(Word Count: 900 – reading time 3.5 min)
The job goes by a lot of names, including financial planner, financial advisor and personal financial consultant, but it’s rarely called what it typically is: financial products sales.

Financial planners earn a living by helping people sort through and choose investments,  insurance and other financial products. They do retirement planning, college funding,  estate planning and general investment analysis.

Obtaining New Business

Finding clients who need those services and building a customer base is crucial to experiencing success as a financial planner or advisor because referrals from satisfied clients are an important source of new business. Whether you find new clients by giving seminars or lectures, through social or business contacts or simply by cold calling, find them you must.

Having a broad social network is one reason that many successful financial planners enter the field after working in a related occupation such as accountant, auditor, insurance sales agent, lawyer, or securities, commodities and financial services sales agent. Yet, there are many advisors that built a fortune in this field with minimal social network.

What Education Will Lead to Employment?

Financial planning employers look for candidates with a bachelor’s degrees in accounting, finance, economics, business, mathematics or law. Courses in investments, taxes, estate planning and risk management are also helpful. Programs in financial planning are becoming more widely available in colleges and universities.

Advisors usually seek the Certified Financial Planner (CFP), the Registered Financial Consultant (RFC) and Chartered Financial Consultant (ChFC) designations.

Generally, a license is not required to work as a personal financial advisor, but advisors who sell stocks, bonds, mutual funds or insurance may need licenses from Bank Negara and/or Securities Commission, BURSA.

Where Do Advisors Work?

More than half of all financial advisors work for finance and insurance companies, including securities and commodity brokers, banks, insurance carriers and financial investment firms. However, four out of 10 personal financial advisors are self employed, operating small investment advisory firms, usually in urban areas.

According to the surveys done by recruitment agencies, the overall employment of personal financial advisors is expected to increase faster than the average (by 27% or more) for all occupations through 2014. This is a result of the increased investment by businesses and individuals, the rising number of self-directed retirement plans and the growing number of seniors. Personal financial advisors will benefit greatly as baby boomers save for retirement and as a better educated and wealthier population requires investment advice. In addition, people are living longer and must plan to finance more years of retirement.

Is financial planning the right career for you? Take this quiz to help you find out:
Quiz:

1. How comfortable are you with making sales?
A. I could sell my grandmother a ticket to a Star Wars movie with no guarantee that she’ll enjoy the performance.
B. I could sell my grandmother that Star Wars movie ticket, but I would feel guilty if she didn’t like the show.
C. Only a bad person would sell his or her grandmother a Star Wars movie ticket.

2. At what stage of life are you?
A. I just graduated from college.
B. I’ve been out of school for a few years.
C. I’ve been in my line of work for several years, but I’m ready for a change.

3. How much of an extrovert are you?
A. I have been the president of nearly every club I have ever joined.
B. I have enough friends to make me happy.
C. A good book, a room to myself and no interruptions is my idea of heaven.

4. You could be described as:
A. both analytical and a good communicator.
B. analytical, but not a good communicator, or a good communicator, but not analytical.
C. neither analytical, nor a good communicator.

5. At work, I prefer to do my job:
A. completely independently
B. somewhat independently.
C. as part of a team.

6. What appeals most to me about becoming a planner is:
A. the challenge of building a client base.
B. the creation of my own business.
C. the analysis of investments.

7. According to the findings of FPAM, the median annual income for financial planners was $220,580 in 2007 - this includes commission income. How do you feel about that?
A. I’ve never been average and I’ll earn more than the median.
B. That would work for me.
C. Working for commissions only makes me nervous.

Results

If you answered mostly As, then financial planning could be the right career for you. You’re energized, rather than terrified, by the idea of earnings a substantial amount of your compensation through commissions. If you have the right connections and the energy level to work that network, you could succeed in this tough career.

If you answered mostly Bs, then you need a back-up plan. Financial planning might work, but you’re likely to end up among the 80% of planners who, according to William F. Cole’s “The Complete Financial Advisor” (2006), are in the business for less than five years. When sales don’t work out, what will you do next and how will you sell yourself to your next employer?

If you answered mostly Cs, don’t even think about financial planning. If you love the portfolio analysis side, consider working as a financial analyst. If math is your strong subject, go into financial engineering or quantitative analysis. You’ll make more money without having to sell all day long.

By Dona DeZube (Author, Column Writer)

(Word Count: 461 – reading time 2.0 min)
For many of us, the words “financial” and “planning” are rarely seen in the same sentence. It’s not that we don’t want a secure financial future; it’s just that…well fill in your own excuse here! But for those people with a knack for this dark art and those with great people skills the world of financial planning is a career oyster waiting to be cracked open. Planners do different things, so there’s a lot to pick from within the career.

The Job

“The reality is we do a number of different things,” says Michael Branham, certified financial planner and director of career development with the Financial Planning Association of Minnesota (www.fpamn.org).

The title “financial planner” can refer to anybody in the financial services arena, including brokers, comprehensive planners or insurance agents.

“I try to quarterback helping people reach their financial and personal objectives,” adds Nate Wenner, certified financial planner and director of public relations for FPA Minnesota.

“We’re sort of like therapists,” observes Branham. “We help people through the good times and the bad times.” While financial planners need to be good with figures, what attracted Wenner to the career wasn’t crunching numbers it was helping people. “I enjoy getting to know them and getting to know what’s important to them,” he says.

Demand and Growth

“The Financial Planning profession is growing rapidly, as the need in the community for financial help is growing,” observes Wenner. “Our profession needs more people who enjoy and are good at helping others, and can serve those needs. Not just salespeople, but those who truly want to listen, advise and help consumers take action, using their own financial talents.” While there is a demand for financial planners, the key is going to be getting enthusiastic planners in specific niches that are best for them.

Career Development

Starting out as a new financial planner can be hard work. “It’s not easy,” says Wenner. “A lot of people try to do this right out of school and they find that they have to be planners and they have to be salespeople.” Wenner suggests working with another, more experienced planner to learn the trade. “A lot of us got in the business that way and we’re still seeing that,” says Wenner.

One of the Financial Planning Association’s goals is helping new planners become successful. To that end, they will match planners and employers. Students are welcome to attend FPA meetings at local chapter in Malaysia.

“They can learn about the practical aspects of the career,” says Wenner. Further, the FPA can help student planners get internships. “Because the failure rate is so high – predominantly due to career seekers’ unwillingness to withstand high frequency of rejection, they need to go into it with their eyes wide open,” says Wenner.

By Robert Elsenpeter (Columnist for Star Tribune Sales and Marketing)

(Word Count: 438 – reading time 2.0 min)
The average person can expect to change careers several times in his or her lifetime. One reason for all these career changes is that people often don’t make informed choices. While making an informed decision regarding your career is a good way to help insure that the career you choose is right for you, it doesn’t guarantee it. Even if you follow all the prescribed steps and choose a career that is right for you, it may not remain your best choice forever. Here are some reasons to consider leaving your current career for a new one.
You Should Consider a Career Change If;

• Your Life Has Changed
  When you chose your career your life may have been different than it is today. For example, you may have been single then and now you have a family. The crazy schedule or the frequent travel that is typical of your career may not suit your new lifestyle. You should look for an occupation that is more “family friendly.”
• The Job Outlook in Your Field Has Worsened
  Things looked promising for your field when you entered it. Due to changes in technology, the economy, or the industry you work in, job opportunities are no longer plentiful. You should look for an occupation that has a better outlook.
• You Are Experiencing Job Burnout
  Once upon a time you loved going to work everyday. You no longer feel that way. You can’t stand doing your job anymore and changing employers hasn’t helped. It could be time to find a career that will inspire you.
• Your Job is Too Stressful
  Some occupations are inherently stressful. After a while the stress can become too much to handle. To preserve your mental and physical health, you may have to find a career that is less stressful.
• You Find Your Work Boring
  When you did your initial research, the occupation you ultimately chose had a lot of advancement opportunities. Now that you’ve been working in that field, you’ve climbed as far up the ladder as you can go, and you miss the challenges you once faced. A career change can provide you with the challenge you crave.
• You Want to Earn More Money
  You may be surprised to learn that money isn’t at the top of the list when it comes to job satisfaction. Therefore, don’t be surprised if a career that will bring you higher earnings isn’t one you will find particularly satisfying. That said, if other reasons are leading you to consider a career change, higher earnings should be something you consider when you choose a new career.

By Dawn Rosenberg McKay (Career Planning Professional, Author)

(Word Count: 343 – reading time 1.5 min)
As baby boomers (work force in the 40’s) start their migration to the necessary next stage of life, i.e. retirement, their well-documented lack of preparation and financial savvy puts a whole new meaning to the words “financial planning”. Providing expert financial help is increasingly a task that’s not just about making money, but about helping people be ready to live the rest of their lives.

This has led to some dramatic changes in the financial services industry, and the careers surrounding it have changed, with many people being drawn to work as financial consultants or advisors as much to help others as to earn a good living. Gone are the days of stockbrokers racing the clock to time individual trades for clients. Instead, financial services professionals now are groomed to take a full service approach to their clients’ finances – helping them in all aspects of their financial life. What that means to those considering a career in financial planning is new opportunities.

“What can be more rewarding than knowing you’ve helped a client have their dream retirement and sending their kids to top-notch colleges?” asks Michelle Tang, a financial associate for an independent financial boutique, SFP Financial based in Singapore.

Those choosing a career as a financial services professional often enter the industry after spending 20, 30 or even 40 years doing something else. People from all walks of life, such as teachers, doctors and lawyers have started second careers as financial consultants.

A number of factors, including the current economic recovery, have turned the financial services industry into a highly competitive marketplace. What’s more, local surveys reports that “faster-than-average” employment growth is expected in the industry through 2012. To prepare for the growth, many firms are relying on their own niche to attract candidates who fit their culture to serve their clients.

Those who have entered the financial services profession are happy with their choice. According to the College for Financial Planning’s 2005-2007 Survey of Trends in the Financial Planning Industry, 98 percent of respondents reported that they were either satisfied or very satisfied with their profession.

By Editor, Financial Planning Association of Singapore

(Word Count: 648 – reading time 3.0 min)
While working as an intern for a Certified Financial Planner, Angie Ng was called into a meeting with a widow. Among the client’s concerns was the potential impact of the family’s unstable financial picture on her daughter’s dream of attending college.

Asked to research the matter, Angie generated a list of scholarship options and helped present it to the woman and her daughter. Two months later, the mother called to say her daughter was headed to the University of South Carolina with a scholarship in hand.

The client’s gratitude reinforced Angie’s decision to enter the financial planning profession, an increasingly popular option for students seeking a career based on helping people live their dreams.

What is Financial Planning?

A relatively young profession, financial planning emerged as a unique discipline about 30 years ago. Financial planning is the process of determining how an individual can meet life goals through the proper management of his or her financial resources. A financial planner/advisor takes a “big picture” view of a client’s financial situation and makes recommendations based on the client’s needs in areas such as budgeting and saving, taxes, investments, insurance, and retirement planning.

Working as a Financial Planner

Recognizing financial planning’s occupational benefits, the 2001 Jobs Rated Almanac ranked financial planning as the top career choice in the country. The survey considered a number of factors while ranking hundreds of jobs and concluded that financial consultants enjoy relatively low stress, have a high earning potential and enjoy a high degree of workplace autonomy. The personal satisfaction element cannot be underestimated.
“Frequently, I find that people are just overwhelmed and need direction, so it’s my job to listen, understand their situation and offer some options that will help them,” said Jesse Lau, a recent graduate. “It’s fulfilling to be able to help people do better, and it’s not just about their finances. It’s about blending the financial side with the other sides of clients’ lives so that they can achieve their goals.”

Future Career Prospects

Particularly within the last decade, demand for financial consultants has risen as individuals have had to assume more responsibility for their own retirement and other financial decisions.

“Over the next 15 to 20 years, the profession should experience significant growth, and practitioners should see increased income potential,” said Dr. Chiew, president of Asia Registered Financial Consultant based in Kuala Lumpur.

But for those who want big firm experience, the opportunities are plentiful and growing fast. Firms such as American Express Financial Advisors, Merrill Lynch, May Bank, RHB Bank actively recruit CFP certificants to staff their expanding advisory divisions.

Starting Salary Range

It’s hard to pinpoint starting salary in this field. Many entrants begin by selling commissioned-based financial service products, so salary is determined by sales ability. However, there are a growing number of positions for these graduates in other departments of financial planning firms.

Why Consider a Career in Financial Planning? Here are Just a Few Reasons!

• Increased investment by businesses and individuals is expected to result in faster-than-average employment growth (increase 21-35%) of financial advisors through 2010. This occupation will benefit as baby boomers save for retirement and a generally better-educated and wealthier population requires investment advice.

• In addition, people are living longer and must plan to finance more years of retirement. The rapid expansion of self-directed retirement plans, such as the EPF plans, is expected to continue. Most of the money in these plans is invested in mutual funds.

• As the number of mutual funds and the amount of assets invested in the funds increases, mutual fund companies will need increase numbers of financial analysts to recommend which financial products the funds should buy or sell.

• Growth in retirement plans will also increase demand for personal financial advisors to provide advice on how to invest this money. The median annual earnings of personal financial advisors were $220,580 in 2005.

By Editor, Financial Planning Association of Malaysia

(Word Count: 1,583 – reading time 6.0 min)
Financial planners (also referred as advisors or consultants) and analysts help guide businesses and individuals in making investment choices. Both carry out financial research and analysis, which they use to provide investment suggestions to clients. However, advisors and analysts differ in their clientele and in the information, they give out. Financial analysts evaluate the economic outlook of different sectors and industries for organizations that wish to invest. Financial advisors work with individual clients and focus on a wide range of personal investment needs – most financial institutions refer them as personal financial advisors.

Securities analysts are employed by insurance companies, banks, securities firms, pension and mutual funds, and other organizations interested in assisting their customers in the investment process. Analysts research industry statements and use company sales, costs, commodity prices, tax rates, and expenses to evaluate a firm’s current and projected value. Analysts also meet with executives to evaluate an organizations leadership and market outlook. In addition, analysts research whole industries, evaluating business strategies, product trends, and market competition. In order to correctly interpret a company’s success and value, analysts must also be familiar with and understand the market effect of industrial regulations and policy changes.

Using statistical software and spreadsheets, financial analysts evaluate data, identify patterns, and formulate predictions used to make recommendations about selling or buying various investment and securities products. Analysts with asset management responsibilities often make purchasing and selling decisions for their clients. Some Analysts focus on determining risk levels connected with different investment possibilities.

Some companies have investment banking divisions with teams of analysts dedicated to researching companies interested in making initial public offerings. These teams also make certain that all paperwork is filled out in accordance with the guidelines of the Securities Commission (BURSA Malaysia). In addition, they present information to investors regarding the potential of new corporations. Financial analysts are also responsible for researching the pros and cons of possible company mergers and buyouts.

Ratings analysts assess the capacity of bond issuing company’s (or governments) to fulfill loan obligations. From their findings, the analyst team gives the company or government a bond rating that is similar to an individual’s credit rating. Often finance professionals also evaluate credit, analyze budgets, and assess costs.

Personal Financial Advisors (sometimes referred to as financial consultants or financial planners) combine their experience and understanding of tax laws, insurance, and investments to help clients accomplish their short and long-range financial objectives. The items advisors typically focus on are estate planning, saving for college, retirement, as well as general investment. The typical advisor can provide recommendations in many aspects of finance, but there are some who concentrate on specific areas like asset protection, retirement or estate planning.

Advisors start by sitting down with a client looking at their financial situation to help them identify financial goals. From this information, an advisor creates a financial plan for the client that addresses problems and suggests ways to fix them, and then Identifies possible investment ideas that best meet the needs of the client. Very often, these recommendations are verbal, although some advisors prepare formal reports. Once a plan is in place, advisors generally meet with their clients on a yearly basis to revise and adjust the plan to life changes and new investment opportunities. In addition, advisors respond to questions about the impact of life changes and benefit plans on their financial situation.

There are advisors who act as brokers, buying and selling stocks, bonds, and other investment products while others recommend the services of other professionals. For instance, an advisor may recommend a particular accountant or insurance agent or lawyer. In addition, many advisors act as asset managers for their clients.

The most essential skill a financial advisor can have is the ability to attract and keep customers. Happy clients are best resource for finding more happy clients. Some advisors use seminars and finance classes to attract new customers.

Job Training and Qualifications for Financial Advisors

A bachelor’s degree is essential for financial analysts and highly recommended for personal financial advisors. Analysts should probably have a degree in business administration, accounting, finance, or statistics. In addition to training in statistics, business, and economics, and understanding of administration and accounting are strongly suggested. Additional recommendations include courses on bond valuation, risk management, and options pricing.

While there is not a particular emphasis of study preferred for personal financial advisors, a degree in economics, law, business, accounting, finance, or mathematics offers a good footing for the position. Investment, risk management, tax, and estate planning classes are vital. Financial planning degrees are also becoming more common on college campuses. Still, a large number of advisors begin in other associated fields like insurance sales, law, financial services brokerage, auditing, and accounting.

Personal financial advisors and financial analysts must have computer, analytical, mathematical and problem-solving skills. Also, because analysts and advisors must explain their findings and recommendations to others, they must have excellent presentation skills, self-confidence, maturity, as well as the ability to work alone.

Among other skills a financial analyst must possess are a strong attention to detail, a drive for research, and an understanding of tax laws, money markets, and the economy in general. In addition, people skills and salesmanship are also very important.

While not necessary to work in finance, several certification organizations offer professionals opportunities to increase their knowledge, understanding, and prestige through certification. The association of Investment management and Research offers certification as a Chartered Financial Analyst (CFA). Qualifications for certification include a completed bachelor’s degree, three years financial experience, and successful completion of three essay tests. The test, which includes topics like economics, accounting, portfolio management, asset valuation and securities analysis, is taken annually until all three are completed.

Certification for personal financial advisors includes the Certified Financial Planner designation offered by the Certified Financial Planner Board of Standards (local representative here is FPAM). Candidates must have earned the necessary education, have applicable experience in finance, pass an examination, and agree to and follow an established code of ethics. The Chartered Financial Consultant (ChFC) is another credential that is obtainable from the American College in Pennsylvania (MII is the local representative). In addition to career experience, candidates must finish eight instructional classes to qualify for certification. Annual refresher courses (usually amounting to 30 hours of studies) are required to maintain status in each of these designations.

Though personal financial advisors do not need to be licensed in most part of the world, in Malaysia and Singapore, they must be licensed. In addition, legal advice cannot be given unless the advisor is licensed to do so. Many advisors who lack these qualifications offer clients the services of other licensed professionals.

Financial analysts can move up to positions as finance or portfolio managers that oversee all the investments of a corporation or customer. Upward movement for personal financial advisors is typically accomplished by expanding your clientele; however, those who work for organizations can advance by filling management positions.

Job and Employment Opportunities.

Because of the expansion of both individual and business investment, jobs for financial analysts and personal financial advisors will continue to grow through the next decade. As the number of people involved in investment increases, and as the next generation of retirees begins to think more seriously about the future both analysts and advisors will have the opportunity to provide them the financial services they need. The increased life expectancy also forced retirees to plan for more years of retirement. As the international securities economy expands, so will the need for advisors and analysts who understand it.

Another catalyst for growth in the financial services industry is deregulation. In the past few years insurance companies, banks and brokerages have been able to broaden the services they provide to include investment advice. Many banks are becoming involved in brokerage and investment activities and need qualified financial analysts to support new customers.

The demand for personal financial advisors will likely outstrip average demand for all other occupations over the next decade. The increase in EPF savings nationwide and other individually managed retirement accounts will likely persist. As investment activity of all kinds increase, people will seek out the expertise of qualified financial advisors to assist in their investment planning. Certified professionals are among those with the greatest outlook.

The demand for financial analysts will likely keep stride with the average demand for all other occupations over the next decade. Because of the expanding popularity of the mutual fund, mutual fund companies will have to hire more and more analysts that can make investment suggestions for the different funds.

Investment banking will also continue to require the services of qualified financial analysts to generate funds and assess mergers and buyouts. Although, the demand for financial analysts may be limited by the fact that more companies are outsourcing research to independent firms, which may lead to a reduction in internal research positions.

The need for financial analysts in investment banking is tied heavily to the performance of the stock market, and thus can vary widely. Likewise, corporate downsizing could possibly lead to the reduction of analyst positions throughout the industry. Elite job opportunities will be few and highly contested.

Historical Earnings

In 2006, the average annual salary for a financial analyst was $87,100. The salary of middle half ranged from $73,600 to $86,620 while the bottom 10th brought in less than $54,570 and the top 10th earning in excess of $118,060.

There are financial planners or consultants whose incomes reach well into the hundreds of thousands of ringgits each year, while the average stood at $220,580 in the year 2005-2008. Source: Bank Negara Malaysia, NAMLifa and FPAM.

By Editor, Financial Planning Association of Malaysia

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