recommendation.
IMPLEMENT financial planning recommendations.
The financial planner establishes with the client
whether the financial planner has implementation
responsibilities. A financial planner with implementation
responsibilities must identify and analyze actions,
products and services designed to implement the
recommendations, recommend one or more actions,
products, and services to the client, and help the client
select and implement the actions, products and services.
MONITOR the client’s progress, review the
client’s situation and update the financial planning
recommendations. The financial planner establishes
with the client whether the financial planner has
monitoring and updating responsibilities, and if so,
what are those responsibilities. A financial planner with
monitoring responsibilities must analyze, at appropriate
intervals, the progress toward achieving the client’s
goals, and obtain from the client current information
concerning the client’s circumstances. When the
financial planner has updating responsibilities, and
circumstances warrant changes, the financial planner
must update as appropriate.
CLEARLY, FINANCIAL
PLANNING IS MUCH MORE
THAN SPREADSHEETS,
BUDGETS, SALES AND
STOCK TICKERS.
10
7-STEP FINANCIAL
PLANNING PROCESS
Visit CFP.net to learn more
about the benefits of financial
planning careers and hear
CFP® professionals talk about
why they love their job.
11
1. 2020 InvestmentNews Adviser Compensation & Stang Study
FINANCIAL REWARDS
PERSONAL FULFILLMENT
MENTAL STIMULATION
FLEXIBILITY
WORK
BALANCE
LIFE
What Makes Financial
Planning an Attractive
Career?
A financial planning career can provide:
• Personal fulfillment of helping others:
You can enjoy the personal satisfaction of
making a dierence in your clients’ lives
as you guide them through building
wealth, managing financial challenges and
securing their families’ financial futures.
• Financial rewards: Experienced financial
planners, also known as Lead Advisors,
who have 5 to 10 years of experience
make $126,945 to $213,126 per year,
according to compensation data from
InvestmentNews.
1
• Mental stimulation: Good financial
planners must be proficient in a wide
range of financial areas, from retirement
planning and estate planning to insurance,
taxation and investments. It also helps to
have a solid understanding of client
psychology.
• Work-life balance: Talk to successful
financial planners and you will learn that
what they value the most in their work is
the freedom and flexibility to balance their
personal and professional lives. The
variety of career options enables you to
build the work-life balance you want.
• Career flexibility: Financial planning is not
a one-size-fits-all career. As you will read
in this guide, there is a wide variety of
career paths—from striking out on your
own to working at firms big and small.
A Rapidly Growing Field
A perfect storm of demographic trends and
industry developments has made this a great
time for newcomers to enter the financial
planning profession. The combination of the
aging baby boomer generation, increasing
life spans and the shift away from pensions
toward individual retirement plans means
more Americans are looking for competent,
ethical financial planning advice. What’s
more, part of this aging wave includes
advisors themselves, many of whom—about
37%—are expected to retire over the next
decade.
2
As a result, there is an abundance of
career opportunities for the next generation
of financial planners.
Additionally, the changing demographics of
wealth in the U.S. mean that more women
and people of color are accumulating wealth
and need financial planning advice. As a
result, the financial planning profession needs
more financial planners from populations
that are currently underrepresented in the
profession. For example, only about 4% of
CFP® professionals in the U.S. are Black or
Latino, even though these communities
comprise more than 31% of the U.S.
population,
3
and women comprise only
23% of CFP® professionals.
Recognizing this opportunity, financial
services companies are prioritizing their
diversity, equity and inclusion initiatives in
order to recruit a more diverse financial
planner workforce that can meet the financial
planning needs of increasingly diverse
consumers. This means that there are ample
opportunities for individuals from diverse
backgrounds to become financial planners.
The CFP Board Center for Financial Planning
is focused on creating a more diverse and
sustainable financial planning profession
through innovative solutions and initiatives.
Collectively, these eorts are making an
impact: In 2020, the number of Black and
Latino CFP® professionals rose by more than
12% over 2019, nearly 5 times the growth rate
of all CFP® professionals for the year, while
the number of women CFP® professionals
also increased to an all-time high of 20,633.
4%
23%
CFP® PROFESSIONALS IN THE U.S.
WHO ARE BLACK OR LATINO
THE NEED FOR A DIVERSE
FINANCIAL PLANNER WORKFORCE
CFP® PROFESSIONALS IN THE U.S.
WHO ARE WOMEN
12
2. 37% Of Financial Advisors Expected To Retire Over Next Decade, Financial Advisor, November 2019
3. U.S. Census Bureau, Quick Facts https://www.census.gov/quickfacts/fact/table/US/PST045219
Q. Why did you choose to work in this
particular financial planning business model?
I chose to work for a large investment firm
because of the brand name recognition,
which can be extremely helpful with acquiring
new clients. A large firm can also invest an
enormous amount of money in resources
to assist my clients. The resources provided
by the firm allow me to focus 100% of my
attention on my clients’ future, and not
concern myself with the day-to-day tasks of
operating a business. This model works for
me because it takes some of the stress away
of being an entrepreneur, but you still get the
freedom to build your own business within a
larger business.
Q. What is a typical day like for you at your firm?
Every day is dierent. Some days I spend
most of my time responding to client emails
or phone calls. Another day I could be
prepping for a review for an existing client,
or I might be out to lunch with an existing or
prospective client. You have the flexibility to
structure your day in a way that works for
you. The best part of my job is the financial
LEMAR
WILLIAMS, CFP®,
CPWA®, CTFA, CLU®
planning I get to do for my clients. I really do
get excited when I walk through a financial
plan with a client. It’s a good feeling to tell
a client we are ahead of schedule, so that
they can retire early, or that they can pay for
their child’s college tuition without negatively
impacting their own future.
Q: What do you think is the biggest
misconception about financial planning
careers?
The industry is changing, and I don’t know
anyone anymore that considers themselves
a “stock broker.” Yes, financial planners
do help their clients get invested, but the
investment portfolio is structured in a way to
control the level of risk in order to achieve a
desired objective outlined in a well-structured
financial plan. I think the other misconception
about financial planners is that we are only
investment professionals. Most financial
planners can provide guidance on insurance
planning, estate planning, retirement
income planning, Social Security, retirement
benefits, healthcare, education planning, tax
minimization strategies, as well as investment
strategies. I personally believe everyone
should have a professional with that type of
knowledge in their corner.
Wealth Management Advisor
Merrill Lynch Wealth Management
Heathrow, Florida
13
YOU HAVE THE
FLEXIBILITY
TO STRUCTURE
YOUR DAY IN
A WAY THAT
WORKS FOR YOU.
CAREERS IN
FINANCIAL
PLANNING
CHAPTER TWO
The careers of financial planners
and how they evolve in dierent
types of companies
The milestones and steps in the
career of a financial planner
Starting a financial planning
career in dierent functions within
financial services companies
Specialized careers available within
the financial planning profession
14
If you are interested in financial planning as a
career, we encourage you to consider a company
that provides financial planning and pursue a
financial planning career track. However, there are
also other types of companies and career tracks
that enable you to become a financial planner.
You will find that the financial planning profession
oers fulfilling careers and a plethora of positions
across many dierent business models and
company sizes. Much like a large art gallery, there
are many doors to enter through and many halls
to explore. This chapter will walk you through
some of the most common career tracks and
how you can get started in each one.
Financial planners help their clients make critical
financial decisions; therefore, careers in planning
are ultimately defined by the specific role that
a professional (you) plays in this process. Many
financial planners work directly with clients either
in an in-person or virtual relationship and guide
them through the creating and execution of a
financial plan. Other financial planners contribute
to the process by completing the analysis
necessary to create a plan. Yet others may be
helping with the operational aspects of executing
the plan. There are planners who also specialize in
developing new client relationships and attracting
clients to the company. All these functions are
part of the financial planning profession and
represent a progression of responsibilities that we
call a “career track.”
In this chapter, you will learn about:
Financial Planning
Practice Career Track
While companies formulate a distinct
financial planning career path to fit their
unique strategy and culture, research shows
that there are defined career stages that
most companies share. You can learn about
these career stages and their associated job
descriptions in more detail in the Center’s
Financial Planning Career Paths guide. The
stages of a traditional financial planning
career path vary based on responsibilities
and expertise and are summarized in the
following table.
This is the type of career likely to be
implemented in team-based, financial-
planning-focused companies. We will touch
on some of the variations in the career track
later in this chapter.
15
16
TYPICAL FINANCIAL PLANNING PRACTICE CAREER TRACK
Titles
Client
Responsibilities
Degrees and
Designations
Typical
Range of
Compensation
as of 2020
4
Team
Responsibilities
Typical
Experience
• Analyst
• Support Advisor
• Senior Analyst
• Gather and
maintain client
data
• Enter client
information into
various systems
• Assist the
operations
and investment
teams with client
onboarding
• Answer routine
client questions
and service
requests
Learn firm process,
master the job,
and be responsive
and supportive
to advisors and
clients
0 to 3 years
Bachelor’s
degree
$60,000 to
$70,500
$70,500 to
$79,613
$80,000 to
$122,500
$126,945 to
$213,126
$170,000 to
$346,500
Train Analysts on
the process, tools
and methodology
used by the team
2 to 5 years
(median of 5
years)
Bachelor’s
degree
Assign projects
to Support
and Associate
Advisors and
supervise quality
and timeliness
3 to 7 years
(median of 9
years)
• Bachelor’s
degree
• CFP®
certification
Lead a team
and manage the
responsibilities
and performance
within the team
5 to 10 years
(median of 17
years)
• Bachelor’s
degree
• CFP®
certification
Manage a team
or potentially
multiple teams
7 years or more
(median of 20
years)
• Bachelor’s
degree
• CFP®
certification
• Draft financial
plans
• Perform asset
allocation analysis
• Create custom
analyses of
financial decisions
• Prepare materials
for client meetings
• Perform research
on investments
• Answer routine
client questions
and service
requests
• Draft and deliver
financial plans
for review
• Implement
financial plans
under supervision
of Lead Advisor/
Managing Director
• Work with
investment team
on financial plan
implementation
• Participate in
client meetings
• Take the lead on
answering routine
client questions
• Manage client
relationships,
identifying and
meeting client
needs
• Develop and
present financial
plans to clients
• Oversee the
implementation
of financial plans
• Manage
premier client
relationships
(i.e., the most
complex and
largest in size)
as Lead Advisor/
Managing
Director
• Consult with
Lead Advisors/
Managing
Directors on
complex cases
• Associate Advisor
• Paraplanner
• Senior Associate
• Service Advisor
• Financial Planner
• Planner
• Financial Advisor
• Advisor
• Investment Advisor
• Director
• Lead Advisor
• Managing Director
• Senior Advisor
• Principal
• Partner
ANALYST
PRINCIPAL/
PARTNER
LEAD ADVISOR/
MANAGING
DIRECTOR
SERVICE
ADVISOR
ASSOCIATE
ADVISOR
4. 2020 InvestmentNews Adviser Compensation & Stang Study
Q. Why did you decide to become a
financial planner?
Finances can be a great stress for growing
families, which is something I’ve experienced
firsthand. I knew that in any career my main
mission was to help people reach a goal.
As a financial planner, I find it rewarding to
aid families in reaching their goals so they
can focus on what matters most to them.
Also, I feel that educating people about
the importance of financial planning is
rewarding.
Q. What do you love the most about your
career in this particular business model?
My current firm, Brighton Jones, allows a
clear path for growth within the business
model. As a team, we help build each other
up to help expand the business. Each client
has a team of 3: the Lead Advisor, Associate
Advisor and Analyst. The roles are clearly
defined, but we continue to learn from each
other as duties flex depending on the needs
of the client. An Analyst can develop into
MARIE
PADIONG
a Senior Analyst, an Associate Advisor, an
Advisor, and lastly, a Lead Advisor. It’s also
important to me to oer services for our
advice, rather than sell a product.
Q. Why are you pursuing
CFP® certification?
CFP® certification is a high standard.
Furthermore, fulfilling the commitment I
make to CFP Board, and giving my clients
fiduciary advice that is in their best interest,
allows me to feel like a partner to the
families I work with.
Advisor
Brighton Jones
Seattle, Washington
17
I FIND IT
REWARDING TO
AID FAMILIES
IN REACHING
THEIR GOALS.
Since many readers will likely elect to join a
company at the entry level, we will elaborate
on these positions. Entry-level positions in a
financial planning company have titles such
as Associate Planner or Advisor, Support
Planner or Advisor, Paraplanner, Analyst or
Senior Analyst. These roles typically include
the following responsibilities:
Entry-level financial planning positions
are usually trained and supervised by an
experienced financial planner and present
professionals with many opportunities
for mentoring relationships. While these
positions do not typically require CERTIFIED
FINANCIAL PLANNER™ certification,
many companies partially or fully support
professionals who wish to pursue CFP®
certification by financing the required
education coursework and providing
additional time o to study for the CFP® exam.
Entry-level positions on the financial planning
career track are actively recruited by many
financial planning companies. Job postings can
frequently be found on popular job sites such
as the CFP Board Career Center and LinkedIn
Jobs, as well as on job boards for regional
chapters of the Financial Planning Association®.
• Drafting financial plans
• Performing asset allocation analysis
necessary for client onboarding
and portfolio reviews
• Creating custom analyses of
financial decisions
• Preparing presentations and
other materials necessary for
client meetings
• Performing research on investments
that clients currently hold or
may hold
• Answering routine client questions
and service requests
The Financial Planning
Practice
The practical application of financial
planning as a profession and a career is
closely related to the notion of a “practice.”
A financial planning practice describes the
collection of people, resources, processes
and economic activities that allow a financial
planner to work with and help a group
of clients. A practice is a service unit in
the sense that it contains the resources
necessary to productively engage with
clients in their best interests. A practice
is also a business unit in the sense that
it allows a financial planner to have the
resources needed to take care of clients.
A practice can be somewhat dierent
depending on the company where financial
planners work. In some companies, a
practice is a team of professionals, each
of whom has a dierent specialized
position and dierent level of experience.
In other companies, a practice is simply
one professional who works with clients
in person or virtually and leverages
the technology and capabilities of a
supporting company that employs them
or partners with them. A practice can be
virtual such that the planner interacts with
clients primarily over the phone or web
conferencing, or it can take the traditional
form where the planner meets with clients
in person.
The notion of a practice and the types
of practice that a company creates
and supports tend to shape careers of
financial planners who work there. In most
environments, planners begin by playing a
support role in a practice and then later they
may lead a practice or even own a practice.
18
Returning to the comparison of financial
planners to doctors, a practice would be
the oce and the exam rooms, the doctors,
nurses and administrators, the furniture and
the support system. In short, the practice is
everything the doctor needs to work with
patients. Much like doctors, some financial
planners own and lead their own practices, and
some support the practices of others.
Leading a financial planning practice is both
a privilege and a responsibility. Whether you
own the practice or operate the practice
within a larger company, you have control
and flexibility with regards to client service,
methodology and process. You also have
flexibility when it comes to making business
decisions, selecting resources and deciding
how much and when you want to work.
Finally, owning or operating a practice oers
the potential for financial rewards.
Along with these benefits come increased
responsibilities. Owning or operating a
practice requires the ability to attract and
retain a significant number of clients and
successfully manage the activities of the
practice. Additionally, the more independent
your practice, the more you (and possibly your
partners or teammates) will be responsible
for the expenses of running your business. As
such, people starting a financial planning career
don’t necessarily enter by this path. Instead
they may work toward this type of practice,
building a base of clients over time that will
provide the revenue to support the business.
Owning or operating a practice also means
that you take on more regulatory risk and that
you need to be involved at least on some level
in practice management. The responsibilities
inherent to owning or operating a financial
planning practice include the following:
RETAINING CLIENTS
The financial planning professional must
maintain strong relationships with a group
of clients who are seeking advice and
relying on the professional to make final
recommendations, even if clients are also
taking input from others.
MANAGING RESOURCES
The financial planning professional must
have enough clients to ensure the presence
and sustainability of all the necessary
resources to run the practice, from support
sta to the oces and technology. In other
words, the financial planning professional
must either be able to aord to directly hire
the sta and purchase the requisite tools or
contract with a company on whose behalf
the professional works.
MANAGING ETHICS
AND COMPLIANCE
The financial planning professional
has regulatory responsibility for all the
recommendations made and must ensure
that all client work follows the ethical and
legal standards that apply.
MANAGING THE TEAM
The financial planning professional must
be able to delegate, oversee, train and
coordinate the team so that all client work
is properly completed.
19
Career advancement within the typical
financial planning practice career track
occurs at varying speeds; it is highly
dependent on an individual’s capacity,
skill set, experience level and ability to
attract a client base. The financial planner
may gradually progress through stages of
responsibility and experience illustrated in
the table on page 16, moving from technical
positions, such as Analyst or Paraplanner, to
service positions, such as Financial Planner
or Financial Advisor, to eventually operating
a practice as a Lead Advisor or owning a
practice as a Principal/Partner. This type of
career track can be a very good fit for those
who have little or no work experience in
financial services and who seek to be trained
and mentored more gradually.
Financial planners who excel at business
development and are able to build a client
base rapidly may find that they achieve Lead
Advisor or Principal/Partner status quickly.
This career trajectory is normally the result
of an individual having a lot of experience in
a related field, such as taxes or law, and/or
having an existing client base from a previous
career, perhaps as a teacher or a realtor, that
they could use to launch a new practice.
Many companies provide general training
to aspiring financial planners through
structured programs. This training allows
financial planners to develop the skill set and
experience needed to make well-informed
and strategic decisions regarding the
direction of their careers, whether joining
an existing practice or building a practice of
their own.
20
Financial planning
professionals who wish
to own or operate a
practice spend 2 to 4
years of their careers
acquiring the necessary
technical skills, licenses
and designations before
embarking on the
process of building a
practice. This training
stage corresponds
with the Analyst and
Associate Advisor stages
of the traditional financial
planning career track.
Financial planning
professionals who own
or operate practices
spend many years
attracting clients and
building a process for
servicing those clients.
This practice-building
stage corresponds
to the Lead Advisor/
Managing Director stage
of the traditional financial
planning career track.
Some financial
planning professionals
with large, mature
practices also embark
on the process of
building a team of
professionals that
collectively services
clients. This team-
building stage
corresponds to the
Principal/Partner
stage of the traditional
financial planning
career track.
PRACTICE-BUILDING TEAM-BUILDINGTRAINING/ENTRY
21
TYPICAL STAGES OF BUILDING A FINANCIAL PLANNING PRACTICE
I ENJOY
GETTING TO
KNOW CLIENTS
ON A PERSONAL
LEVEL.
Q. What is a typical day like for you at
your firm?
A typical day consists of me responding
to client emails, placing trades in client
portfolios, team meetings with fellow
advisors and my manager, and phone
or video appointments with clients and
prospective clients. I enjoy getting to know
clients on a personal level and showing them
the value of partnering with me here at
Vanguard. Receiving positive client feedback
regarding our previous experiences is one of
the most rewarding aspects of my role as a
financial planner.
Q. Can you describe a favorite client
experience where you think you made a
dierence in the client’s life?
One of my favorite experiences as a financial
advisor is working with a woman who is
the primary provider and caregiver of her
family. Her husband has had several medical
complications and is not able to help out
much either physically or financially. She
came to me worried that they would not
NEAL
HANSEN, CFP®
have enough saved for retirement and make
it through their lifetimes. I was able to work
with her to come up with a budget and
a financial plan to make sure she and her
family could be financially sound over the
long run.
Q: Why would you recommend the
financial planning profession?
This profession provides a rewarding
career that serves those in need and helps
people accomplish their financial goals. This
profession can be challenging and never has
a dull moment. I recommend it to those who
want to do good, serve others and build
long-lasting relationships.
Financial Advisor
Vanguard Personal Advisor Services
Scottsdale, Arizona
22
Typical Structure of
a Financial Planning
Department or Division
Within a Financial
Services Company
Companies that provide financial planning
services employ many dierent strategies and
serve a diverse group of clients. As a result,
there are a variety of possible organizational
structures. Each major function within a
company or a division creates opportunities
for specialized teams and, consequently,
specialized careers and career paths.
A typical structure has four major
“departments,” teams or functions, as shown
in the graphic above and described here.
Financial Planning: The Financial Planning
department is also called Advisory or Wealth
Management and is the primary destination
for financial planning professionals. Most
financial planning professionals will join the
Financial Planning department and spend the
majority of their careers working on this team.
Investments: Investment management is a
component of financial planning advice. In
an over-simplified explanation, investment
management is working with money and
financial planning is working with the people
who invest the money. Financial planning
cannot be implemented without investment
management. Many companies have a
separate Investments department or team.
Operations: The Operations department
handles accounts, data, reports, forms and
processes. This team supports financial
planners with tools and processes to help
them achieve client service goals. In other
words, this department provides financial
planning in a supporting role.
Company Administration: The Administrative
department manages the company’s
resources, finances and human capital, as
well as other aspects of the business.
FINANCIAL
PLANNING
COMPANY
ADMINISTRATION
INVESTMENTS OPERATIONS
FINANCIAL SERVICES COMPANY
23
Starting a Financial
Planning Career in
Operations
While it is reasonable for aspiring financial
planners to expect to start their careers in the
Financial Planning department, some financial
planning companies believe that financial
planning professionals are more eective
if they have a complete view of the client
service process. Following this philosophy,
they recruit their entry-level professionals at
the Client Support Associate position (CSA)
on the Operations team. CSAs are responsible
for maintaining advisor and client files,
generating client reports, contacting clients
to provide or obtain updated information,
scheduling meetings with professional sta
and troubleshooting.
Professionals intending to start out at the
CSA position as a step toward becoming a
financial planner should make their ambitions
known during the interview process and
ensure that the company oers a career track
leading from CSA to the Financial Planning
department. Many companies consider
the CSA position to be part of a separate
Operations career track, and the transition
may not be easy. Clear dialogue about career
tracks during the interview process is helpful
to both the professional and the company
as it establishes expectations, timelines and
milestones for success.
Starting a Financial
Planning Career in a
Virtual Advice Center
Virtual advice centers are becoming more
and more popular with both consumers and
financial services companies, such as brokerage
firms. Many recent graduates and career
changers are recruited to join such companies,
and they can be a great opportunity to start or
grow a career in financial planning. Typically,
the virtual environment allows planners with
less experience to assume a more active role
with clients sooner than perhaps other types of
companies.
Employers tend to provide very formal and
organized training programs. New employees
tend to be hired in cohorts and complete a
training and onboarding program together.
While these training programs vary by firm,
a new employee can expect to spend their
first few months focused on passing required
licensing exams. New hires will also learn
the company’s client service model, the
steps of the financial planning process and
communication skills for interacting with
clients. This is achieved in part by having the
new hire listen in on client calls.
Once a new hire has obtained the necessary
licenses and completed the company’s basic
training, their primary responsibility is to take
phone calls from existing customers and
assist them with a wide variety of personal
financial matters, such as stock trades,
investment portfolio adjustments and account
distributions. New hires tend to quickly gain
customer service experience and are exposed
to a wide variety of financial planning services
and financial products.
Typically, after reaching skills and experience
benchmarks, new hires get promoted from
general client service to more specialized roles
and services, such as working with specific
groups of clients. As a financial planner develops
more skills and competencies, they have
opportunities to move into a team leadership
role or transition to another part of the company
where they have a specific interest.
24
Q. Why did you decide to become a
financial planner?
To help women become the CFO of their
personal finances, to help more women see
it as a viable career path, and to make an
impact in an area that plays a large role in
the daily lives of each and every individual.
Q. How did you get started in the
profession?
I started with a local credit union as a youth
outreach specialist focused on collegiate
financial literacy. It was through that role
that I developed a skill for making financial
literacy concepts more palatable and fun. It
was also through that role that I developed
an interest in financial planning. From
that role, I transitioned into the wealth
department of the credit union, became fully
licensed and supported 2 financial advisors
for 2 years.
CAMILLE
D. YORK, AAMS®,
CDFA®
Q. Why did you choose this business
model?
After learning and training within the credit
union, I joined Raymond James’ Advisor
Mastery Program (AMP) to further develop
my skill set and industry knowledge. It
is through this program that I gained
access to top leadership, specialized
coaching, advisory board participation and
input, and the opportunity to pilot new
resources, products and services for the
firm. I now have the support, resources and
independence to run my practice how I see
fit and serve my clients in a way that is both
meaningful and impactful on a daily basis.
Financial Advisor
Raymond James
Tampa, Florida
25
I NOW HAVE
THE SUPPORT,
RESOURCES AND
INDEPENDENCE
TO RUN MY
PRACTICE HOW
I SEE FIT.
26
• Train and study for licensing
• Assist clients with opening
accounts or account
transfers
• Answer routine client
questions and service
requests
• Assist clients with more
advanced products and
services
• Assist larger clients and
more complex client
cases
• Manage premier client
relationships and most
complex client cases
• Lead the branch team
and manage the
responsibilities and
performance within
the team
FINANCIAL CONSULTANT
SENIOR FINANCIAL
CONSULTANT
BRANCH MANAGER
Starting a Financial
Planning Career in a
Branch Oce
Financial services companies such as
brokerage firms and banks hire financial
planners to become part of a team at the
company’s local branch oce. The advantage
of working in a branch is the steady flow
of prospective clients that creates an
opportunity to develop a practice faster than
if the planner has to find clients on their own.
The typical career path in a branch oce
progresses from Financial Consultant, to
Senior Financial Consultant and finally to
Branch Manager. The table below lists major
responsibilities that are typical for each role
in a branch oce.
Specialist Positions
In addition to the traditional financial
planning career track, some companies
oer professionals opportunities to become
specialists. The major functions within a
practice can be broken into four major
components, and each component oers
opportunities for specialization.
Relationship support specialty: The
relationship component of a practice
prioritizes empathy, communication skills and
the ability to establish and maintain trusted
relationships. Financial planning professionals
are coaches for their clients. To be eective
coaches, they need to cultivate trusted
relationships with clients, where each client
feels understood, supported and motivated
to implement the advisor’s recommendations.
The relationship support function is part
of the traditional financial planning career
track under the title of Service Advisor or
Financial Advisor. Many professionals choose
to specialize during this step of the career
path. Some planners also remain in this
position long-term, choosing to focus on the
client interaction and collaboration without
the pressure and responsibility of the Lead
Advisor role.
Technical support specialty: Financial
planning professionals systematically gather
knowledge and data and utilize their insights
to make sound recommendations. There are
specialized positions that focus on these
technical aspects of financial planning. These
technical specialists work on behalf of and
in support of other advisors. This specialty
emphasizes advanced technological tools and
the ability to process complex information and
navigate through challenging decisions.
The Paraplanner position oered by some
companies provides specialized technical
support to Lead Advisors and Service
Advisors. Paraplanner responsibilities include
data gathering, modeling, case design,
scenario building, plan development and
presentation development. These activities
can be a step in the training toward becoming
a Lead Advisor, or they can be a good long-
term fit for someone who prefers to focus on
analytical work. Some companies also have
insurance planning specialists who focus on
risk management.
Management specialty: Financial planning
professionals work on a team, using the
help of supporting employees to provide
administrative, technical, compliance and
other services that all ultimately benefit the
client. The ability to create, maintain and
manage such a team is important for the
practical success of a financial planner in their
work with clients.
Some companies oer positions in
management that benefit from but do not
require experience in financial planning.
Such management specialties may exist in
marketing, human resources or technology.
Business development specialty: “Business
development” is an umbrella term used by
many professions to capture all activities
associated with attracting future clients.
Financial planning professionals meet new
clients through a combination of marketing
(undertaken by themselves or their company)
and referrals from existing clients and
trusted professionals (e.g., CPAs). Business
development favors skills in marketing,
networking, and your reputation for
competency and ethics.
Some companies have a Business
Development Ocer position that focuses
exclusively on attracting clients to the
company. Such specialty positions are
typically held by experienced advisors,
although a professional with a significant
reputation in another company may be a
successful Business Development Ocer by
virtue of their access to a client base.
27
Exploring Other
Financial Services
Careers
Finally, there are a variety of businesses
that support financial planners and their
companies by providing tools or services
that allow professionals to more eectively
and eciently serve their clients’ needs.
These companies oer aspiring financial
planning professionals a glimpse of the
financial planning world, allowing them to
determine if a financial planning career is
the right fit. Here are some examples of
these types of companies:
28
FinTech companies: Create
tools, technology or software
that makes time-consuming
tasks more ecient
Custodians and platform
providers:
Consolidate the
operational needs of a large
number of companies to
provide resources for growth
and client service
Asset managers: Provide
asset management solutions to
companies, freeing up advisors
to spend more time with clients
Third-party administrators
and record keepers:
Assist
companies with their own
retirement plan creation,
maintenance, compliance and
fiduciary responsibilities
Industry vendors and
wholesalers:
Market products
and services to companies for
client use
Q. What do you love the most about your
career in this model?
What I love most about the fee-only model
is that it allows me to feel like I am being
transparent about how our firm gets paid.
I would recommend this model because
it’s rewarding to know you’re getting paid
directly by your clients for the services you
provide.
Q. What’s the most rewarding part of
being a CFP® professional?
The most rewarding part of being a CFP®
professional is knowing that the credential
did not come without time and a dedication
to earning it. There are many ways to
become a financial advisor, but there’s only
one way to become a CFP® professional
and that provides added confidence when
discussing with potential clients what makes
me qualified to assist them in reaching their
financial goals.
DARIAN
BILLINGSLEY, CFP®
Q. What elements of the job make it a
satisfying career?
Working with people is the most satisfying
element of being a financial planner. You
get to really see the impact you can make
in a person’s life just by assisting them with
developing a plan for their financial future.
As a financial planner, you get to expand
your knowledge on a regular basis and use
that knowledge to positively impact others.
Advisor
Financial Symmetry
Raleigh, North Carolina
29
YOU GET TO
REALLY SEE THE
IMPACT YOU
CAN MAKE IN A
PERSON’S LIFE.
In this chapter, you will learn about:
COMPANIES
THAT HIRE
FINANCIAL
PLANNERS
CHAPTER THREE
Types of companies that
employ financial planners
How company characteristics
can impact your financial
planning career
Questions to ask when
researching potential
employers
30
The financial services industry is a diverse
ecosystem of companies that assist
consumers with financial products and
services used in the financial planning
process. Within this ecosystem, many
companies oer financial planning services
and hire financial planners (although they
sometimes call them financial advisors) to
deliver these services to clients. An aspiring
financial planner can find a wide variety of
training and career opportunities across
the entire industry. It is important for new
planners to understand the underlying
structure of the industry as well as the
dierent characteristics of potential
employers.
31
Company Characteristics
A career is a long-term commitment.
When looking for a future “home” for your
financial planning career and comparing
various companies, be sure to familiarize
yourself with the nature and strategy
of each company. Here are some key
questions to ask as you conduct your
research or sit for interviews:
• Vision: What will the company look like
in 5 years? In 10 years? What role does
financial planning play in the future of
the company?
• Mission: Why does the company exist?
What does it contribute to the lives of its
clients and team members, and what does
it bring to its community? What is a day
in the life of a financial planner like at
the company?
• Strategy: What makes the company
successful in the marketplace? What
dierentiates it from its competitors?
• Optimal Clients: Which clients does the
company attract? How diverse is its client
base today, and how diverse is it likely to
be tomorrow?
• Growth: How does the company grow and
attract new clients? What role do
individual financial planners have in the
growth of the company?
• Culture: What is the best way to describe
the company culture? Which values
guide it?
These questions are fundamental
to understanding each company
and how it views the financial
planner position in the context
of its overall goals. For additional
questions to ask in a job interview,
go to page 55 in the Appendix.
MISSION
GROWTH
VISION
CULTURE
STRATEGY
OPTIMAL CLIENTS
Financial Planning
Services Within Large
and Small Companies
Financial planners can find many
opportunities for growth and career
satisfaction in large, mid-sized or small
financial services companies. Large financial
services companies are engaged in many
lines of business, providing insurance,
banking, investment, credit and even
technology services under one brand or
through a portfolio of brands. Within this
company structure, financial planning is only
one of the points of contact between the
client and the company. Such companies are
some of the largest employers of financial
planners in the U.S. Mid-sized and smaller
financial services companies may oer fewer
services and lines of business, but there are
still ample opportunities for a successful
financial planning career within these
companies.
32
The strategy of a larger financial services
company can be more complex. It is able to
refer clients from one part of its business to
another so that finding clients for financial
planning may be easier thanks to synergies
across business lines. For example, a
company client who receives investment
products, such as mutual funds, may decide
to get financial planning advice from the
same company. The company invests
in many dierent businesses, including
financial planning services. As a result, the
consumer needs may be fully addressed at
one firm, and the company brand may be a
magnet for more clients.
While financial planners at larger firms may
focus primarily on the financial planning
aspect of the client relationship, financial
planners at mid-sized and small financial
services companies may have opportunities
to serve their clients in a variety of ways.
The mid-sized and smaller financial services
companies are typically not structured in a
way that separates products and services
oered to clients. This means that financial
planners who work at mid-sized and smaller
companies will likely have the opportunity
to expand their knowledge base beyond
the financial planning process, sometimes
handling operational issues, educating
clients on specific product lines, or helping
the client find other financial professionals
that specialize in meeting their needs.
In short, your career will vary based on how
financial planning is integrated into the
company’s business structure and strategic
priorities. Larger companies where financial
planning is oered as one of multiple lines
of business tend to have many dierent
departments and divisions, providing
opportunities for a variety of career tracks.
Aside from financial planning, these tracks
may include financial planning support, asset
management and product management. In
smaller companies where financial planning
may be the primary service, you typically
have an opportunity to develop deep
knowledge of the company, its business and
its financial planning services.
33
As you begin your financial planning career,
your employer will make sure you satisfy these
requirements and will guide you through the
licensing process. Still, we want you to understand
the basic forms of licensing.
Although there is no specific “financial planner”
regulation, many of the services that financial
planners perform are highly regulated to promote
investor protection. Many financial planners provide
investment advice for compensation, which
constitutes “investment advice” that is governed by
the Investment Advisers Act of 1940. A company
providing investment advice with assets above
a certain threshold must be registered as an
investment adviser (RIA) with the federal Securities
and Exchange Commission (SEC). To practice
as an investment adviser representative (IAR), a
financial planner must be registered in the states
where they have a place of business. To become
registered, the financial planner must pass the
Series 65 examination (Uniform Investment Adviser
Law Examination), which is a North American
Securities Administrators Association (NASAA)
examination administered by the Financial Industry
Regulatory Authority (FINRA). An individual who
currently holds a qualifying professional designation
in current and good standing may request a
waiver of the required exam. CFP® certification
is one of the qualifying designations; therefore, a
CFP® professional may waive out of the Series 65
examination (but still would need to meet the other
requirements of licensure).
As an IAR, you have a fiduciary obligation to your
clients, which means that you are required to always
make investment decisions and recommendations
that are in the client’s best interest. This
responsibility, known as the “fiduciary standard,”
creates a bond of trust between clients and their
advisory professionals and is a source of our
industry’s success. The fiduciary standard applies
both to the individual IAR and the RIA firm.
Many financial professionals carry other FINRA
licenses in addition to the Series 65. Most common
is the Series 7 (General Securities Representative)
license, which allows a professional to sell nearly all
types of investment products to clients and receive
commission-based compensation.
Professionals who have a FINRA license are licensed
as registered representatives of a broker-dealer
(i.e., a company that is licensed to trade securities).
The Financial Services Industry Channels section
below provides more information on broker-dealers
and lists several examples of these companies
which may already be familiar to you. FINRA has
an additional layer of regulatory and education
requirements for professionals who carry such
licenses.
It is common for registered representatives of
broker-dealers to also be registered as IARs. Broker-
dealers also may be aliated with RIAs. However,
some RIAs are not aliated with a broker-dealer.
Some of these RIAs refer to themselves as “fee-
only” to signify that they are not aliated with
a broker-dealer and do not receive sales-related
compensation.
Finally, financial planners also may have insurance
licenses that allow them to provide insurance advice
and sell insurance products. Insurance licenses are
regulated by the states and have their own exams
and requirements.
Your company will have an important role in
overseeing your compliance with state and federal
regulations. The company that employs you
will have policies and procedures, and your firm
will require you to abide by those policies and
procedures.
Importantly, the nature of a company and the
company’s relationship with its clients and team
members is not solely determined by the company’s
regulatory structure. Rather, a company’s
approach to client service and employee relations
are functions of leadership, culture, history and
company structure, each of which will be unique
to the company and should be explored during the
interview stage.
34
To practice as a financial
planner, you will also need
to be aware of the licensing
that is required at the state
and federal level, as well as
the relevant regulations.
LICENSING TO START
YOUR CAREER
CFP®
CERTIFICATION
IS THE BEST
PATH FORWARD
TO BECOMING
A FINANCIAL
PLANNER.
Q. Why did you choose this particular
business model and firm?
We get to help clients almost from cradle
to grave—we’re helping them with college
planning, insurance, mortgages. We’re able
to do everything comprehensively across
the board in one entity, one organization.
It’s also important to me to work at a firm
that agrees to provide financial planning
with a fiduciary standard of care. I enjoy that
we have the independence to be objective
and recommend what’s best for the clients
without having to manage sales-related
conflicts of interest. It just feels much more
genuine, authentic and natural for me and
my personality.
Q. How has CFP® certification made a
dierence in your career?
I chose to pursue the CFP® certification
because it was the next phase in a
commitment to the field of financial planning
and to doing my best for my clients. When
combining the educational component
BRETT
PERLMAN, CFP®,
ChFC®
with the experience requirements, CFP®
certification is the best path forward to
becoming a financial planner. The most
rewarding part of being a CFP® professional
is being part of a group that’s made a
commitment to deliver quality advice and
education to clients.
Q. Why has financial planning been a
satisfying career?
I became a financial planner because
it oered me the opportunity to make
a positive impact in others’ lives while
pursuing something that I truly enjoy. I
am proud of making a positive dierence
in the lives of others. These are dicult
decisions and families are leaning on a CFP®
professional to guide them in the right
direction. It is humbling to be able to share
in those experiences.
Director, Financial Planning
Edelman Financial Engines
Boca Raton, Florida
35
Financial Planner
Compensation Methods
Two of the compensation methods for
financial planners are salaries and payouts.
Many companies hire financial planners as
employees who work on behalf of the company
and receive salaries, incentive compensation
and benefits. The previous Financial Planning
Practice Career Track section contains detailed
compensation information for the typical stages
in a financial planning career on page 16.
Other companies elect to compensate their
financial planners (or at least their senior
financial planners) based on a percentage of
the revenue they generate. This payout method
rewards productivity and business development
success. The most significant risk with the
payout method resides with new advisors.
In the early years when professionals are still
establishing their reputations and client bases,
income may be quite low, though they may
achieve much higher levels of income in the
mature stages of their careers than they could
with a salary.
Most companies oer some period of time
where compensation for new advisors is
guaranteed through salaries. In companies
using the payout method, this period tends
to be short (1 to 3 years) and can vary by
firm. In salary-based companies, guaranteed
compensation is the norm for rookie and
seasoned professionals alike.
Centralized and
Decentralized Companies
One of the most important characteristics
dierentiating companies that oer financial
planning services is the degree to which
management decisions are centralized or
decentralized (i.e., made locally). Large
national companies may allow local oces
to make most of the important business
decisions in accordance with their local
markets. As a result, their local oces may
have diverse strategies, company cultures
and client bases. Decentralization also means
that there can be significant dierences in
the career tracks, training, compensation and
management of financial planning positions
between local oces and even between
teams at the same oce.
In contrast, there are also large companies
where the “home oce” (i.e., headquarters)
makes almost all business decisions. These
companies are very uniform as a result, with
local oces sharing a similar culture and
employment practices.
Centralized versus decentralized decision-
making is a characteristic most useful when
dierentiating between larger companies
with multiple oces, as smaller companies or
companies with only one oce are likely to
have uniform management structures.
36
Financial Services
Industry Channels
The current structure of the financial
services industry is the result of a historical
process shaped by the evolving business
characteristics of the companies making up
the industry. Industry channels (or business
categories) are often used to describe this
structure.
Financial planning as a client service
emerged simultaneously across multiple
industry channels and was embraced by
companies with varied backgrounds. The
table that follows oers further detail on
each of these industry channels.
While having a firm grasp of the
characteristics that define dierent
industry channels can help you better
understand the structure of the companies
you are considering for employment, the
information in the table is not meant to
imply that one business channel is better
than any other. You can find an array of
opportunities to be a financial planner in
any channel.
Additionally, it’s important to understand
that the table reflects the main channel,
but not all industry channels in financial
services, and that some companies
operate in multiple channels.
37
38
FINANCIAL SERVICES INDUSTRY CHANNELS
5
Wirehouse
National
& Regional
Broker-Dealer
Hybrid RIA
Independent
Broker-Dealer
(IBD)
44,949
43,580
28,101
58,419
Four national
broker-dealers with
a large Wall Street
investment banking
and institutional
presence and
strong penetration
in metropolitan
money centers.
National and regional
financial services
companies with retail
financial advisors;
national broker-
dealers targeting
clients with moderate
wealth; and boutique
firms with a localized
presence.
Independent
practices with both a
registered investment
advisor and an
aliation with a
broker-dealer. RIA is
owned and operated
by the advisor, not
the broker-dealer.
Advisors own and
operate independent
businesses and
aliate with a
broker-dealer as
an independent
contractor. Advisor
assumes cost
of running their
practice in return for
a higher payout.
Wide range of firm
sizes, from small
boutiques to 1,000+
advisors. Often have
strong regional and
community ties.
Varied institutional
and investment
banking services,
depending on the
firm. Few or no
proprietary products.
RIA assets are
typically held at an
RIA custodian, but
advisors have the
option to custody
assets with or through
traditional IBDs. A
growing number of
IBDs have launched
RIA platforms to
attract and retain
large independent
practices.
Fragmented
advisor field with
small branches
of 1 to 5 advisors.
Consolidation has
shifted greater
advisor and asset
market share to the
largest firms.
For large firms,
centralized home
oce training
programs recruit
and train rookie
advisors.
Recruiting of
rookie advisors
occurs at the
individual
practice level.
The dually
registered model
allows advisors
to recruit or
acquire advisors
from both the
broker-dealer
and RIA models.
Recruiting of
both rookie
and established
advisors occurs
at the individual
practice level.
• Ameriprise
• Charles Schwab
• Fidelity
Investments
• Edward Jones
• Cadaret Grant
• LPL Financial
• Kestra Financial
• Raymond James
• Benjamin F.
Edwards Wealth
Management
• BentOak Capital
• Carson Group
• Mariner Wealth
Large national advisor
and branch advisor
networks. Control
largest percentage
of industry assets.
Advisors operate
at highest level of
productivity.
Centralized
home oce
training programs
recruit and train
rookie advisors
and then groom
them within
established
teams.
• Bank of America/
Merrill Lynch
• Morgan Stanley
Wealth
Management
• UBS
• Wells Fargo
Advisors
CHANNEL DEFINITION
CONTINUED ON THE NEXT PAGE
CHARACTERISTICS
# OF
ADVISORS
COMPANY
EXAMPLES
NEW ADVISOR
RECRUITING
39
FINANCIAL SERVICES INDUSTRY CHANNELS, CONTINUED
Independent
RIA
Insurance
Broker-
Dealers
Retail Banks
36,642
55,503
24,478
Independent
practices with
a registered
investment advisor
and no broker-
dealer aliation.
Full-service
brokerages within
an insurance
company, ranging
from traditional life
companies to quasi-
IBDs.
Advisors operating in
retail bank branches.
Excludes trust
departments and
private banks.
National distribution
capabilities through
historical career
agency network.
Strong proprietary
insurance and
investment products,
but often use third-
party sub advisors.
Includes firms with
both open and closed
insurance product
selections; however,
nonproprietary asset
management is
always available.
Banks vary in size
from national banks
to community
banks and credit
unions. Small
banks, thrifts and
credit unions often
outsource broker-
dealer functionality
to third-party
marketing firms.
Advisors receive
training in both
risk management
and investments.
Some may focus
only on risk
management
(insurance)
while others
create more
comprehensive
plans, including
investments.
Advisor hiring is
typically part of a
bank’s centralized
HR process.
Rookies may start
out by servicing
small clients to
help the bank
manage the high
volume from core
banking referrals,
allowing senior
advisors to focus
on high net worth
clients.
• Northwestern
Mutual
• NYLIFE
Securities
• MML Investor
Services
• Prudential
• BMO Harris Bank
• First Republic
• Truist
• U.S. Bank
Advisors operate
with the highest
degree of autonomy
with no regulatory or
policy oversight by
a home oce. High
degree of variety
across independent
practices and
wide geographic
dispersion. Leverage
clearing firms, banks,
service agents
and brokerages to
conduct trading,
custody of assets and
recordkeeping.
Recruiting of
rookie and
established
advisors occurs
at the individual
practice level.
• Edelman
Financial
Engines
• Facet Wealth
• Financial
Symmetry
• Yeske Buie
CHANNEL DEFINITION CHARACTERISTICS
# OF
ADVISORS
COMPANY
EXAMPLES
NEW ADVISOR
RECRUITING
5. Adapted from the 2020 U.S. Advisor Metrics report by Cerulli Associates. Charles Schwab and Fidelity are usually grouped into Cerulli’s Direct channel
reflecting their self-directed brokerage history, but characteristics of their large and growing advisor teams most closely align with this model. Raymond
James and Ameriprise oer both employee and independent aliation options. LPL Financial serves the IBD, Hybrid RIA and Independent RIA channels.
Virtual Advice Channels
Like many other industries, financial
services is constantly evolving with
advances in technology and changing
consumer trends. In addition to the
established business channels in the
previous table, virtual advice channels have
been growing rapidly and can represent
an attractive career opportunity. These
channels are comprised of virtual advice
centers where a financial planner is able to
establish a virtual practice by interacting
with clients primarily over the phone or
web conferencing, while still being able
to work closely and hands on with clients.
Companies that operate in the virtual
advice channel include Vanguard, Charles
Schwab and Facet Wealth.
Final Thoughts
on Industry Structure
The financial services industry is a rich
ecosystem of opportunity, and there are many
business models and types of companies that
hire financial planners. We strongly encourage
financial planning job-seekers to study the
industry, determine which characteristics are
most appealing to them, and then use this
chapter to carefully research and interview the
companies they are considering as potential
homes for their careers.
40
Q. What do you love the most about your
career in this model?
Working at an independent RIA aorded me
incredible opportunities at such an early
stage in my career. It has given me the
opportunity to learn about all the dierent
aspects of financial planning and business
development and how each department works
together to create a successful team for our
clients. I think that the structure of our firm also
encourages young professionals to learn from
our peers, managers and advisors, to become
more educated in the field, and to be confident
in ourselves and our abilities as a firm.
I would recommend working at an
independent RIA because of the flexibility
it aords both as a financial planner acting
in the best interest of your clients, as well
as the flexibility it aords you in your own
career and growth. As an RIA, we are not
beholden to any one set of products and can
truly make independent recommendations
that are in the best interest of our clients.
Q. Why did you choose to pursue
CFP® certification?
When I started out in financial planning, I had
little experience in the industry and had a lot
to learn. I decided to start taking classes to
TAYLOR
STATHIS, CFP®
meet the CFP® certification requirements as
a way to learn more about the dierent areas
of financial planning outside of what I was
learning while doing my job. Additionally,
as a Client Relationship Manager, I am the
primary point of contact for our clients.
As a young woman in the industry being
tasked with handling relationships with high
net worth business executives, athletes and
business owners, it is important for me to be
able to prove that I have the background and
credentials to support the position that I am
in. Obtaining the CFP® certification as soon
as I was eligible was very important to me
because it helped verify that although I am
young, I do have the knowledge and ability
to excel as a financial planner committed to
acting in my clients best interests.
Q. What do you think is the biggest
misconception about financial planning
careers?
That it is mainly based in math, numbers
and economics. While those are obviously
very important parts of the career, there is
so much more to it than that. As a financial
planner, you use writing and critical thinking
skills, do research, and are tasked with
building and maintaining relationships.
Client Relationship Manager
GM Advisory Group
Melville, New York
41
OBTAINING
THE CFP®
CERTIFICATION
AS SOON AS
I WAS ELIGIBLE
WAS VERY
IMPORTANT.
In this chapter, you will learn about:
WHAT’S
THE RIGHT
FINANCIAL
PLANNING
CAREER
PATH FOR
ME?
Q.
Q.
Q.
CHAPTER FOUR
Starting a career in financial
planning, whether it is your
first career or a career change
How to obtain
CFP® certification
Where to find financial
planning jobs
Is this your first career, or are you
changing careers?
Have you already earned your
CERTIFIED FINANCIAL PLANNER™
certification?
Do you already know that you wish
to develop your own practice, or
would you prefer to explore the
profession before making that
decision?
42
While financial planning is a relatively
young, emerging profession, advancements
in the financial services industry have
caused it to be a rapidly growing one.
There are many opportunities to develop
a successful financial planning career and
find personal fulfillment while meeting the
variety of expectations inherent to the
nature of the work.
Your answers to the following key questions
can help guide you toward the best choice
for how and where to begin your financial
planning career:
Financial Planning as
Your First Career
If financial planning is your first career, you
will find that this industry is eager to recruit
your talent and energy. Financial services
companies actively recruit candidates for
financial planning internships, entry-level
positions and training programs.
Financial Planning Internships: A good
place to start when looking for a financial
planning internship is the CFP Board Career
Center, or the career oce of your college
or CFP Board Registered Program. You may
also reach out directly to companies you
have identified through your own research
to ask whether they oer an internship
program.
Internships can be paid or unpaid and can
provide you with the knowledge, skills and
experience that make you a more attractive
candidate. An internship can also provide
you with the experience hours necessary to
obtain CFP® certification.
The experience gained from the internship
will help you learn more about your own
preferences and shape where you pursue
future growth, either with that company
or in an entirely dierent type of company
that better fits your preferences. As you
gain more experience, you can become
more selective in finding a job that fits your
interests and skillset.
In addition to traditional in-person
internships, another unique internship option
is the Financial Planning Association’s
(FPA®) Virtual Externship. This internship
is completed entirely online and oers
participants the opportunity to gain
experience from a variety of dierent firms
and financial planning experts.
43
Entry-Level Positions: The entry-level position
for financial planners can be called several
dierent titles. Among others, companies
use: Analyst, Consultant, Support Advisor or
Senior Analyst. Some companies combine
the first two steps of the career track as
presented in the Careers in Financial Planning
chapter of this guide and merge the Analyst
and Associate Advisor roles.
Analysts (entry-level future financial planners)
are expected to learn how to create financial
plans, at first with heavy supervision and
guidance. They also help the Operations
team with tasks such as client onboarding
and data entry. Since they have limited client
interactions, Analysts are often instructed to
treat their more experienced colleagues as
clients and strive to exceed their expectations.
Analysts can be fresh out of university, and
many companies have internship programs
that assign interns similar responsibilities to
those of an Analyst. Some companies jokingly
use the term “sponge” to describe their
Analysts, as they are expected to absorb as
much information as possible about financial
planning and company-specific processes
during their first few years at the company.
Practice-Building Training Programs: If you
have already made up your mind that you
want to build a practice of your own, there
are large companies that actively support
and encourage that process through training,
resources and marketing. Please review the
discussion of industry channels in the previous
chapter for the names of some of these
practice-building companies, on pages 38-39.
Practice-building companies typically have
formal recruiting and training programs that
oer trainees 1 to 3 years of instructional
classes, guidance and mentoring from
experienced professionals. These programs
often provide financial support in the form of
a salary and benefits. Upon graduating from
the program, trainees usually are expected to
develop new business (i.e., relationships with
new clients) through networking and other
strategies and assemble a group of clients
large enough to support a practice. At this
point, the salary is usually phased out and
replaced by a payout (variable compensation
linked to the revenue generated).
Financial Planning
as a Career Change
Many successful financial planners begin
their careers in other professions or fields,
particularly the fields of public accounting
and law. Certified Public Accountants (CPAs)
and attorneys who focus on taxation or estate
planning often transition to the financial
planning profession, for example. In addition,
many investment professionals, such as
Chartered Financial Analysts® (CFA®), decide
they would like to work more closely with
individual clients and transition into financial
planning roles.
Successful financial planners also come from
a variety of other professions outside of
the financial services industry, particularly
from positions where they honed their skills
in working with and helping people. These
career changers can include former military
servicemembers, teachers, hospitality
professionals and retail employees.
44
FINANCIAL PLANNERS
ALSO COME FROM OUTSIDE
THE FINANCIAL INDUSTRY,
PARTICULARLY FROM
POSITIONS OF WORKING
WITH AND HELPING PEOPLE.
3 4
21
COMPLETE THE
EDUCATION REQUIREMENT.
The two-part education requirement includes completing
financial planning coursework through a CFP Board
Registered Program and holding a bachelor’s degree
or higher in any discipline from an accredited college
or university. There are multiple avenues for completing
the education requirement, both through college degree
programs and executive education programs. Certain
designations and certifications that you have already
earned may also help to meet the education requirement.
A variety of scholarships are available through the
CFP Board Center for Financial Planning and other
organizations to help fund your certification coursework.
ACCUMULATE RELEVANT EXPERIENCE.
You must complete either 6,000 hours of professional
experience related to the financial planning process or
4,000 hours of apprenticeship experience that meets
additional requirements. To pursue the 4,000-hour
apprenticeship option, your experience must be derived
by personally engaging with individual clients and under
the direct supervision of a CFP® professional.
A variety of positions in financial services companies will
enable you to meet the experience requirement. You can
fulfill the experience requirement either up to 10 years
before or 5 years after taking the CFP® exam.
PASS THE CFP® EXAM.
The CFP® exam is a comprehensive
test that consists of multiple-choice
questions completed over 6 hours.
The exam includes stand-alone and
scenario-based questions, as well
as questions associated with case
studies. Passing the CFP® exam
demonstrates that you have attained
the knowledge necessary to provide
your clients with competent and
ethical financial planning.
SIGN THE ETHICS
DECLARATION AND PASS
A BACKGROUND CHECK.
The ethics requirement is the
final step on the path to CFP®
certification. An applicant must
complete an Ethics Declaration
and CFP Board will conduct a
background check. CFP Board will
evaluate an applicant’s background
against CFP Board’s Fitness
Standards.
Obtaining Your
CFP® Certification
We encourage all aspiring financial planners
to pursue CFP® certification, also known
as the CERTIFIED FINANCIAL PLANNER™
certification. Financial planning companies
actively seek and support candidates
pursuing CFP® certification because it is the
standard of excellence for financial planners.
CFP® certification sets you apart from other
financial advisors because it signals to
clients—and potential employers—that you
have met extensive training and experience
requirements and have committed to high
ethical standards.
The CFP® certification process requires
candidates to fulfill the following
requirements (also known as the “4 E’s”):
education, exam, experience and ethics.
45
Visit CFP.net for more information on becoming a CFP® professional
Q. Why did you decide to become a
financial planner?
I always valued financial freedom. My mom
instilled a desire in me from an early age to
be financially independent. This is a very
practical and rewarding profession. I enjoy
the psychology of financial planning and
how dierent people think about money in
dierent ways. I love the relationship aspect
and being able to have a high impact on
people and their lives.
Q. Why did you decide to pursue CFP®
certification?
In achieving the CFP® certification, it’s the
stamp of approval that you are a legitimate,
competent professional in your field—
people see this as a sign that you can be
trusted. Also—with my position with Moss
Adams I can’t actually become a financial
lead, a career lead—until I have the CFP®
certification, so it’s a step I need to make in
order to advance my own career.
KELLY
GWYNN
Q. Can you explain why you picked your
current business model?
My firm is partnered with an accounting
firm. Many of our clients have an established
relationship with the tax side of the firm,
and we are able to go to market with trust
already in place. We have an edge, to service
our clients even more holistically as a tax
and financial planning team. Being in San
Francisco, there are IPOs happening all
the time, and new wealth being created,
so we’ve been able to experience helping
numerous individuals needing stock option
planning around these events—we work with
executives and early software engineers
at these companies. There is a lot of tax
complexity around these events, so I’ve seen
firsthand how beneficial it is to have a CPA
working alongside us to help guide the client
through. It’s exciting, because it relieves
some of the pressure of generating new
clients through that built-in growth process.
I can focus on serving the needs of clients,
and it just happens very naturally in this firm.
It’s substantially beneficial how this firm
structures the career path. It is very deliberate,
and they make sure that you are ready. They
support you on every step of your journey.
Paraplanner
Moss Adams Wealth Advisors LLC
San Francisco, California
46
I ENJOY THE
PSYCHOLOGY
OF FINANCIAL
PLANNING.
DEGREE:
Bachelor’s 4 years
Master’s 1 to 2 years
Ph.D. 3 to 5 years
As you can see, the first step toward earning CFP® certification is completing the
required coursework at a college or university with a financial planning program
registered with CFP Board. There are two main options for doing so: pursuing
a bachelor’s, master’s or doctorate degree in financial planning or completing a
certificate-level CFP Board Registered Program. The first option is better suited
to students who are just beginning their college education, whereas certificate
programs may be more appealing to career changers and financial services professionals who already
have a bachelor’s degree in another field. Let’s now look at these two options in a bit more detail.
FINANCIAL PLANNING DEGREE OPTION
If you are entering college and already know
that you want to pursue a financial planning
career, there are many financial planning
undergraduate and graduate programs
(including master’s and doctorate degree
programs) that are registered with CFP Board
and meet the education requirement for CFP®
certification. These programs provide you with
the fundamental education, competencies
and fluency needed for a successful financial
planning career and prepare you to sit for the
CFP® exam after graduating. Once you have
passed the exam and met the experience
requirement, you will be a CFP® professional
as well as have an academic degree in your
chosen field. If your university does not oer
a CFP Board Registered Program but you
are confident that you would like to pursue a
financial planning career, you should consider
transferring to another university that does, or
consider the certificate option.
How to Begin
CERTIFICATE OPTION
If you have already earned a bachelor’s degree
in another field and do not wish to pursue
a graduate degree in financial planning,
the education coursework requirement
for CFP® certification can be met through
a certificate-level CFP Board Registered
Program. You may also choose to explore
the certificate-level coursework path if you
are studying at a university that does not
oer a financial planning program registered
with CFP Board. These certificate programs
specialize in oering the courses and topics
you need to master to pass the CFP® exam
and become a CFP® professional, and most
can be completed within 1 year. They are also
oered in a variety of formats (e.g., in person,
online, recorded sessions, live lectures) so you
can choose the program that best suits your
learning style and your schedule.
COST: The tuition and fees to your university,
as well as the cost of living to support yourself
during your study.
TIME: The typical timeframes to complete
financial planning degrees are the same as
degrees in other fields.
COST: Program costs vary depending on the
certificate provider and the options included,
such as an exam review course. In many cases,
companies reimburse the costs associated with
completing a certificate program.
TIME: Usually 12 to 18 months, though some
programs oer accelerated options, including
self-paced study.
Find a CFP Board
Registered Program at
CFP.net/Education
47
Exploring Financial
Planning Careers
Perhaps you have been considering a
financial planning career, but you are not
quite ready to commit. It is perfectly normal
and may be desirable to explore the financial
planning career path by seeking a non-
financial planning position first. This allows
you to familiarize yourself with the financial
services industry, or a particular company,
and determine whether it is a good fit before
deciding to pursue a financial planning career
in earnest.
Many financial planning companies are willing
to hire job applicants based on their current
skill sets as long as they show a strong desire
to serve clients. These companies will then
support and assist their employees as they
pursue CFP® certification at a later date,
should they elect to follow that career path.
Many employers will provide reimbursement
for obtaining CFP® certification.
Pursuing this exploratory path toward a
financial planning career may require a
longer-term commitment because of the
limitations on your time that result from
pursuing CFP® certification while working full
time. That said, you are gaining experience,
knowledge and paychecks as you work
toward becoming a CFP® professional, so this
is an attractive option for professionals who
need a bit more time to decide if financial
planning is the right field for them.
48
Q. Why did you decide to be a financial
planner?
I decided to be a financial planner because I
saw a career that allowed me to help people
in a very meaningful way that’s based on
outcomes, that allows you over time to
have flexibility, and that allows you to make
a good living while making an impact on
people’s lives.
Q: What’s the biggest misconception about
the financial planning career in your opinion?
The biggest misconception is that there’s
one way to do it. There are so many dierent
ways to approach a career in financial
planning. And I think the other one is financial
planning is investments—but that’s not really
true. Financial planning is a process in which
you pull all the dierent strategies, tools and
tactics, and align it with clients’ objectives
to plan for the desired outcome. I think that
once someone gets into our profession, they
realize there are all of these dierent ways I
can build and be successful in this career.
MATT
AARON, CFP®,
RICP®, ChFC®
Q: If you were talking to someone who
is thinking about becoming a financial
planner, why would you recommend this
career to them?
I would recommend this career to someone
because I feel like it’s one of the most noble
things you can do. It’s as noble as being a
doctor saving lives. If you think about it, it’s
our health and our wealth that are some of
the most important things. We foster that
wealth aspect, which really allows people
to accomplish goals that are not necessarily
money goals, but money is a factor in most of
the decisions we have to make in life. Being
able to wake up daily knowing that you’re
doing noble work is extremely gratifying.
So, if you’re looking at this career, just know
that you’re about to embark on a journey of
everlasting impact that never expires.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and
its subsidiaries, including Northwestern Long Term Care Insurance Company (NLTC), Northwestern Mutual
Investment Services, LLC (NMIS), a registered investment adviser, broker-dealer, and member of FINRA (nra.org)
and SIPC (sipc.org), and Northwestern Mutual Wealth Management Company® (NMWMC), a federal savings
bank. NM and its subsidiaries are in Milwaukee, WI.
Matthew J S Aaron Jr uses Lux Wealth Planning as a marketing name for doing business as a representative of
Northwestern Mutual. Lux Wealth Planning is not a registered investment adviser, broker-dealer, insurance agency
or federal savings bank. Matthew J S Aaron Jr is an Insurance Agent of NM and NLTC. Investment brokerage services
provided as a Registered Representative of NMIS. Investment advisory services provided as an Advisor of NMWMC.
Founder & Chief Executive Ocer
LUX Wealth Planning in partnership
with Northwestern Mutual
Washington, D.C.
49
IT’S ONE OF
THE MOST
NOBLE THINGS
YOU CAN DO.
Where to Find
Financial Planning Jobs
Financial planning provides enormous
benefits to consumers. The field is growing
and the public needs more competent and
ethical professionals to help them navigate
their financial future.
You will find that your interest in a financial
planning career is not only welcome, but
eagerly encouraged. Financial planning
companies regularly advertise positions
on all the major online job-searching sites
under job headings such as Financial
Planner, Financial Advisor, Wealth Advisor,
Investment Advisor and Financial Planning
Analyst, among others. For entry-level
positions you could search for: Analyst,
Client Support Specialist, Paraplanner,
Support Advisor or Advisory Associate.
Note that some of these terms and
positions are also used in corporate finance
jobs, where the focus will be very dierent,
so be sure to confirm that a job listing
is specific to personal financial planning
before applying.
The CFP Board Career Center is the
premier job website in financial planning
that connects employers with job
seekers and enables candidates for CFP®
certification to gain the necessary work
experience through jobs and internships.
The Career Center includes a job board
where companies from around the U.S.
post positions they currently have open
for candidates who are pursuing or have
completed their CFP® certification.
Additionally, each year the Career Center
hosts virtual career fairs that enable
employers and job seekers to connect in
real time through one-on-one video chats.
These online events allow candidates from
all backgrounds and experience levels to
network and apply for open positions all
over the country.
There are a variety of other valuable resources
and sites where candidates can search for job
and internship positions, including:
• Career oces of colleges and universities
with a CFP Board Registered Program
University career centers employ a number
of advisors and counselors who can help you
find relevant employers, job and internship
postings, or recruiting events to network
with potential employers in your area.
• Financial services companies’
career websites
Most financial services companies welcome
the interest of professionals seeking a
financial planning career and maintain
a career section on their websites. You
can also compile a list of companies that
interest you and reach out directly to seek
informational interviews or opportunities.
Larger companies typically have a human
resources department that receives such
inquiries, while smaller companies are often
managed by owner-advisors who field
those requests directly.
Many companies that provide financial
planning are growing, so most companies
are consistently needing more talent to
assist with some part of the client service
process. When the companies aren’t hiring,
sometimes they are in a position to provide
good mentors, networking or even referrals
to other companies in the field that are
looking to hire. They may also provide
guidance and encourage you to take
steps that will make you a more attractive
candidate for their next round of searches.
50
• Financial Planning Association®
(also known as FPA®) career board
The FPA® maintains a career board that
contains many job postings specific
to the financial planning profession at
fpajobboard.org.
• FPA® local chapters
In addition to the national FPA® career
board, local FPA® chapters often
maintain their own job listings and
host their own localized meetings
where new professionals can network
and search for job opportunities. For
example, the FPA® of Puget Sound
lists opportunities in the Seattle area
here. A list of FPA® local chapters is
available at here.
• Other professional organizations
Organizations such as the National
Association of Personal Financial
Advisors (napfa.org) and Society
of Financial Services Professionals
(national.societyosp.org) also provide
opportunities and events for new
professionals to connect with a variety
of employers.
• LinkedIn
LinkedIn is a resource for both job
seekers and companies that are
recruiting, and many financial planning
companies prefer it for their job
postings.
• Specialized recruiters
There are several recruiting companies
that specialize in the placement of
financial planning professionals. For
example, New Planner Recruiting
(newplannerrecruiting.com) focuses on
placing new CFP® professionals in their
first job opportunities.
• Job websites
Due to the shortage of existing financial
planner talent, many financial planning
firms must also post job opportunities on
more traditional job search websites and
seek talented prospective hires there that
they can train and onboard over time.
Examples of these websites are Indeed,
Monster, CareerBuilder, Brokerhunter and
Google for Jobs.
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Q. Why did you decide to become a
financial planner?
I decided to become a financial planner
to help educate my clients to become
more financially responsible. I think this is
something that should be taught in school,
but was not, so I believe there is a need for
my advice.
Q. Why did you choose to work in this
particular financial planning business
model?
I tried a dierent model, and it did not work
for me. I love the fact that I can now focus on
taking care of clients instead of marketing. I
think this model is the best way for a young
person to enter this profession.
SHAWN
LIU, CFP®
Q. Can you describe a favorite client
experience where you think you made a
dierence in the client’s life?
One of my first clients I worked with came
to me as a single man, knowing nothing
about investing. I helped him set up a
financial plan to accumulate assets both in
and out of retirement plans. Over time, he
was able to save and invest enough to put a
down payment on a house and get married,
and I now work with both him and his wife. It
was very rewarding to see myself grow with
the client.
Vice President and
Financial Consultant
Charles Schwab
Oakland, California
52
IT WAS VERY
REWARDING TO
SEE MYSELF
GROW WITH
THE CLIENT.
53
What Can I Expect
in the Early Years?
In the early years of your professional
journey, you will most likely be performing
more support-oriented tasks in client
service or operations, where your primary
responsibilities are to leverage the time of
senior financial planners, teams or partners
while learning the business. As you build
your base of knowledge and learn the client
service processes, your responsibilities and
opportunities should expand.
It is common to start your career supporting
a financial planner by gathering and
maintaining client data, entering it into
financial planning software, and then
analyzing and examining financial plans with
the financial planner or the financial planning
team. Although most companies do not allow
their newest hires to start working with their
key clients or more complex cases, they will
sometimes allow you to work with clients
who have simpler needs or questions. Some
companies may have you start out working
with the children of primary clients who may
have less complex financial planning needs.
Sometimes these future generations will
also have a long-term relationship with the
company.
Large national companies tend to have
a distinct training program where future
advisors spend a year or two obtaining
their certifications and licenses while
attending classes and coaching sessions.
Some programs may extend up to 5
years of training. Typically, there is fixed
compensation in the form of a salary during
the training period.
In other companies, there is no formal
training program but the new professionals
are assigned to a client service team where
they receive on-the-job instruction and
coaching as they contribute to the activities
of the team. Usually, this becomes the first
step of the career track described in the
Careers in Financial Planning chapter on
page 14.
Finally, companies that provide planning
and advice through a remote or virtual
relationship with the client may also assign
new recruits to call centers or virtual teams
where they handle more basic questions as
they accumulate training and experience.
Indeed, early in your career is the opportunity
to explore a variety of roles, company types
and approaches to financial planning until
you find a fit and style that suits your needs.
To advance in the career you will need to
steadily increase your knowledge, skills and
abilities that will help the company better
serve its clients.
Where You Start Isn’t
Where You Have to Stay
With the wide variety of employers and types
of jobs, it can be overwhelming trying to
decide where to start. It’s important to keep
in mind that where you start is not nearly as
important as where you finish.
It’s not essential to find your perfect fit right
away in your first job or internship. Each
place you work should provide you with
valuable experience, education and training
that will help you learn more about your own
preferences and shape where you pursue
future growth, either with that company or in
an entirely dierent type of company.
Many financial planners started in an entirely
dierent field and changed careers. After
joining the financial planning profession,
it’s common for professionals to move
around between multiple company types
and roles until they find their best fit. This
demonstrates that regardless of your
background, there is a path for you to join
this profession.
54
Financial planning is a fast-
growing field with many
dierent career opportunities
for students, recent graduates
and career changers.
Financial planners help individuals
and families make sound financial
and investment decisions to
maximize their chances of
achieving critical life goals.
Careers in financial planning
provide many benefits, including
the personal fulfillment of
helping others, the potential
for financial rewards and the
flexibility to build the work-life
balance you want.
A wide variety of companies
employ financial planners, from
large financial services firms with
many dierent lines of business, to
small companies where financial
planning may be the primary
service. You may also elect to
build your own practice.
The traditional financial planning
practice career track enables you
to move from technical positions,
such as Analyst or Paraplanner, to
service positions, such as Financial
Planner or Financial Advisor, to
eventually operating a practice
as a Lead Advisor or owning a
practice as a Principal/Partner.
Depending on your employer,
you may be able to specialize
in a certain component of the
financial planning process.
Possible specialties include
relationship support (focused
on client interactions), technical
support (focused on research
and analysis), management and
business development.
Specific licenses and/or
professional certifications may
be required or recommended by
your employer. Most companies
will guide you through this
process and provide financial
or other support to obtain the
needed credentials.
Aspiring financial planners are
encouraged to pursue CFP®
certification. Financial planning
companies actively seek and
support candidates pursuing
CFP® certification because it is
the standard of excellence for
financial planners.
Where you start your career is
not necessarily where you will
end up. Many financial planners
will move around to dierent
companies and fill dierent
types of positions during their
careers.
KEY TAKEAWAYS
Questions to Ask
in a Job Interview
As you explore a possible career in
the financial planning profession, here
are some questions to ask to help you
better understand a company’s work,
culture, compensation and development
opportunities.
Nature of the Work
• What kind of work will I be doing?
(It would be great to obtain a job
description.)
• What is the onboarding process for
new hires?
• What does a typical week look like
for someone in this role?
• Will I be working directly with clients
or behind the scenes? What percentage
of my role involves direct work with
clients? How much time will be spent
developing and presenting financial plans?
• What licenses and professional certifications
are required and/or recommended by the
company? When will I be expected to obtain
those qualifications?
• What is the scope of the financial planning
work at the company?
Company Culture
• Does the company have a financial
planning philosophy?
• Will I be part of a team or expected to
function on my own?
• How does the company define and measure
success, both for the company and its
employees?
APPENDIX
55
Compensation Structure
Compensation methods vary across
companies. Most companies oer
guaranteed compensation to entry-level
hires or trainees, though some companies
require trainees to convert to variable
compensation (i.e., a percentage of
revenue generated) after 1 to 3 years,
once the training program is complete.
Compensation questions fit well into a
second interview, when there is already a
sense that the candidate is a good fit for
the position (and vice versa).
• What is the compensation structure for
the position? What factors determine the
starting salary?
• Does salary “phase out” as the employee
progresses, or is it always part of
compensation?
Career Development
• Is this position on a career track to
enable me to become a financial planner?
• What is the career path for a financial
planner at this company?
• How does the company support and
promote personal and professional
growth? What professional development
opportunities are available?
• Does the company oer support or
reimbursement for CFP® certification?
• Do you make accommodations for a new
employee in this role to study for the
CFP® exam?
• What opportunities are available to
learn from or work side-by-side with
other advisors?
• Is there a formal mentoring program?
How can I best find and partner with a
mentor to help me develop my career?
56
PARTICIPATING COMPANIES
AND PROFESSIONALS
The CFP Board Center for Financial Planning
thanks the following companies and individuals
for their contributions to this publication:
Abacus Planning Group
Bethany Grith, CFP®, EA, Financial Advisor
Addepar
Colin Hardy, Solutions Consultant
Ameriprise
Emily Prochnow, Senior Director
Breagan Webb, Financial Advisor
Scott Whitman, VP Talent Acquisition
AssetMark
Nikki Khraizat, VP, Human Resources
Tom McCarthy, Senior VP, National Sales
Strategy Leader
Brad Wheeler, President, AssetMark Trust
Company and Senior VP, Operations
BDF LLC
Chad Carlson, CFP®, CFA, President & Co-CIO
Bank of America/Merrill Lynch
Valerie Jones, Senior VP
Brandon Smith, CFP®, Director, Academy for
Wealth Management
Lemar Williams, CFP®, CPWA®, CTFA, CLU®,
Wealth Management Advisor
BentOak Capital
Brandon Garrett, CFP®, AIF, CIMA,
President/Wealth Advisor
Brighton Jones
Marie Padiong, Advisor
BMO Harris Bank
Jayne Hartley, BMO Wealth Management,
Head, U.S. Wealth Planning
Carson Group
JoDee Klinker, Director of Talent Acquisition
Kelsey Ruwe, Chief of Sta
IN GRATITUDE
Charles Schwab
Shawn Liu, CFP®, Vice President and
Financial Consultant
Cornerstone Wealth Advisors Inc.
Andrea Eaton, CFP®, Financial Planner
Cypress Point Wealth Management
Brandon Ratzla, CFP®, Director of
Wealth Planning
Dowling & Yahnke Wealth Advisors
Mark Wernig, CFP®, Lead Advisor, Principal
eMoney Advisor
Matt Schulte, CFP®, CLU, ChFC, Head of
Financial Planning
Edelman Financial Engines
Stephanie Albrecht, Human Resources Director
Tony Kirchhoefer, Vice President, Financial Planning
Kala Payne, Senior Manager, Talent Experience
Brett Perlman, CFP®, ChFC®, Director,
Financial Planning
Ernst & Young LLC
Ray Echevarria, CFP®, CFA, EA,
Senior Manager EY Personal Finance
Lynn Pettus, Partner, National Director,
Personal Finance
Facet Wealth
Brent Weiss, CFP®, ChFC, Co-Founder
& Chief Evangelist
Financial Symmetry, Inc.
Allison Berger, CFP®, Financial Advisor, Partner
Darian Billingsley, CFP®, Financial Advisor
Haley Modlin, CFP®, Financial Advisor
FJY Financial
Laurie Belew, CFP®, Partner &
Senior Financial Advisor
57
Garrett Planning Network
Justin Nichols, CFP®, Director of Operations
GM Advisory Group
Frank Lavrigata, CFP®, Director of
Portfolio Management
Taylor Stathis, CFP®, Client Relationship Manager
Lincoln Financial Network
Mary Sloan, VP Training
LPL
Jerey Czajka, Executive Leader Independent
Advisor Institute
Lauren Hoyt-Williams, Vice President of
Public Relations
Kraleigh Woodford, Senior Vice President
Mariner Wealth
Amy Boyer, Director of Talent Management
Tracy Hutton, CPA, Talent Manager
Moss Adams Wealth Advisors LLC
Erica Coogan, CFP®, Partner in Charge
Kelsey (Diem) Hicks, Senior Campus Recruiter,
Moss Adams LLP
Ken Evans, COO
Kelly Gwynn, Paraplanner
Mountain America Investment Services
Stewart Campbell, CFP®, AVP Wealth
Management Operations
Northwestern Mutual
Matt Aaron, CFP®, RICP®, ChFC®,
Founder & Chief Executive Ocer, LUX Wealth
Planning in partnership with Northwestern Mutual
Lauren Rusnak, Campus Programs Consultant
Alanna Rumler, CFP®, ChFC®, Financial Advisor
Orion
Hussain Zaidi, CFP®, Chief Strategy Ocer
Plante Moran, PLLC
Courtney Harrison, Senior Campus
Stang Consultant
Todd McClain, CFP®, CIMA, Partner
Private Ocean
Greg Friedman, CFP®, Founder & CEO
Raymond James
Renée Baker, Head of PCG Advisor
Inclusion Networks
Matt Ransom, CFP®, VP New Financial
Advisor Development
Camille York, CDFA®, AAMS®, Financial Advisor
Truist
Joe Sicchitano, CFP®, Senior VP
U.S. Bank
Brent Fischer, ChFC, VP of Financial Planning
Vanguard
Neal Hansen, CFP®, Financial Advisor
Sierra Huckfeldt, CFP®, Financial Advisor
Daniel Sonntag, CFP®, Personal Advisor Services
Manager
Danielle Swancey, CFP®, Financial Advisor
Development Program Manager
Wetherby Asset Management
Debra Wetherby, CFP®, CFA, CEO &
Wealth Manager
Yeske Buie
Yusuf Abugideiri, CFP®, Partner,
Senior Financial Planner
Lauren Mireles, FPQP, Partner,
Organization & Methods Manager
Lauren Stansell, CFP®, Partner,
Senior Financial Planner
58
CFP BOARD CENTER FOR FINANCIAL PLANNING
WORKFORCE DEVELOPMENT ADVISORY GROUP MEMBERS
The CFP Board Center for Financial Planning is grateful to members of its Workforce Development
Advisory Group for their contributions to this publication.
Mark Tibergien – Chair
Founder
Mark Tibergien Insights, LLC
Yusuf Abugideiri, CFP®
Partner, Senior Financial Planner
Yeske Buie
Audra Bohannon
Senior Partner
Korn Ferry Hay Group
Megan Carpenter
Chief Executive Ocer
and Co-Founder
FiComm Partners
Luke Dean, Ph.D.
Associate Professor of Financial
Planning
Utah Valley University
Chris Elliott
Vice President, HR and
Talent Acquisition
Charles Schwab
Kathleen Sindell, Ph.D.
Program Director, Finance and
Economics Departments
University of Maryland
Global Campus
Kathy Tague
Senior Director,
Field Talent Acquisition
Northwestern Mutual
Connie Thanasoulis
Career Coach, Author, Speaker
and Adjunct Professor
SixFigureStart®
Mark Wernig, CFP®
Lead Advisor, Principal
Dowling & Yahnke
Wealth Advisors
59
The Research: The CFP Board Center for Financial Planning commissioned a team of academic
scholars and industry experts to conduct research that captures the workforce development
practices of a broad variety of financial services companies as they recruit, train and develop the
next generation of financial planning professionals. Forty-two companies participated in the research
and 77 interviews were conducted with company executives, talent recruiters and new professionals
to gather robust information about financial planning careers at these firms. The research also
examined data from the Center’s Financial Planning Career Paths: Building More Sustainable and
Successful Businesses, The Ensemble Practice, Cerulli Associates and the 2020 InvestmentNews
Adviser Compensation & Stang Study.
Luke Dean, Ph.D.
Principal Researcher
Luke Dean, Ph.D. is an Associate Professor of Financial Planning at Utah Valley
University and creator of the “12 Tribes of Financial Planning.” He was named among
the 40 most influential professionals under the age of 40 by InvestmentNews. Luke
has served as the Director of Financial Planning degree programs at William Paterson
University and Utah Valley University.
Rachel (Qianwen) Bi, MBA, Ph.D. is the Chair of the Department of Finance
and Economics at Utah Valley University and an Associate Professor of Financial
Planning. Rachel is renowned for her expertise on FinTech and her experience
working with students developing innovative FinTech prototypes.
Mary Bell Carlson, Ph.D., CFP®, AFC® is the Founder of Chief Financial Mom and
an adjunct faculty instructor for the Financial Planning degree programs at the
University of Georgia and Texas Tech University. Mary has expertise in financial
therapy and experience working with government, industry and academia.
Philip Gibson, Ph.D., CFP® is an Associate Professor of Finance and the
Director of the Financial Planning program at Winthrop University. His research
specialties are asset management, mutual fund performance and investment
advisor relationship with households.
The Researchers: The research was conducted by a team of prominent scholars and those with expertise
in financial planning and experience working with the next generation of talent joining the profession.
ABOUT
Michael Guillemette, Ph.D., CFP® is an Assistant Professor and the MS Program
Director in the School of Personal Financial Planning at Texas Tech University. He is
the academic advisor for Texas Tech’s FPA® Challenge Team, which placed first
nationally in 2020 and 2018. His research on investment risk and insurance has been
quoted in media outlets such as CNBC, Bloomberg and The Wall Street Journal.
60
About the Contributor: The Ensemble Practice LLC is a prominent business consulting firm for
the financial services industry. It is committed to helping independent financial advisors create multi-
professional ensemble firms with strong organic growth and sustainable profitability. The firm also
hosts the G2 Leadership Institute—a training program for the future leaders of advisory firms. The
firm is founded by Philip Palaveev, a highly regarded industry expert, thought leader and author of the
book “The Ensemble Practice.” For more information, visit ensemblepractice.com.
About CFP Board: Certified Financial Planner Board of Standards, Inc. is a professional body for personal
financial planners in the U.S. CFP Board sets standards for financial planning and administers the prestigious
CFP® certification—one of the most respected certifications in financial services—so that the public has
access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for
Financial Planning, is committed to increasing the public’s awareness of CFP® certification and access to a
diverse, ethical and competent financial planning workforce. Widely recognized by firms as the standard for
financial planning, CFP® certification is held by over 90,000 people in the U.S. Learn more at CFP.net.
About CFP Board Center for Financial Planning: The CFP Board Center for Financial Planning
seeks to create a more diverse and sustainable financial planning profession so that every American has
access to competent and ethical financial planning advice. The Center brings together CFP® professionals,
firms, educators, researchers and experts to address profession-wide challenges in the areas of diversity
and workforce development, and to build an academic home that oers opportunities for conducting
and publishing new research that adds to the financial planning body of knowledge. More about the
Center and its initiatives can be found at CenterforFinancialPlanning.org.
61
Ajamu Loving, Ph.D., CFP® is an Assistant Professor of Finance at the University
of North Texas at Dallas and the Founder of Loving Consulting, LLC. Prior to
academia, Dr. Loving was a consultant at LaSalle Bank (now Bank of America)
in Chicago, IL.
Deborah Nason, MA is a freelance business journalist covering personal finance
and the investment advice industry. She has written for InvestmentNews and
CNBC, and has authored the book “The People’s Guide to Finding the Right
Financial Advisor.” Deborah is also an adjunct professor at Post University.
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